Immigrants Are More Likely to Become Entrepreneurs, Explains A Study

entrepreneur, startup, start-up

According to the recent study done by Peter Vandor, who serves as a senior researcher and lecturer at the Vienna University of Economics and Business says that Immigrants are more likely to become entrepreneurs as compared to the locals because they are more willing to take risks to create a better life for themselves after leaving their country and beginning a new journey.

The paper was published in the journal of World Business, where the researcher, Vandor explained that international immigrants are building startups at a much higher rate in the country when compared with the native born, and the reason behind this is explained as their willingness to take more risks to create a better future. 

“Voluntary international migrants have a more entrepreneurial personality due to self-selection,” writes Peter Vandor, a senior researcher, and lecturer at the Vienna University of Economics and Business.

Vandor also explained that an individual’s personality traits also play a role when it comes to pursuing entrepreneurship. It is also not the first time a study has indicated this; over the years, many researchers have tried to reason why immigrants are opting for entrepreneurship at a higher rate. 

Discrimination and Social Networks are said to fuel immigrant entrepreneurship

Vandor wrote in his paper, “Prominent among the early answers provided by the literature was the argument that disadvantages in the labor market and discrimination push migrants to become entrepreneurs.”

His theory explains that immigrants often struggle with discrimination and lack of opportunity to decide to start something of their own. 

Vandor also argued that, as immigrants originally belong to another country and then enter a new country, they are more likely to have more social networks that help them capitalize on their startup. However, he also gave very simply yet thought-provoking arguments that say that, mostly, people with entrepreneurial personalities are more likely to take a risk and immigrate in search of a better future. 

Individuals with certain personality traits are more likely to migrate, and these personality traits also make them more likely to start a business as migrants.

“This means that the frequently observed relationship between voluntary international migration and entrepreneurship is partially explained … by personality traits that are more pronounced among voluntary migrants due to self-selection.”

The study was conducted on 1,385 students, based on which Vandor concluded his results. “Results showed a clear link between (voluntary international migration) and entrepreneurship as measured by behavioral intentions, preparatory activities, and long-term actions,” he wrote. 

Immigrants who are willing to start a business are provided with a Start-up Visa program. Immigrants can qualify for a permanent residency in Canada under it.

Immigrants are offered with business consultants help to be successful

In Canada’s startup ecosystem, Business consultants often offer their advice on investing and development of the company, and that is often backed by oversight from corporate business immigration lawyers, The job of these immigration lawyers is to ensure a start-up’s business concepts meet all the terms and conditions as per the industry, 

The general eligibility requirement for the start-up visa program imposed by the government are:

  • proficiency in English or French at the minimum Canadian language benchmark level 5. 
  • a qualifying business
  • sufficient available and transferable settlement funds
  • letter of support and commencement certificate from a designated entity.

The startup visa does not require any previous management experience, unlike the federal and provincial level entrepreneur program requiring a minimum of one or two years of previous experience of top-level management or owning a business. 

Start-up Visa Provides a Fast Route to Work Permit and Permanent Residency

More immigrants are likely to pursue entrepreneurship because applying for a work permit through the start-up visa program is much easier and quicker than other options. 

Immigrants can easily apply for residency with a viable business project and can expect to secure a letter of support and commitment certificate within just four to six months via Ronen Kurzfeld Immigration

In approximately 18 months, the immigrant can finalize the application for a permanent residence visa. In order to be qualified for permanent residence, the candidate must meet the following requirements:

  • The intended business must be carried in Canada
  • Candidate must own 10 percent of the voting rights in the corporation
  • No other person should be holding 50 percent or more of the voting rights in the corporation. 


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