Immigrant Entrepreneurship: Challenges, Opportunities and Innovation in Canada’s Evolving Economy
During the National Metropolis Summit researchers shared data and highlighted initiatives that foster entrepreneurial growth within Canada’s immigrant communities
From March 13 to 15, 2025, the National Metropolis Summit took place at the Westin Harbour Castle in Toronto, attracting over 1,100 registrants to discuss pressing issues related to immigration in Canada. As the country continues to navigate complex immigration policy challenges— including limitations on the number of newcomers— researchers at the summit emphasized how immigrants have long been essential to the growth and prosperity of the economy. Co-hosted by the Diversity Institute (DI), the summit featured multiple sessions by DI representatives including one led by senior research associate Zohreh Hassannezhad. Her session delved into the unique challenges and opportunities facing immigrant entrepreneurs in Canada, highlighting how these individuals are shaping the Canadian economy while navigating barriers such as access to funding, difficulties with credential recognition and a lack of social capital.
Immigrant entrepreneurs in Canada
Hassannezhad opened her session by presenting key data on immigrant entrepreneurship, highlighting the significance of this group in Canada’s economy. Immigrants make up approximately 23% of the Canadian population. The immigrant demographic is notably younger, with an average age of 28 years, compared to 42 years for the general Canadian population, and are highly educated, with 55.3% holding a bachelor’s degree or higher. “They are hiring a lot more people. They are building businesses,” she said, pointing to data that shows immigrants account for 32% of all business owners with paid staff in Canada, creating jobs in all sectors of the economy.
Despite these positive indicators, Hassannezhad pointed out that immigrant entrepreneurs face systemic barriers, with many immigrants pushed to entrepreneurship because they face barriers in accessing traditional jobs. “Their entrepreneurship is mostly a necessity,” she said. Some other barriers they face include issues with credential recognition, barriers to financing, with immigrants frequently facing difficulties due to lack of credit history and bias in accessing loans. Additionally, language barriers can hinder networking and market expansion, while a lack of social capital further isolates immigrant entrepreneurs from opportunities.
Women entrepreneurs drive innovation
Recently, the DI’s Women Entrepreneurship Knowledge Hub launched the executive summary of its annual State of Women’s Entrepreneurship in Canada 2025 report, which found immigrant women are increasingly leveraging their cultural backgrounds to create innovative businesses, particularly in the food sector. Programs like the Women’s Enterprise Organizations of Canada National Loan Program and the Immigrant Women Entrepreneurship Network (IWEN) are critical in supporting these entrepreneurs through training, coaching, and access to financing. The IWEN program, for example, provides tailored support to immigrant and refugee women through mentorship and networking opportunities, helping them overcome challenges in launching and scaling their businesses.
The session also highlighted several key initiatives aimed at supporting immigrant entrepreneurs. Hassannezhad noted that programs such as the Newcomer Entrepreneurship Hub, MindFrame Connect and the Black African and Caribbean Entrepreneurship Leadership Program (BACEL) which help immigrant business owners through training. MindFrame Connect, which connects mentors and mentees, has trained over 150 participants, and helped build relationships across the ecosystem. Through BACEL more than 550 entrepreneurs were trained, many who said that programming had the greatest impact when it came to access to funding and network growth.
Unlocking the full potential of immigrant entrepreneurs
Despite the barriers, the potential for immigrant entrepreneurs remains strong. Hassannezhad concluded by emphasizing the need for integrated support systems that offer “one-stop” solutions to address language barriers, financial accessibility and networking. She also underscored the importance of mentorship and coaching, as well as providing opportunities for immigrants to leverage their international networks and experiences as competitive advantages.
Hassannezhad referenced a recently published book, Immigrant Entrepreneurship Challenges and Opportunities produced by DI, which comprehensively examines the dimensions, challenges and opportunities immigrant entrepreneurs face in Canada and beyond as a resource for those interested in learning more. To close, she highlighted that immigrants in Canada continue to be key contributors to the economy, accounting for 32% of business owners with paid staff. However, addressing the barriers to success is crucial for unlocking the full potential of immigrant entrepreneurs. Stronger support systems, tailored training and improved access to funding will be essential in ensuring that these entrepreneurs thrive and continue to contribute to Canada’s economic growth.