The Canadian startup scene is generally believed to be a glamorous lure for prospective entrepreneurs from all around the world. In recent years, Canada, as a thriving hub for startups, has been popular with entrepreneurs for various reasons. In this blog, we will find out more about the reasons for its popularity as well as the country’s standing in the world.
Government support
Foreign entrepreneurs are lured into Canada’s startup scene because the Canadian government offers dozens of great incentives including:
Funding support
The Canadian government provides, for instance, funding support. It offers financial support through loans, grants, credits, tax breaks, and refunds. Canada also assists prospective entrepreneurs with the Venture Capital Catalyst Initiative programme developed by the government.
SR&ED support
Viewed as a deciding factor which can increase the success chances of a startup business, incubators are a major part of the educational system in many Canadian universities and are all funded by the government. Up to 65% the incubators’ research and development costs get refunded under the Scientific Research and Experimental Development Tax Incentive Programme (SREDTP) developed by the government.
Startup visa
Entrepreneurs are attracted to this country because the government help them come and start their business here in Canada through the incentives to immigration it has created. As part of the Canadian immigration programme, Startup Visa is an incentive provided by the Canadian government.
Talent pool
Canadian universities are known as the world’s best educational institutions and the number of talents graduating from these universities is on the rise. These graduates are prepared and also eager to embark on their careers in startups launched in Canada. This talent pool provides startup owners with an opportunity to hire those who are educated and talented.
Presence of the tech giants in Canada
When hit upon something innovative, startups tend to invite the scrutiny of large tech companies such as Google, Amazon, Microsoft, and Facebook. The presence of such tech giants makes it possible for tech startups to considerably count on their support as they have the technology, talent, data, and money to improve, develop or reproduce and any technological innovation.
Friendly environment
Ranking fourth in the Global Startup Ecosystem Index, Canada provides a friendly and hospitable environment for those who wish to practice entrepreneurship in Canada relying on their great startup ideas and shrewd business acumen. It comes with no surprise that entrepreneurs are intrigued by the Canadians’ friendly approach to startups and hospitable environment.
Supportive communities
Those newcomers who know little about Canada’s startup environment can get help from many non-profit organisations and communities. They are ready to support the startup ecosystem to grow in Canada through the programmes they have developed to help entrepreneurs.
In addition to the reasons we have highlighted so far, there are some other reasons that make Canada a popular destination for many entrepreneurs and are worth mentioning. Canada’s close proximity to the United States enables entrepreneurs to have access to its market. As well, Canada’s high living standards prompt many entrepreneurs to start their business in this country. Too, Canada is a majority native English-speaking country which makes it a popular place for startup owners. Finally, the market oriented economic system in Canada which comes with very little government interference is also another factor which attracts entrepreneurs.
We are here at Bay&Co to help you start or bring your business to Canada. Whether it is a startup or a mature business, we can help you with your transition and growth in Canada throughout the entire process. Contact us today for more info!
