Communication skills extend beyond one’s ability to speak a language to include non-verbal communication and interpersonal skills and confidence. A number of our own respondents mentioned “accent” as opposed to “language” as a barrier to business. Other research has shown that having a heavy accent can be a disadvantage in the labour market, but no research on accent and business ownership was found.
As Identified by Key Informants Many of the responses from key informants echoed those of immigrant entrepreneurs, but they also spoke more about the lack of preparation and lack of understanding of Canadian business operation as being detrimental to the successful establishment of a business. In some cases, these misunderstandings may be as fundamental as not realizing that taxes will be owed on business income.
Without question, immigrants have more challenges than a Canadian-born. They face all the same challenges of seeking employment, and more. They have to face all the barriers, plus find money to start the business and keep it going. They are in a very high risk situation, and it’s much more challenging. — Key informant
Service providers felt that immigrants faced the same issues as non-immigrants for the most part: they may be excited about the prospect but lack a decent business plan, they are enthusiastic but may not want to go through the hoops that are required, they need to take more time for learning and planning prior to business launch. Key informants placed more emphasis on the need for entrepreneurs to take responsibility to prepare themselves for owning a business. Again, this is not unique to immigrants and is born out in the high failure rates of small businesses in Canada. Included below are points raised by key informants that add a new perspective or nuance to the barriers identified by entrepreneurs. Key informants’ views were not always in accord with each other, but the ones expressed here resonated more widely among those interviewed. Obtaining adequate financing. Due to lack of credit history and business experience in Canada, it can be very difficult to obtain start-up funds from a financial institution. Difficulties around financing are evidenced in several regards:
•
The idea of borrowing money to start a business is a new idea for many immigrants, as is relying on collateral to guarantee the loan. It is difficult to get loans, but there is also a reluctance to borrow. One entrepreneur told us that she did not want to take out a loan because there would be no way to pay it back if her business failed.
•
Some immigrants believe that the government gives out grants to start businesses. Small Business Enterprise Centres receive requests for grants from immigrants who are disappointed to learn that there is no such opportunity.
•
As a result of financing difficulties, many small businesses are under-capitalized. This limits their ability to survive business downturns and to plan for business growth.
•
Access to funding is very difficult for technology companies. Banks still fund bricks and mortar companies, although our economy has moved past that. Banks do not fund ideas, yet that is precisely what many entrepreneurs have: ideas to develop products.
•
Small business is not well-respected by Canadian government and banks. Other countries such as Singapore are much more receptive to business start-up, with banks working in partnership with government to encourage new enterprises.
page 28 | Winning Strategies for Immigrant Entrepreneurship in Five Communities