Canada is known for its welcoming attitude towards entrepreneurs and start-up businesses. The Canadian government has made significant efforts to attract foreign talent and innovation. One way the government supports startups is through the Start-up Visa ("SUV") Program, which helps foreign entrepreneurs bring their innovative business ideas to Canada.
The SUV Program is designed for entrepreneurs who have an innovative business idea that can create jobs in Canada and compete globally. To be eligible, the entrepreneur must have the support of a designated organization, which can be a business incubator, angel investor group, or venture capital fund.
Each designated organization has its own criteria for assessing whether the business proposal has potential and is likely to succeed in Canada. Generally speaking, the business proposals should demonstrate that there is a demand for the proposed product or service in the Canadian market. It could be products or services that do not currently exist in the market, or an improvement that seeks to bridge the market gap.
In this article, we are going to discuss several types of businesses that show high potential of growth in Canada, thus are worthy of attention by entrepreneurs who are interested in the SUV Program. It should, however, be noted that the industries discussed below are by no means exhaustive under the SUV Program.
Digital Health Solutions
The healthcare industry is a vital sector in Canada, and it continues to experience growth and innovation. With an aging population and increasing demand for healthcare services, the industry presents numerous opportunities for startups to develop innovative solutions. One area where startups are finding opportunities in the healthcare industry is in the development of digital health solutions. According to Statista, the revenue in the digital health market is projected to reach US$2.81 billion in 2023, and it is expected to continue growing at an annual rate of 8.95% in the coming years.
Other areas where startups are finding opportunities in the healthcare industry include medical devices, telemedicine, and artificial intelligence. The growth of these industries is driven by factors such as changing consumer preferences, regulatory changes, and advancements in technology. The healthcare industry in Canada presents numerous opportunities for startups to develop and grow their businesses, especially in the area of digital health solutions.
E-Commerce Solutions
E-commerce is a rapidly growing industry in Canada, with the pandemic accelerating the shift towards online shopping. According to Statistics Canada, e-commerce remains an important platform for business operations in Canada, even though there is no more pandemic-related lockdowns and restrictions. From February 2020 to July 2022, retail e-commerce sales increased by 67.9%, and the share of e-commerce sales as a proportion of total retail sales increased markedly from 2019 to 2022. This trend is expected to continue in 2023 and beyond, with more consumers preferring the convenience and safety of online shopping.
E-commerce is thriving in Canada, with projections indicating continued growth in the coming years. With a large and digitally-savvy consumer base, Canada is an ideal location for e-commerce startups looking to establish and expand their businesses.
Fintech Solutions
Canada has a supportive ecosystem and regulatory environment that presents opportunities for startups in the fintech industry. Canada's fintech industry encompasses a range of sub-sectors, including payment processing, lending, and wealth management. The country's regulatory framework is also supportive of innovation, with initiatives such as the Sandbox Pilot Program allowing fintech startups to test their products in a controlled environment.
In addition, Canada's highly skilled workforce and strong banking system provide a foundation for fintech startups to thrive. Canada is home to a number of successful fintech startups, such as Wealthsimple and Borrowell, which have achieved significant growth and attracted substantial investment.
How to Succeed under the SUV Program
Apart from having an innovative and viable business idea, a candidate must demonstrate a strong commitment toward developing their start-up business in Canada in order to succeed under the SUV program. Contrary to the perception or marketing surrounding the SUV program, it is not a passive program. Such program calls for the applicants to be actively and personally involved in developing the start-up business in Canada and be able to provide detailed documentations to show concrete business progress.
The applicants are expected to obtain a work permit to work on their business in Canada, while waiting for Immigration, Refugees and Citizenship Canada ("IRCC") to process and assess their permanent residence application. During this time, the applicants will be required to provide a detailed business progress report supported by abundant evidence and documentations about the growth and advancement of their business in Canada. Such documentations include but not limited to the certificate of incorporation, corporate bank account document, market research and analysis reports, collaboration agreements with local Canadian entities to develop and/or manufacture the product, a clear technology development roadmap with budget and timeline, etc. Above all, it is crucial to show the development progress of the actual product, including all the drafts, designs and photos of the product. If the product is an app or online platform, the applicant would be expected to provide the wireframe designs, program specifications, and/or source codes.
The above are some examples of what IRCC looks for from SUV applicants. At the end of the day, what IRCC needs to be convinced is that the SUV applicant is personally involved and has expended significant time and efforts in developing their product and start-up business in Canada. Merely delegating the work to third party contractors or agents without getting personally involved in the project will not pass the strict scrutiny of IRCC. Again, all the time and efforts expended on the start-up business must be supported by cogent documentation. Thus, it is essential for any SUV candidate to keep detailed records of every step and progress made in their business. Without demonstrating such a high level of commitment to developing the business personally in Canada, we cannot see how it would be possible for a candidate to be successful under the SUV program.
Conclusion
The SUV Program in Canada offers a unique opportunity for innovative entrepreneurs from around the world to establish their businesses in a thriving and supportive ecosystem. The program welcomes a wide range of businesses, with the healthcare, e-commerce, and fintech industries showing continual growth and potential, among other industries. Our firm has a wealth of experience in the SUV Program to assist entrepreneurs who wish to take advantage of the opportunities available and develop innovative solutions in the Canadian market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.