Note: This was a bilingual chat session, which means that the participants were able to submit their questions in English or French. Statistics Canada respects the Official Languages Act and is committed to ensuring that information products of equal quality are available in both English and French. For that reason, all the questions and answers have been translated in the other official language.
Grant Schellenberg at 14:05:54
Thank you for that question. In this study, we did not examine the intersection between source region and industry of business ownership. However, we are currently investigating that issue and will be publishing a research paper later in 2016.
Moderator at 14:09:44
bhanunischal, thank you for your question. Unfortunately, this question is not relevant to the topic of this chat. We will follow up with you by email in the following business days.
Danny Leung at 14:13:14
The administrative data we used for this analysis only covers the period from 2000 to 2010. Comparable information from earlier periods have not be integrated to facilitate this type of analysis. Hence, we cannot compare the results from the 2000s to the 1990s. However, the data file will be updated on an ongoing basis, providing scope to examine changes over time and across the business cycle.
Danny Leung at 14:13:51
The study did not look specifically at this dimension. However, it is possible that the barriers to entry related to these industries (for example, capital costs) are lower here than in other industries, such as manufacturing.
Danny Leung at 14:15:18
We showed in the paper that non-immigrants have higher average earnings over all quintiles. Please see Table 23 in the paper.
Grant Schellenberg at 14:15:27
Our analysis is done at the national level. In principle, our data allow for a more detailed breakdown of ownership rates by province. Our future research may provide an answer to your question.
Moderator at 14:17:29
isans_business, thank you for following along!
Grant Schellenberg at 14:19:08
Thank you for your question. The purpose of this study was to paint an initial portrait of the trends of entrepreneurship and job creation among immigrants. This portrait is for the national level. The question on whether the national trends are also observed in most provinces is interesting but was not examined. It may be examined in future studies.
Danny Leung at 14:19:56
A study that examines that issue in detail is
"Choice or necessity Do Immigrants and Their Children Choose Self-employment for the Same Reasons?" //www.statcan.gc.ca/pub/11f0019m/11f0019m2012342-eng.htm
Danny Leung at 14:21:22
The unknown category refers to the businesses whose industry codes have not been assigned yet. This is more related to the nature of administrative data and will be investigated in the near future.
Grant Schellenberg at 14:21:28
Thanks, Lin. In terms of factors affecting immigrant entrepreneurship, Feng Hou published a couple of papers a few years ago examining push/pull factors associated with immigrants' entry into self-employment. The paper is on the StatCan website: "Choice or necessity: Do immigrants and their children choose self-employment for the same reasons?" Your suggestion regarding the implications of housing price adjustments on secondary self-employment in real estate is a good one. It would also be interesting to examine this from a regional perspective.
Danny Leung at 14:27:41
The earnings for incorporated owners are not net self-employment income. They include wage/salaries, dividends and other income from their corporations. We did not produce the numbers in the paper. However, based on some follow-up analysis, non-immigrant incorporated business owners also earn higher than immigrant incorporated business owners.
Grant Schellenberg at 14:29:52
Assessing how much the Canadian economy is dependent on immigrant entrepreneurship is a difficult question because it involves: a) estimating the number of start-ups initiated by immigrants, and b) assessing the number of jobs directly and indirectly created by immigrants. The study computed neither the number of start-ups initiated by immigrants nor the number of jobs indirectly created by their businesses. The focus of the study was to estimate a) the percentage of business owners among immigrants and b) the number of people employed by their businesses.
Grant Schellenberg at 14:30:43
It is certainly possible to produce provincial-level results with these data, and there is clearly considerable interest in such information. We will look into this as a follow-up article.
Danny Leung at 14:38:30
Thank you. This is an interesting question. We did not examine the source of entry in this paper. However, in a current research project, we are examining the source of entry into business ownership. The transition from unincorporated to incorporated does exist, however, it is not as high as that from paid employment to incorporated business ownership.
Moderator at 14:40:58
ainnie, thank you for your question. Unfortunately, that subject is outside the experts' area of expertise.
Grant Schellenberg at 14:42:20
A very low proportion of unincorporated self-employed workers have employees. This is the case for only 2.5% of them.
Grant Schellenberg at 14:45:07
On April 29, 2015, Statistics Canada published a methodological paper on measuring the size of the underground economy. However, the paper does not disaggregate the results by immigration status. Herb Schuetze from the University of Victoria has published several papers on under-reporting of self-employment income, but he was not able to disaggregate the results by immigration status. In this study, we did not account for the possibility of different levels of income under-reporting.
Danny Leung at 14:48:10
In this paper, the definition of self-employment refers to those who report non-zero net self-employment income based on the CRA's definition of self-employment income, including professional, business, farming, fishing, rental and commission income. The CRA also has a clear rule to distinguish between paid employees and the self-employed. Please consult RC4110 on the CRA's website.
Grant Schellenberg at 14:50:11
Although the Provincial Nominee Program was first initiated in the late 1990s, it was not until the later 2000s that the number of immigrants admitted through the program was substantial. As we update the analytical data file beyond 2010, it will be possible to examine business ownership among immigrants in the PNP category. That being said, we do not have the information needed to disaggregate PNPs further into provincial entrepreneurial programs specifically.
Grant Schellenberg at 14:51:37
Immigrants who are mainly self-employed are younger than their Canadian-born counterparts. Approximately half of them (48.3%) are 45 years or older. The corresponding percentage for Canadian-born self-employed workers is 61%. Roughly half of immigrants who are primarily self-employed have a secondary school diploma or lower level of education. Finally, close to one-third (35.1%) of immigrants who are mainly self-employed work in real estate services, a proportion similar to the proportion of their Canadian-born counterparts (32.9%).
Danny Leung at 14:53:42
Hi! Nice to hear from you. The data used in this paper alone cannot address your question about whether the gap is due to differences in individual networks or some kind of regulatory barrier related to qualifications. There may also be other factors involved like differences in capital start up costs across industries.
Danny Leung at 14:56:22
We did not produce the distribution by industry and by source country in the paper. However, this is an interesting question that could be investigated in future research.
Grant Schellenberg at 15:01:03
Thanks, Diane. We did not examine the intersection between industry and income quintiles. This could be an interesting avenue for further research.
Danny Leung at 15:01:13
Yes, it definitely would be feasible to produce distributions of that nature. The one caveat that I can think of is that it is sometimes difficult to find the industry for the smallest firms. An indication of this issue in the current paper is the size of the other category in, for example, Table 1.