Out of the 794 invitations sent out by the province to immigrant entrepreneurs all over the world, only 14 of them ended up obtaining their permanent residency in Nova Scotia, projecting a lower than two per cent turnout rate.
Since 2017, the province has sent out over 200 invitations annually to prospective immigrants asking them to bring their investment or business to Nova Scotia. In return, the province would endorse the candidate on their permanent residency application under the entrepreneurship immigration program. The endorsement is believed to be a guarantee for permanent residency.
However, the rigid requirement has stopped many from coming through the door. Upon invitation, the applicant can enter Canada on a work permit but they will have to keep the business running for at least a year to qualify for the final nomination.
“Basically, if you’re not able to establish the business and make your investment and run the business for a year. Then, you don’t get nominated. You’ve come here, uprooted your family, made your investment, all on speculation because you’re only temporary,” said Elizabeth Wozniak, lawyer and founder of North Star Immigration Inc., in a phone interview.
Uncertainty makes for hard sell
The program asks the applicant to invest at least $150,000 to establish a business that has a net worth of at least $600,000.
Wozniak said the uncertainty of the program makes it really hard to sell.
“What kind of business person is going to do all that and make that investment with no guarantee that they’re going to ultimately become a permanent resident,” said Wozniak.
The Nova Scotia Immigration office said the entrepreneur stream is an important tool that allows experienced business owners to immigrate to Nova Scotia by starting or purchasing an existing business in Nova Scotia.
“Many applicants receive ITAs but do not commit, withdraw or have their file closed due to not meeting timelines for information,” said NSI spokeswoman Elizabeth MacDonaldin an email statement.
cRBC senior economist Andrew Agopsowicz of Halifax said Nova Scotia’s economy needs more business investment. – Contributed
We need investment and immigrant entrepreneurs
Senior economist Andrew Agopsowicz at RBC said although migrant workers are important to maintain a robust labour force, the economy needs more investment.
“I think if you want to spur real economic growth going forward you definitely need to have strong investment people starting new businesses, and people creating, generating that internal energy for the region,” he said.
According to a Statistics Canada study, immigrant-owned firms are younger and because of this, they grow faster. These younger firms are more likely to expand and so they contribute significantly to overall job creation in Canada. In the study, firms owned by immigrants accounted for 25 per cent of net jobs created by private incorporated firms but only accounted for 17 per cent of the sample.
The easy fix to cut off the middleman
The entrepreneurship stream doesn’t recognize temporary status for entrepreneurs. This means if a newcomer comes to Nova Scotia on a temporary work permit and starts a business, their entrepreneurship experience is not going to help them to stay in Nova Scotia permanently.
Wozniak said that the first year of operating the business should count for the Nova Scotia entrepreneur program.
“Nova Scotia could cut out the middleman essentially. Just recognize the people here who’ve worked for a year in a business that they own should qualify for nomination and PR through the entrepreneur program,” she said.
Wozniak said this is a simple fix because the federal government has vetted and researched those applicants when they applied for a work permit.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
OTTAWA – Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth.
The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.
Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.
Clothing and footwear prices also decreased on a month-over-month basis, marking the first decline in the month of August since 1971 as retailers offered larger discounts to entice shoppers amid slowing demand.
The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also edged down in August.
The marked slowdown in price growth last month was steeper than the 2.1 per cent annual increase forecasters were expecting ahead of Tuesday’s release and will likely spark speculation of a larger interest rate cut next month from the Bank of Canada.
“Inflation remains unthreatening and the Bank of Canada should now focus on trying to stimulate the economy and halting the upward climb in the unemployment rate,” wrote CIBC senior economist Andrew Grantham.
Benjamin Reitzes, managing director of Canadian rates and macro strategist at BMO, said Tuesday’s figures “tilt the scales” slightly in favour of more aggressive cuts, though he noted the Bank of Canada will have one more inflation reading before its October rate announcement.
“If we get another big downside surprise, calls for a 50 basis-point cut will only grow louder,” wrote Reitzes in a client note.
The central bank began rapidly hiking interest rates in March 2022 in response to runaway inflation, which peaked at a whopping 8.1 per cent that summer.
The central bank increased its key lending rate to five per cent and held it at that level until June 2024, when it delivered its first rate cut in four years.
A combination of recovered global supply chains and high interest rates have helped cool price growth in Canada and around the world.
Bank of Canada governor Tiff Macklem recently signalled that the central bank is ready to increase the size of its interest rate cuts, if inflation or the economy slow by more than expected.
Its key lending rate currently stands at 4.25 per cent.
CIBC is forecasting the central bank will cut its key rate by two percentage points between now and the middle of next year.
The U.S. Federal Reserve is also expected on Wednesday to deliver its first interest rate cut in four years.
This report by The Canadian Press was first published Sept. 17, 2024.
FREDERICTON – New Brunswick‘s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.
Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.
The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.
Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.
Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.
Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.
Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.
This report by The Canadian Press was first published Sept. 16, 2024.
