Canada is an attractive option for North American entrepreneurs and businesses, as well as companies throughout the world that are seeking a greater and more direct North American presence. The following list includes the top 10 reasons Canada has become such a popular business choice.
1. Ease of Startup
The cost and difficulties associated with many startup periods are why most new companies fail. However, the World Bank lists Canada as the most-appealing North American country and the third-most-appealing country in the world in which to start a new business.
2. Cost of Doing Business
Canada also has the advantage of a lower cost of doing business; in fact, KPMG indicates the current cost of doing business is 5 percent lower in Canada than in the United States.
3. Cost of Doing Business
Despite global economic conditions that remain uneven and perhaps even perilous, the IMF has upgraded Canada’s 2013 growth expectations to 1.7 percent and 2014 expectations to 2.4 percent. These projections are a strong indication that Canada’s economy can remain stable despite the instability of the world economy.
4. Government Support
The Canadian government is very friendly to business startups and provides a number of opportunities for innovators. These opportunities include R&D investment, rebates and advantageous tax treatment for capital gains. Canada is also allocating significant funds to Canada’s venture capital ecosystem.
Canadian startups have often had to deal with their proximity to the U.S., but the qualities that have emerged from this then-disadvantage have become attractive to investors seeking stable opportunities. In other words, most businesses will have a significantly easier time acquiring investors in Canada than they would in the U.S. or Mexico.
6. Young Talent
Canada has an excellent education system that includes many top-notch engineering and business schools. In the past, most of the best graduates would immediately leave for the U.S., but current economic conditions have made staying home a more lucrative choice.
7. Open Immigration
Canada’s immigration policies are an important driver in its economic growth. The policies also make it easier for a company to fill voids with young, skilled workers.
Canada’s immigration policies have led to heterogeneous demographics in all of its major business centers. This diversity provides a number of benefits, including greater global access and balanced markets that tend to embrace startups without the valley effect that is prevalent in the U.S.
9. Direct Access to North America
Due to the North American Free Trade Agreement, Canada enjoys easy commercial access to both the U.S. and Mexico, and the U.S. and Canada are the largest trading partners in the entire world. Therefore, a business that chooses Canada over the U.S. doesn’t have to make any significant sacrifices to do so.
10. Quality of Life
Canada is among the most equitable countries in the world in which to live, and it has excellent education, literacy rates and income distribution. It’s also culturally diverse; these factors make it a very strong and stable environment for business.
Canada presents many strong opportunities for startups and businesses looking to expand or relocate their operations. In lieu of these advantages, is Canada an option for you? Are there other advantages important to you that aren’t listed here?