Prime Minister Mark Carney’s recent economic policy announcement marks a pivotal moment for Canada. The strategic shift from a model of “reliance” on specific trade relationships to one of “resilience” against global shocks is a profound and necessary reorientation of the nation’s economic philosophy. This new framework recognizes that in a turbulent world, true economic strength comes from a dynamic, adaptable, and innovative domestic base. And at the heart of this resilience lies Canada’s burgeoning startup ecosystem.

While the new policies offer a generally positive effect on Canadian startups, particularly through increased access to capital via BDC loans and the Strategic Response Fund, a critical piece of the puzzle is missing. To truly transform our economy, the government must move beyond broad strokes and develop a targeted, clear policy that specifically supports underrepresented and immigrant-led startups. This is not just a matter of equity; it’s an economic imperative. These entrepreneurs are not just creating businesses; they are building the future economic engine of Canada.

What This Matters

Funding is one aspect, this policy is focused at unlocking a powerful economic multiplier effect.

• Job Creation and Innovation: Startups are the primary creators of high-value jobs and catalytic innovation, often at a faster pace than traditional industries. They are the crucibles where new talent is forged and where jobs are created for that talent.
• Global Advantage: Immigrant-founded startups, in particular, bring invaluable global networks and a unique understanding of international markets, which can significantly fuel Canada’s export potential and attract foreign direct investment. They are already connected to the very global economies the new policy seeks to navigate with resilience.
• Future-Proofing the Economy: By embedding a startup-focused strategy into its policy, Canada can accelerate its transition toward a knowledge-based, climate-smart economy. This ensures our economy is not just resilient to current shocks but is also prepared for future challenges.

 

Recommendations for an Inclusive Startup Policy

To make the “resilience” framework a reality for all of Canada’s entrepreneurs, the government should consider the following actions:

• Strategic Response Fund: The government should allocate a dedicated stream within this fund specifically for underrepresented and immigrant-led startups. This ensures that the capital reaches those who can benefit most from it and who often face systemic barriers to traditional funding.
• Government Procurement: The “Buy Canadian” mandate holds immense potential, but its effectiveness depends on reforming cumbersome procurement processes. The government should add a system of “startup-first micro-contracts” and pilot funding streams that make it easier for smaller, newer companies to compete. This would provide a reliable domestic market for innovative products and services.
• Cabinet Portfolio Alignment: The report suggests aligning startup initiatives under the Minister for AI and Digital Innovation. This is a crucial step to ensure that policy is coherent, coordinated, and can respond quickly to the needs of the technology sector.
• Reducing Barriers to Scale: While the policy aims for resilience, we must also address domestic obstacles to growth. The “One Canadian Economy Act” should be used to actively reduce interprovincial trade barriers, enabling startups to seamlessly access a national market and scale their operations.
• Streamlining the Startup Visa Program: The government must address the dire challenges faced by international entrepreneurs under the Startup Visa (SUV) program. The current estimated processing time of 40-48 months is just insane! A backlog of over 44,000 files, potentially leading to an 11+ year waiting period. This paralyzes legitimate businesses, prevents them from bringing in much-needed capital, and stifles job creation. A rapid, transparent review and a dedicated task force are needed to clear this backlog and ensure that talented entrepreneurs can quickly contribute to the Canadian economy.

In essence, by explicitly integrating our most dynamic and diverse entrepreneurs into its industrial playbook, Canada can turn funding shocks into innovation surges. The government has laid the groundwork for a more resilient economy. Now is the time to ensure that all Canadians, especially those who have historically been on the sidelines, are at the forefront of building it.

End Notes:

Canada Startup Association is a not for profit organization that supports underrepresented and immigrant startups in Canada. With our international collaborations, we organize private sector led and privately funded trade delegations to provide our members a direct access to international markets.