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Early-stage entrepreneurial activity in 2020 had fallen sharply from its pre-pandemic high in the UK as the economy was essentially shut down for long periods due to COVID-19 This decline was due to fewer nascent entrepreneurs than normal – that is, individuals in the first three months of starting their new business venture Nevertheless, around two-thirds of working-age adults looking to set up a business within three years said the pandemic had influenced their decision to re-assess their future engagement with the labour market As in previous economic downturns it is the small business community that drives the recovery across all sectors of the economy. UK entrepreneurs once again stand ready to rise to the challenges and opportunities created by the Coronavirus pandemic and the economic fallout from Brexit, a new report says. The latest Global Entrepreneurship Team (GEM) UK report found that although around of half budding entrepreneurs said that the UK government had so far dealt effectively with the economic consequences of the pandemic, there must be improved programmes, financial support and advice to start-ups and scale-ups through different stages of the business life cycle. GEM is the world’s largest survey of entrepreneurship and is the only global research source that collects data on entrepreneurship directly from individual entrepreneurs. It measures various rates of entrepreneurship in 43 countries in 2020. GEM’s UK team – which is led by Professor Mark Hart of Aston University – compared attitudes, activity and aspirations in the UK, Germany and the United States as well as the four home nations of the UK. Access to finance remained one of the major obstacles to entrepreneurial activity in the UK. Enhanced tax benefits for entrepreneurs, such as tax breaks for start-ups and businesses in difficulty to reduce early exits and better tax incentives for recruitment, investment in managerial and digital practices and skills were also highlighted1. The report also called for more entrepreneurial education, especially at school age as well as improved technical education and improved links between the educational system and industry to boost growth post-COVID and post-Brexit. It found that the UK still lags behind many comparable economies in this respect. Mark Hart, professor of small business and entrepreneurship at Aston Business School and deputy director of the UK’s Enterprise Research Centre, said: “The GEM survey undertaken in the last few months of 2020 showed a sharp fall in the number of individuals in the early stages of setting up a new business compared to the pre-pandemic high in 2019. “This is hardly surprising, but the analysis has also shown that the entrepreneurial foundations of the economy and society are still strong and these will be crucial for the recovery after the pandemic and in dealing with the ongoing economic fallout from Brexit. “Those ethnic-minority communities that have borne the brunt of the pandemic in terms of infection, hospitalisation and sadly deaths demonstrated their resilience by maintaining their previous levels of early-stage entrepreneurial activity (TEA rate) which were significantly higher than for the non-ethnic minority population. “Clearly, the pandemic has had no damaging impact on the level of entrepreneurial activity by immigrants and ethnic-minorities although it has depressed it for life-long residents and the non-ethnic population. “There is undoubtedly an appetite for people to start their own businesses in the next three years and many report new opportunities because of the pandemic but they are delaying the actual decision to get the business operational.” The full GEM UK impact report, sponsored by NatWest, is available for download here.
Aston University researchers based in the College of Health and Life Sciences have been awarded a Knowledge Transfer Partnership (KTP) project by Innovate UK, to bring its academic and scientific expertise to assist Catalent in the development of its Zydis® technology, the leading orally disintegrating tablet (ODT). The Zydis ODT fast-dissolve formulation is a unique, freeze-dried oral solid dosage form that disperses almost instantly in the mouth with no water required. It helps delivering treatments to patients and consumers who have difficulty swallowing conventional pills, or where rapid onset of action is desirable. The aim of the KTP partnership is to develop and prove an accurate predictive decision-making tool to pre-determine accurate levels of absorption enhancer for each Zydis product, potentially facilitating faster pharmaceutical development, improving efficiency, and reducing time to market. A Knowledge Transfer Partnership (KTP) is a three-way collaboration between a business, an academic partner and a KTP Associate. The UK-wide programme helps businesses to improve their competitiveness and productivity through the better use of knowledge, technology and skills. Aston University is the leading KTP provider within the Midlands. Academic lead on the project is Professor Afzal Mohammed, who is also chair in Pharmacy in the College of Health & Life Sciences (HLS) and a member of the Aston Pharmaceutics Group (APG) at Aston University. Afzal said: “This is a great opportunity for us to share and translate our academic experience in cell based models, excipient and formulation characterisation to develop an evidence based predictive tool that has the potential to expedite product development at Catalent.” Ralph Gosden, head of Zydis product development at Catalan, added: "We are excited to be working with Aston University on this project. Their expertise in drug transportation, cell biology, data analysis and model cell line design, coupled with its world-class facilities means that together, we will be able to achieve significant improvements in efficiency, and accelerate new product development.” Professor Mohammed will be supported by other colleagues from the Aston Pharmaceutics Group, including, Dr Dan Kirby, who has experience in drug delivery and improving patient acceptability of dosage forms gained through original research; Dr Affiong Iyire who has research expertise in the formulation of drugs for pre-gastric absorption and innovative cell models; and Dr Raj Badhan, who is a pharmacokinetics expert with vast knowledge of in silico methods. The outcomes of the project will be integrated into Aston University’s curriculum through teaching case studies, thereby developing well equipped graduates.
The use of swear words declines by more than a quarter in the UK since the 1990s – new research
Aston University’s Dr Robbie Love compared the use of 16 of the most common swear words between 1994 and 2014 He found the amount of swearing has fallen by 27.6 per cent during the 13-year period The study also found that the f-word has overtaken 'bloody' as UK's most popular curse word Researchers from Aston University have found that the use of swear words in Britain has declined by more than a quarter since the 1990s. Dr Robbie Love, based in the College of Business and Social Sciences, looked at how swearing changed in casual British English conversation between 1994 and 2014. As part of the study, which is published in Text & Talk: An Interdisciplinary Journal of Language, Discourse & Communication Studies, Dr Love used two large bodies of transcriptions to analyse the use of language, including: The Spoken British National Corpus gathered in 1994 and the same corpus from 2014. Both texts include over 15 million words, although it was found that swear words accounted for less than one per cent. In total, the amount of swearing was found to have fallen by 27.6 per cent, from 1,822 words per million in 1994 to 1,320 words per million in 2014.The research findings also suggest that the f-word has overtaken 'bloody' as the most popular curse word in the UK. In the study, Dr Love compared the use of 16 of the nation's most common swear words, including p***, c*** and s**g, from the 1990s to the 2010s. He also found that trends in the type of swear words used have changed over the last few decades , with 'bloody' being the most common curse word in the 1990s and the f-word taking precedent in the 2010s. The analysis suggests that this is largely down to a big decline in the use of 'bloody',while the f-word has remained relatively steady over the years. It was also found to be the second most commonly used swear word in 1994, followed by s**t, p***, b****r and c**p. Other key findings of the study included: Over a twenty year period b****r had fallen from the fifth most common curse to the ninth, while b*****d dropped from seventh to 10th. The big climbers include s**t, from third to second, a**e, from eighth to sixth and d***, from tenth to seventh. T**t also rose from the 16th most common swear word in the 1990s to 13th by the 2010s. Dr Love then analysed demographics and discovered that, although swearing is more common in men than women, the difference between the genders has decreased notably from 2.33 times more frequent in men in 1994 to 1.68 times in 2014. Another change concerned how much people swear as they age. In both data sets, swearing is most common among people in their 20s, and then declines with age. However, the decline was less steep in the 2010s, suggesting that people continue swearing later in life more than they did in the 1990s. Dr Robbie Love, lecturer in English at Aston University, said: “This research reinforces the view that swearing plays a part in our conversational repertoire, performs useful functions in everyday life and is an everyday part of conversation for many people. “Despite this, it is relatively under-researched precisely because it is considered to be taboo. “Swearing performs many social functions including conveying abuse and humour, expressing emotion, creating social bonds, and constructing identity. “The strong social conditioning around swear words makes them more psychologically arousing and more memorable than other words, and something different happens in the brain when saying them compared to euphemistic equivalents, such as saying "f***" compared to ‘the f-word’.” You can read the full study, Text & Talk: An Interdisciplinary Journal of Language, Discourse & Communication Studies, HERE If you want to explore how the written and spoken word works in society, Aston University's innovative English language and literature degrees are for you. We emphasise practical applications, linking your studies to the real world through professionally relevant modules in areas such as Language and Literature in Education, The Language of the Law, Psychology of Language and Communication or Language at Work.
There’s billions of dollars flowing into Georgia – and with that economic development, comes good paying jobs. It’s getting a lot of attention and that means news coverage on local, state and national levels. Recently, media have been looking for expert perspective and opinion on the economic boom – and to help with their questions, Georgia Southern University’s Michael Toma is the go-to expert for reporters looking to break down the investments, the opportunities and the jobs that are coming with them. The SK Battery America plant is, appropriately, located in the city of Commerce, Georgia. The $1.6 billion project – expected to employ 2,000 – was finalized in early January 2019, but without investment from the state and local government, it might not have been built in Georgia. "They were looking at several other states, especially in the southeastern U.S.," said John Scott, director of economic development for Jackson County. "When we were working with them the final two sites were between here and somewhere in Tennessee." … According to Michael Toma, Ph.D., Fuller E. Callaway Professor of Economics at Georgia Southern University, a new project creating 1,000 jobs can have a huge impact, while 500 jobs is a significant project for medium-sized cities. How good the jobs are is a matter of debate, although state and local officials emphasize that they look for jobs that pay well. July 27 – USA Today/Savannah Morning News If you’re a reporter looking to know more about why business is booming in Georgia – then let us help. Michael Toma, Ph.D., is Georgia Southern University's Fuller E. Callaway professor of economics and is available to speak with media about this topic – simply click on his icon to arrange an interview today.
Podcast: 3D printing’s vital solution to medical problem caused by COVID-19
"They were looking to solve a problem and I was able to use my additive manufacturing knowledge to help them out, and the result of that was that we developed a new technology and span a company out of it." Dr Mark Prince Senior Lecturer in Mechanical Engineering Aston University New device created in Aston University lecturer's home during coronavirus lockdown Aston Business School expert explains how 3D printers are already used to make hearing aids, dental crowns and hips ‘Imagination is the only limit’ for additive manufacturing’s future, according to Dr Ahmad Beltagui A senior lecturer at Aston University is helping ear, nose and throat (ENT) clinics around the world by using the hi-tech ingenuity of 3D printing. Dr Mark Prince used 3D printing to prototype and produce a valve for a mask so that ENT surgeons could continue to examine and treat patients without fear of spreading the virus. Dr Prince, a senior lecturer in mechanical engineering at Aston University, was talking about his experiences in the latest episode of the 'Aston means business' podcast, presented by journalist Steve Dyson. The podcast also features Dr Ahmad Beltagui from Aston Business School, who talks about the wider benefits, some downsides and future potential of 3D printing in successfully disrupting traditional manufacturing. Dr Prince said his interest in additive manufacturing, or 3D printing, peaked after meeting two consultant ENT surgeons in the West Midlands. He said: "They were looking to solve a problem and I was able to use my additive manufacturing knowledge to help them out, and the result of that was that we developed a new technology and span a company out of it. "The company is Endoscope-i Ltd, founded in 2012 and now with an annual turnover of £200,000. The idea was simple: can we get medical endoscopic images of the ears and throat using a smartphone and we came up with a technique to do that." He said that, traditionally, he would have used large, expensive equipment to prototype the systems and new products. However, that wasn't possible with most of the university closed down at the height of the pandemic last year. He, therefore, had to look at other technologies that were safe to use in the home without breaking lockdown restrictions. Dr Prince explained: "When we are looking at diseases or concerns of the throat and nose we often stick an endoscope up the nose and down the throat, but of course you can't do that through a mask. "One of the founding members, Mr Ajith George, suggested that we could put a valve in the mask that allowed an endoscope to pass through it and allow the procedure to go ahead without breaking containment." "Work on the device started in mid-March 2020 and was ready for free supply to the NHS in November. Dr Prince added: "What that has allowed the NHS to do is any ENT clinic was able to fit it to a mask, put the mask on the patient, and carry on with an endoscopy procedure without all of the concerns of the pandemic." Meanwhile, Dr Ahmad Beltagui, a lecturer in operations and information management at Aston Business School, said you could get 3D printers from as little as £200 all the way up to expensive versions working with "exotic materials" like titanium. He said there were four main benefits to manufacturers: "Compared to traditional manufacturing methods you can produce shapes that are harder to produce; you can produce things in very small volumes; you can innovate faster and produce lots of prototypes, and you can produce things nearer to where they are required so you don't have to produce in a factory in one place and transport somewhere else." Dr Beltagui said: "The COVID-19 pandemic saw 3D printers used in homes to produce equipment such as cheap face visors for their local hospitals. The great thing about 3D printing is anyone can produce anything they want. "That's also the biggest risk – there is no control over what people produce or how safely they produce it. "At the beginning of the pandemic, someone in Italy found that they could produce some spare parts to keep the ventilators in their local hospital going. But then a few days later the manufacturer of those ventilators was considering whether or not it should take legal action." However, he said the printing machines had gradually become more reliable and there was a better level of quality, while the cost was coming down. Dr Beltagui added: "As to the future, the only limit is your imagination."
Rishi Sunak kickstarts Help to Grow scheme at Aston Business School
"It was a pleasure to host the chancellor at Aston Business School today. As a small business leader you have to know about all the key business functions and how to optimise them to drive high performance in your business." Paula Whitehouse, Aston Business School Paula Whitehouse (L) & Rishi Sunak (R) The Chancellor of the Exchequer met with Aston University’s deputy vice-chancellor engagement and associate dean enterprise of the College of Business and Social Sciences to launch Help to Grow: Management The scheme will support senior managers of small and medium-sized businesses to boost performance, resilience, and long-term growth The 12-week programme is 90% funded by the Government and participants can complete it alongside full-time work. The Chancellor has called on the leaders of small and medium-sized businesses to sign up to a new programme designed to hone their expertise as he attended one of the first courses in the UK today (August 2). Rishi Sunak joined a class taking part in the government-funded Help to Grow: Management scheme at Aston Business School, Aston University, alongside small business owners, to see first-hand how it is giving them the tools they need to innovate, grow and help drive the recovery from the pandemic. The Chancellor delivered a talk to participants at Aston Business School on the critical role small businesses can play in boosting UK productivity. He then took part in a group activity and led a discussion about their own business models and opportunities for growth. The scheme, which was announced at the March Budget and opened for applications in May, will give 30,000 SMEs access to world-class business expertise on everything from financial management to marketing and is a pivotal part of the government’s Plan for Jobs. Rishi Sunak, the chancellor of the exchequer, said: “Small businesses are key to our innovation and economy and will therefore be an essential part to our recovery from the pandemic, which is why we are levelling up their skills through the Help to Grow schemes. “I want to bring some of the best bits of management training from around the world to help boost productivity here in the UK. “Help to Grow: Management will ensure our brilliant SMEs seize every opportunity to grow, fuelling our Plan for Jobs by boosting productivity in all corners of the UK.” Experts in small business and entrepreneurship from Aston University have played a significant role in developing the programme. Paula Whitehouse, curriculum director for Help to Grow: Management and associate dean enterprise of the College of Business and Social Sciences, said: "It was a pleasure to host the chancellor at Aston Business School today. As a small business leader you have to know about all the key business functions and how to optimise them to drive high performance in your business. “Help to Grow: Management will combine this essential business education with the creation of a like-minded business network and support for the practical application of the learning to ensure businesses get immediate results. “I am excited to be working with Small Business Charter business school colleagues all over the country to roll out the Help to Grow: Management curriculum and ultimately to be introducing many more business leaders from the West Midlands into Aston's vibrant entrepreneurial community." Mark Hart, professor of small business and entrepreneurship at Aston University and associate director of Aston Centre for Growth, said: “The launch of the Government’s Help to Grow: Management programme for SMEs is a welcome addition at a critical time to the range of support available to small business leaders across the UK. “Small firms will drive the recovery as they have always done in previous economic downturns and equipping their leaders with the leadership and management skills from the UK’s leading business schools will ensure that they will build even more resilient, innovative and sustainable businesses capable of responding to the emerging opportunities in their chosen markets. “This is a practical, intensive 12-week programme designed by some of our top academics to provide the skills required to improve the performance and productivity of small firms across all sectors of the economy”. Mark Hart (L) & Rishi Sunak (R) take part in a class at Aston Business School
Brexit: UK services are losing out to EU rivals – but Asia could be big winner
"Seven months after Britain’s exit from the EU, the chilly effects on UK trade are being felt. Total exports of UK goods and services were down by 13% (£36 billion) and imports down 22% (£66 billion) for January to May 2021 compared to the same period in 2019." Professor Jun Du, Aston Business School Singapore looks like one of the big winners from Brexit. joyfull In a separate new ONS report into UK services, exports and imports fell 12% and 24% in the first quarter of 2021 compared to the same period in 2019. To some extent this is due to the pandemic, but the decline with EU countries was more severe (exports down 15% and imports by 39%), which suggests Brexit was relevant too. The difference between services exports to EU and non-EU countries was particularly marked in sectors like construction (-43% vs +24%), maintenance and repair (-62% vs +11%), and manufacturing services (-40% vs -12%). It seems to confirm that the UK’s services offering has been made less competitive by the EU-UK Trade and Cooperation Agreement hardly covering such business. This has left EU members free to decide whether to allow different UK providers into their markets. But as we shall see, other services exporting countries outside the EU may also benefit as a result. In our recent paper, Ireland looked like the big winner. It has probably benefited from firms relocating and business being re-routed from the UK, not to mention low corporation tax and a young well-educated workforce. Between 2016 and 2019, Ireland’s services exports rose 24% (that’s €144 billion or £123 billion), driven by financial services, IT and transport. Speculation still abounds about which other EU cities will benefit in the medium term. Amsterdam surpassed London as Europe’s largest share-trading centre in January by absorbing much trade in euro-denominated assets, though London has been back on top recently. Other potential winners include Frankfurt (banking), Luxembourg (banking and asset management) and Paris (financial, professional and business services). Even a less serious contender like Berlin can attract tech talents thanks to its culture clusters and affordability. On the other hand, most financial traders have so far remained in London. The city is still strong in hosting stock market flotations and other forms of capital raising. And the flow of financial jobs out of London has been a fraction of what remainers predicted. A four-year regulatory transition period for areas like data protection and electronic trade will undoubtedly be helping. London vs EU rivals is only half the story. James Padolsey/Unsplash, CC BY-SA Yet all this misses a bigger picture, namely that Europe’s ability to provide services may have been weakened overall. Imagine a group of US investors wants to invest £1 billion in European shares and other financial assets. In the past it might have set up a fund in London, making use of the city’s network of lawyers, accountants, bankers and other finance professionals, while filtering some of the work to specialists in, say, Paris and Frankfurt for issues related to France and Germany. But now Brexit means the fund can’t invest in certain EU securities from London. The investors would have to set up a second fund in, say, Dublin to get exposure to all the EU assets they want. The additional expense and time involved makes them decide it will be more lucrative to set up an Asia-focused fund in Singapore instead. When you multiply this effect across every sector, it is potentially huge. Certainly some investors will decide to either switch attention from the UK to EU countries, or to live with the extra cost of doing business across both the UK and EU. But others are deciding that an opportunity somewhere else in the world now looks more attractive. The danger is that this adds up to a global shift in economic weight over time. In fact, we could be seeing signs of this already. Winners and losers In follow-on research that we have yet to publish, we have been analysing the services exports of the major service providers in Europe and globally, using trade data jointly collected by the World Trade Organization (WTO) and the Organisation for Economic Cooperation and Development (OECD). The data shows the UK was and is the biggest services exporter in Europe and second only to the US worldwide, but appears to have been losing ground since Brexit. Ireland and the Netherlands are the major growth stories in Europe, while China, India and Singapore are leading the way elsewhere. Services exports by country, 2019 vs 2015 Trends in services exports. Left: 2015 data in solid coloured bars; 2019 change in yellow markers. Right: Green bars represent accelerating service growth; red bars represent decelerating growth. BaTIS The UK’s services growth trend fell 11% in the 2016-2019 period compared to 2010-15. This backs up our recent published research finding that the UK’s global share of exported services fell from 8.9% in 2005 to 7% in 2019. Meanwhile, France, Spain, Italy and Belgium’s growth has also been declining, while Germany, the Netherlands, Switzerland, Luxembourg, Austria and also the US were static. Ireland was the fastest growing services exporter among all, but Singapore and India gained momentum too. Strikingly, we see increasing growth in Asia between 2016 and 2019 in sectors like travel, financial, IT and creative services. This includes extraordinary growth in Singapore in finance, business, insurance and pension provision, and also in China in numerous segments. It looks like nothing short of a boom. Shanghai has been on the up and up. Krzystsztof Kotkowicz, CC BY-SA This may partly reflect the industrial transformation taking place in the Asian developing world from manufacturing to services. It may also capture a long-term shift of services centres from the west to the east – a reshuffle on a truly global scale. But at the same time, it’s evidence that Brexit has weakened the UK as the European centre for services. Yes, business shifted to Ireland (and Luxembourg) to some extent, but that could be hiding a wider collective setback. The question for the years ahead, for the UK and its European services peers, is whether they can come up with arrangements that help maintain their collective strengths – and to what extent they can exploit opportunities elsewhere, particularly on developing countries, where US services providers have traditionally been far ahead. This article was co-written by Professor Jun Du and Dr Oleksandr Shepotylo.
Canadian finances 101: What you should know as a newcomer
Canada’s financial ecosystem is made up of banks, credit unions, trusts, and other financial and insurance companies and it is considered to be one of the most sound and safest in the world. According to the Global Competitiveness Report 2019, published by the World Economic Forum, Canada ranked 9th globally for its financial system, showcasing stability and reliability. As you plan your move, familiarizing yourself with the Canadian banking and financial landscape can help provide context to key tasks like opening bank accounts, building credit history, borrowing money, and filing taxes. In this article: Types of financial institutions in Canada Getting started with taxes: The Canada Revenue Agency (CRA) Canada: A credit-based economy Banking, investments, and money transfers What are the types of financial institutions in Canada? Financial institutions in Canada can be classified into three main categories: 1. Banking institutions These are places where you can deposit, withdraw and borrow money. Examples of such institutions include banks, online-only banks, credit unions, trust companies, mortgage companies, etc. Banks A bank is licensed to receive deposits and make loans. Most banks are managed by the national government. The five largest banks in Canada are often referred to as the “big five” in banking. They are: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC). Sometimes, you may hear the term “big six,” including the National Bank of Canada – although, note that its operations are primarily focused in the provinces of Quebec and New Brunswick. Digital-only banks In addition to these banks, there are a few digital-only banks, such as Tangerine (a subsidiary of Scotiabank), Simplii Financial (a subsidiary of CIBC), and EQ Bank. They provide all services online only and do not have any physical branches. Credit unions A credit union is a smaller financial institution that is owned by its members, who are also typically account holders. They operate under provincial legislation and regulations and provide similar services as banks. The main difference between a credit union and a bank is their structure; credit unions are owned by anyone with money in the credit union. The operations are supervised by a democratically elected board of directors made up of local community members. Due to their scale of operations, note that credit unions may have fewer branches and ATMs than a big bank would. Tip: As a newcomer to Canada, you can choose any financial institution of your choice. However, it is helpful to know that the big five banks (like RBC) have newcomer banking packages that specifically cater to permanent residents and international students and are thus better positioned to assist you in your unique situation. Trust companies Trust companies are legal entities similar to banks that act as an agent (on behalf of a person or business) for the purpose of administration, management and the eventual transfer of assets to a party. Mortgage companies Money lending entities such as mortgage finance companies (MFCs) and mortgage investment corporations (MICs) provide real estate financing. MFCs are non-depository financial institutions that underwrite and administer mortgages sourced through brokers. Their lending is funded mainly through securitization or direct sales to third parties, primarily the big six banks. MICs and other private investors typically deal in uninsured, customized mortgage products that are not available through traditional channels. These products include non-prime loans, second mortgages and very short-term mortgages. Key financial authority: The Bank of Canada The Bank of Canada is the nation’s central bank. Its principal role is to promote the economic and financial welfare of Canada. The Bank influences the supply of money circulating in the economy, using its monetary policy framework to keep inflation low and stable. It promotes safe, sound and efficient financial systems, within Canada and internationally, and conducts transactions in financial markets in support of these objectives. Additionally, the Bank of Canada also designs, issues and distributes Canada’s bank notes and acts as the “fiscal agent” for the government of Canada, managing its public debt programs and foreign exchange reserves. It also sets the interest rates in Canada. 2. Insurance companies These are entities that sell insurance to cover the risk of loss in various situations, caused due to a variety of factors. They include homeowner or renter’s insurance, health insurance, car insurance, life insurance, and more. They compensate you for any loss that’s covered by your insurance policy. Once you purchase a specific type of insurance, you are required to make periodic payments, called premiums, to the insurance company to avail of the agreed-upon coverage. 3. Investment companies These are organizations that focus on investing, administering or managing funds or money on behalf of other persons. Examples of such companies are investment banks, hedge funds, underwriters, and brokerage firms. Note: There might be an overlap in the services provided by financial institutions. For instance, a leading bank like RBC offers banking services, mortgages, a wide variety of insurance options, investment solutions, and more. Tip: Beware of predatory lenders offering payday, instalment, and other types of loans with very high interest rates. These lenders often prey upon people who need cash quickly and who have run out of all other options. They usually have exorbitant interest rates, confusing and misleading representations, and a lack of transparency and documentation. Therefore, always double-check money lending claims that seem too good to be true. Note that payday loans are provincially regulated while instalment loans are unregulated. What this means is – while interest rates cannot exceed 60 per cent, lenders are effectively free to change terms and add fees and other charges almost at will. Getting started with taxes: The Canada Revenue Agency (CRA) The CRA administers tax laws for the Government of Canada and for most provinces and territories. It administers various social and economic benefit and incentive programs delivered through the tax system. The CRA website is the go-to place for everything related to your taxes: filing annual tax returns, checking receipt of Government benefits and subsidies, viewing tax documents, etc. Important: To register for CRA’s “My Account,” you must have filed a tax return for the current or a previous year. Download Arrive’s free tax guide for newcomers for insights on how to file your taxes and to make sure you’re prepared to manage the expectations that come with paying taxes in Canada. Note: Beware of a long-running CRA scam with callers posing as representatives of the CRA. The CRA will never use threatening language nor ask for information about your passport, health card, driver’s license, or demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon. Canada: A credit-based economy North American countries such as the U.S. and Canada are known to be credit-based economies. This essentially means that most people use their credit cards (instead of debit cards or using cash) to make purchases and then repay the entire amount owed either at the end of their credit card billing cycle or in installments. You will need to build your own credit history, since this is essential to many aspects of life in Canada. Once you receive your first credit card, start by making payments for small expenses such as phone bills or groceries, and be sure you pay the balance in full by the end of the billing cycle. Tip: Keep in mind that credit cards have limits and do not offer free money. They can carry very high-interest rates, so your balance should be managed and paid down promptly – this will help you maintain a good credit rating. A credit score is a way for financial institutions to measure your ability to repay loans. Some scenarios where you may be asked for a credit report are while renting accommodation, applying to certain jobs, and obtaining mortgages or other loans from the bank. Additional resources Download Arrive’s free Credit guide to learn more about credit cards, credit scores, and credit ratings in Canada. For tips on staying debt-free and building your credit history in Canada, read How to build a good credit score from scratch as a newcomer. Banking, investments, and money transfers in Canada Banking Like many other countries, in Canada, you can conduct all your banking and money transfer transactions by walking into a branch or online, through internet banking. See How to open a bank account in Canada as a newcomer to know the process of opening a newcomer account. The article will also provide tips and resources to help you learn more about credit and direct deposits. Investments There are many financial products available to save and invest your money in Canada. They can be broadly classified into savings accounts, registered savings plans and investment products. Depending on your goals and your appetite for risk, you can choose one or a combination of several of these. Read Savings and investments for newcomers in Canada for deeper insights into all available investment products. Money transfers For domestic peer-to-peer payments (think: sending money to a friend, relative, co-worker, or acquaintance in Canada), there are a couple of ways to send and receive money online: Interac and Paypal. Interac is a bank-based tool, while Paypal is a non-bank, third party service. Among these, Interac e-transfers are the most popular and widely used form of peer-to-peer payments in Canada. You can send money overseas through online or mobile banking, by telephone, by email, or in-person. Banks like RBC have a simplified, affordable, and convenient process for international money transfer through online banking. If you have the recipient’s banking information handy, all it takes is a few clicks! Some popular options for international remittances are: Banks Credit unions Money transfer operators like Western Union, MoneyGram, WorldRemit, etc. Peer-to-peer transfer providers such as Transferwise (now, Wise), CurrencyFair, Paypal, etc. Currency exchange businesses When sending money overseas, the Canadian federal government tracks large sums (over $10,000 CAD) through Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to prevent money-laundering, terrorism funding, and related crimes. Understanding financial products and regulatory agencies in Canada can make you feel overwhelmed. Start with the basics so you can build awareness and a strong foundation to manage your finances in Canada. Original article located here, published by Arrive.
How to build a good credit score from scratch as a newcomer in Canada
Having a credit rating or a credit score is essential for life in Canada. A good credit score can ensure you qualify for better interest rates on mortgages and other loans down the line. To get started with building your credit history, having and using a credit card is essential. In this article, we will outline what a credit score is, share valuable tips to help you build a good credit history as a newcomer in Canada, and provide information on how to check your credit score and order a credit report. What is a credit score? When you borrow money from a bank (or lender), certain information is shared with a credit bureau. Over time, additional information, such as whether you’ve paid your bills on time, whether you’ve missed payments, and how much debt you have outstanding, will get shared with the credit bureau. These factors go into calculating your credit score – a three-digit number that indicates to lenders your capacity to repay a loan – as reported on your credit rating report. Credit scores range from – 300: The lowest score or the starting point; to 750: The magic middle number, which will likely qualify you for a standard loan; all the way up to 900: The highest score awarded for excellent credit history. The higher your score, the lower the risk is to the bank, and vice versa. A score under 750 will likely make it more difficult to acquire loans or credit cards – you may receive a lower credit limit and get charged higher interest rates. For newcomers to Canada, however, most banks offer a credit card when you open a newcomer account with them – this usually suffices to get you started on your journey of building a good credit history in Canada. Learn more about credit scores in Canada See Credit in Canada: What every newcomer needs to know for information on the different types of credit in Canada. Get insights on the factors that affect your credit score, understand why building a good credit history is important, and dive into how a credit score is calculated. Who can see and use your credit report? Credit bureaus follow rules that define who can see your credit report and how they can use it. Those allowed to see your credit report include: banks, credit unions and other financial institutions, credit card companies, car leasing companies, retailers, mobile phone companies, insurance companies, governments, employers, and landlords. These businesses or individuals use your credit report to help them inform lending decisions about you. Generally, you need to give permission or your consent, for a business or individual to access your credit report. In the provinces of Nova Scotia, Prince Edward Island and Saskatchewan, a business or an individual only needs to tell you (verbally) that they are checking your credit report. Other provinces require they obtain your written consent to check your credit report. Some provincial laws allow government representatives such as judges and the police to see parts of your credit report without your consent. 5 tips to build a good credit score 1. Make payments on time and pay off your balance in full each month When lenders review your credit report and request to see your credit score, they want to know how reliable you are with paying your bills – because usually, past payment performance is considered a good predictor of future performance. To build a good credit history, it’s important to make all your payments on time. While your credit card bill will always indicate the minimum amount owed, as someone just getting started with building credit in Canada, it’s best to pay off the balance in full each billing cycle. Paying the entire balance each month also helps you avoid racking up credit card debt. 2. Use credit wisely Always stay within your credit limit. If you have a credit card with a $2,000 CAD limit, try to not go over that limit. You should spend only what you can afford to pay back. Spending more than the authorized amount on a credit card can lower your credit score. As a rule of thumb, try to use less than 35 per cent of your total credit in each billing cycle. This includes all your credit products such as: line of credit, credit card from Canadian banks/lenders, loans, etc. For example, if you have a credit card with a $2,000 CAD limit and a $5,000 CAD line of credit from a bank, you should limit your total spending to approximately $2,450 CAD (35 per cent of 7,000) or less, while also maintaining the 35 per cent rule (in this case, $700 CAD) specifically for your credit card. Tip: Start small – use your credit card for groceries, monthly utility payments, phone bills, etc. Over time, this will help you build a strong credit history. If you max out your credit limit each month, lenders perceive you to be a greater risk. This holds true even if you pay your balance in full by the due date. 3. Limit your number of credit applications and/or credit checks As you settle in Canada, it is normal and expected that you’ll apply for credit from time to time. A lender or other organization offering credit-based products may ask to “check your credit” or “pull your report”. When they do so, they are asking to access your credit report at the credit bureau. This results in an inquiry in your credit report. Tip: To build a good credit history faster, it is recommended that newcomers to Canada start off with a single credit card (avoid holding multiple credit cards) and keep paying the balance in full. There are two types of credit checks: hard hits and soft hits. Hard hits: These are credit checks that will appear in your credit report and can impact your credit score. Anyone who views your credit report will see these inquiries. Examples include an application for a credit card or mortgage, some rental applications, and some employment applications. If there are too many (hard) credit checks in your credit report, lenders may think that you’re urgently seeking credit and/or trying to live beyond your means. Soft hits: These are credit checks that appear in your credit report but only you can see them. These checks do not affect your credit score in any way. Examples include requesting your own credit report or businesses asking for your credit score to update their records about an existing account you have with them. To control the number of credit checks in your report: Limit the number of times you apply for credit; When shopping around for a car or a mortgage, get your quotes from different lenders within a two-week period. Your inquiries will be combined and treated as a single inquiry for your credit score; Apply for credit only when you really need it. 4. Report any inaccuracies on your credit report Once you get your report, check for: Errors in credit card and loan accounts, such as a payment you made on time that is shown as late – this could impact your credit score negatively; Mistakes in your personal information, such as a wrong mailing address or incorrect date of birth; Accounts listed that you never opened, which could be a sign of identity theft; Negative information about your accounts that is still listed after the maximum number of years it’s allowed to stay on your report. Any inconsistencies or incidents of fraud should be reported to the respective credit bureaus without any delay and get it corrected. Monitoring your credit on a regular basis can help you spot inaccuracies before they impact your credit rating. Note: A credit bureau can’t change accurate information related to a credit account on your report. For example, if you missed payments on a credit card, paying the debt in full or closing the account won’t remove the negative history. 5. Use different types of credit: card, loan, line of credit The number of credit products you have (such as a credit card, line of credit, loans, etc.) affects your credit score. For newcomers to Canada, it is recommended to start off with a single credit card and gradually apply for other credit products at a later stage. As you become more established in Canada, diversifying your credit and having a mix of credit products may improve your credit score. However, make sure you can pay back any money you borrow, otherwise, you could end up hurting your score by taking on too much debt. How to check your credit score It takes at least a few weeks to a month for newcomers to receive their first Canadian credit card and a few additional months of credit transactions to generate a credit history. You can check your credit score in the following ways: 1. Through credit bureaus: EQUIFAX and TransUnion are the two major credit rating organizations in Canada, and you can choose either one to get your credit report. Detailed instructions to obtain the report are available on the respective websites. Your credit score on each credit bureau may slightly differ as each organization may consider different factors while calculating your credit score. Equifax refers to your credit report as “credit file disclosure” while TransUnion refers to it as “consumer disclosure”. Remember: Ordering your own credit report has no effect on your credit score. 2. Through select banks: If you have an account with the Royal Bank of Canada (RBC), you can view your credit score for free, anytime, through online banking. 3. Through third-party companies: Some companies offer to provide your credit score for free. Others may ask you to sign up for a paid service to see your score. Make sure you do your research before providing a company with your information. Carefully read the terms of use and privacy policy to know how your personal information will be used and stored. For example, find out if your information will be sold to a third party. This could result in you receiving unexpected offers for products and services. Beware of fraudsters who offer free credit scores in an attempt to get you to share your personal and financial information. Tips: Consider requesting your report from one bureau/company, then wait six months before you order from the other organization. By spacing out your requests, you may be able to detect problems sooner. Always check to see if a website is secured before providing any of your personal information. A secured website will start with “https” instead of “http.” How to order a credit report in Canada You can get a physical or a virtual copy of your credit report. A physical copy may take some time to be delivered to you while a virtual copy can be obtained immediately. You usually need to pay a fee when you order your credit score online from the two credit bureaus: TransUnion and Equifax. Tip: TransUnion allows you to order your credit report online once a month for free. Note: A free credit report is only available as a physical copy and cannot be ordered online; separate processes exist for both Equifax and TransUnion. You must place your order by phone, mail or fax. How long does information stay on your credit report? Positive information in your credit report stays indefinitely, from the time the report was created. Negative information (that affects your credit score) such as late payments or defaults generally stays on your credit report for six years. However, some information may remain for a shorter or longer period of time. Learn more about the timelines for specific cases on the Financial Consumer Agency of Canada website. Credit is essential to life in Canada and building a good credit history takes time, so, be patient. Being aware of factors that affect your credit rating can help you make better financial choices. Original article located here, published by Arrive.
Working while studying in Canada: What you need to know
Working during your studies in Canada can be a great way for international students to gain experience, make new connections in Canada, and earn extra money to pay the bills (or treat yourself to something special!). However, there are some restrictions on who can work while studying in Canada and what types of work they can do. Here’s what you need to know before you start your job search. Who can work while studying in Canada It’s important to make sure you qualify to work while studying in Canada before starting a job because, if you do so without qualifying, you could be asked to leave Canada. Your study permit will include information about whether you’re able to work on- or off-campus. International students can work on-campus without a work permit if they meet all of these requirements. (Note that you must stop working on campus the exact day your full-time study ends.) 1. You are a full-time post-secondary student at either: a public post-secondary school, a private college-level school in Quebec that’s at least 50 per cent funded by government grants, or a Canadian private school that can legally award degrees under provincial law. 2. You have a valid study permit. 3. You have a Social Insurance Number (SIN) International students can work off-campus without a work permit if they meet all the following requirements. (Note that you can only start work in Canada once your study program officially begins.) You’re a full-time student at a Designated Learning Institution (DLI) You’re enrolled in either a post-secondary professional, vocational, or professional training program or a secondary-level vocational training program (Quebec only) You’re in a study program that’s at least six months long and leads to a degree, diploma, or certificate You’ve already started studying You have a Social Insurance Number (SIN) If you’re a part-time student, you must meet all of the above requirements and only be studying part-time because you’re in the last semester of your program and don’t need a full course load to complete it. Types of work permitted On-campus work On-campus work means any jobs located in the buildings on your school campus. If your school has more than one campus, you can normally only work on the campus you study at. You can, however, work at other locations if you’re a teaching or research assistant, or if your work is related to a research grant. An on-campus employer can be your school, a faculty member, a student organization, a private contractor that provides on-site services, or even yourself if you run a business that’s physically located on campus. There is no limit to the number of hours you can work on campus. You can learn more about working on-campus here. Off-campus work If you meet all of the requirements for off-campus work, you may work up to 20 hours a week during regular school terms/semesters. During school breaks, such as winter or summer holidays, you’re free to work overtime or take two part-time jobs that add up to a higher than usual number of hours. Note you have to be a full-time student both before and after a break to qualify. This means the summer breaks before and after your study term are not included. You can find more information about off-campus work here. Internships and co-op placements Some study programs include work experience as part of their curriculum. If this applies to your program, you can apply for a co-op or intern work permit as long as you meet these requirements: You have a valid study permit Work is required to complete your program of study in Canada You have a letter from your school that confirms all students in your program need to complete work placements to earn their degree Your co-op or internship makes up less than 50 per cent or less of your study program During COVID, the Canadian government has made some exceptions for remote co-ops and internships. You can learn more about these here. Tips for working while studying in Canada Plan your schedule well. Between work and school, it can be easy to overcommit yourself– especially in your first year of study. It may be best to give yourself some time to adjust to your new schedule before seeking out additional work. Look for opportunities aligned with your field of study or ones that allow you to develop new skills (such as improving your English or French!). Jobs can have more benefits than just making money. Take this opportunity to learn outside the classroom and even make some valuable connections in your field. Consider future employment prospects with your employer. Canadian companies often offer full-time jobs to former interns or employees they’ve already worked with on a part-time basis. Use your co-op or part-time gig as a chance to get your foot in the door. Network in the workplace and ask your manager to give you a referral on LinkedIn to show future employers you’re a valuable asset to their team. In Canada, many positions are filled through recruiters networks, so building your network will be key to hearing about job opportunities. Take this opportunity to meet others in your field. Even if they don’t end up hiring you down the road, they may know someone else looking to fill a position. Be proactive. Don’t be afraid to ask your manager for additional opportunities or express your interest in working on a particular project. If you don’t ask, you don’t get! Ask for help when you need it. Canadian companies tend to be very team-oriented and encourage employees to ask for help when they need it. Asking a colleague or manager for help can be a learning and networking opportunity. Working while studying in Canada is a great way to make the most of your study permit. Finding the right job, internship, or co-op placement gives you an opportunity to learn new skills, make valuable connections, and further define your future career goals. Get access to more career resources and tips for international students by downloading the Arrive app. Original full article located here, published with edits by Arrive.