Business Viability Under the Start-Up Visa Work Permit (R205(a))

Business Viability Under the Start-Up Visa Work Permit (R205(a))

I. Where Business Viability Appears in the Program Delivery Instructions

When assessing a Start-Up Visa open work permit under administrative code A77 and paragraph R205(a), officers must determine whether the applicant’s work will create or maintain significant economic, social, or cultural benefits.

As part of this analysis, the PDIs expressly instruct officers to examine whether the proposed business is viable. The instructions identify several guiding questions, including:

1. Has the applicant specified in detail how they will market their business?
2. How will customers be attracted or services used?
3. Will the business compete with existing Canadian businesses?
4. Will it negatively affect existing businesses?
5. Does the applicant possess the language ability, background, or skills necessary to operate the business?

These are not optional considerations. They form part of the structured analytical path officers are expected to follow.

II. Marketing Strategy – What Officers Expect to See

The PDIs specifically ask whether the applicant has “specified in detail how they will market their business”

A compliant business plan should therefore include:

1. A defined marketing model (e.g., digital acquisition, referral programs, enterprise partnerships)
2. Identified marketing channels (SEO, paid campaigns, direct outreach, platform integration, etc.)
3. Defined key performance indicators (KPIs)
4. Budget allocation for marketing activities
5. A staged rollout strategy

A general statement that the business will “use social media” or “operate in a growing industry” is insufficient. Officers are instructed to distinguish between a specific operational plan and a generic industry report.

Where a detailed marketing plan exists, it must be logically connected to customer acquisition, revenue projections, and business growth.

III. Customer Attraction Is Not the Same as Industry Growth

The PDIs explicitly caution that “simply entering a specific growth industry does not ensure viability”

This distinction is critical.

Applicants must demonstrate:

1. A clearly defined target market
2. Identified customer demographics
3. Evidence of how customers will discover and adopt the product or service
4. A phased acquisition model (e.g., MVP → early adopters → scaling strategy)
5. A measurable growth pathway

Officers are instructed to determine how customers will actually use the service — not whether the broader sector is expanding.

A viable business plan connects customer behavior, adoption strategy, and financial projections into a coherent operational model.

IV. Competition and Market Impact

The PDIs also direct officers to consider whether:

1. The business will compete with existing Canadian businesses; and
2. The existence of the new business will negatively affect existing enterprises 

This means a business plan should include:

Identification of Canadian competitors

1. Distinction between direct and indirect competitors
2. Clear articulation of competitive advantages
3. Innovation or differentiation factors
4. Market gap analysis

Importantly, competition alone is not disqualifying. However, the applicant must demonstrate how the business introduces innovation, market expansion, or efficiency rather than mere duplication.

V. Founder Capacity and Operational Readiness

Viability is not assessed in isolation from the applicant.

The PDIs instruct officers to examine:

1. The applicant’s language ability
2. Education and professional background
3. Experience relevant to the business
4. Knowledge of the Canadian market 

In addition, under paragraph R200(3)(a), officers must be satisfied that the applicant will be able to perform the work sought.

A viable business model supported by an applicant lacking operational capacity may still result in refusal.

Accordingly, applications should include:

1. Detailed CV
2. Evidence of prior entrepreneurial or industry experience
3. Explanation of the applicant’s specific role in the venture
4. Advisory board or executive support structure (if applicable)

The business plan and the founder’s profile must reinforce one another.

VI. The Importance of a Traceable Analytical Path

The refusal section of the PDIs emphasizes that officers must clearly document their reasons and summarize the areas of the business plan they are not satisfied with.

A decision is considered reasonable only when it allows a reviewing court to trace the path of reasoning from evidence to conclusion.

Recent Federal Court jurisprudence has reiterated that where applicants provide a detailed business plan addressing marketing, customer acquisition, innovation, and growth strategy, officers must meaningfully engage with those elements when assessing viability. Conclusory statements that a business is “not viable” without engaging the structured evidence may not withstand judicial scrutiny.

For applicants, this has an important implication: The business plan should be drafted in a way that makes the officer’s analytical path clear and difficult to ignore!!!

Conclusion

Business viability under the Start-Up Visa open work permit is not inferred from enthusiasm, industry growth, or the presence of a designated entity’s support.

Under the Program Delivery Instructions, officers are directed to assess:

1. Detailed marketing strategy
2. Customer acquisition planning
3. Competitive positioning
4. Founder capacity
5. Operational feasibility

A structured, evidence-based business plan that addresses these factors directly reduces the risk of refusal and strengthens the application under paragraph R205(a).

Understanding how viability is evaluated is the first step in preparing a work permit application that aligns with IRCC’s analytical framework.

Disclaimer:

This article is provided for general informational purposes only and does not constitute legal advice. The assessment of a Start-Up Visa work permit under paragraph R205(a) depends on the specific facts, documentation, and circumstances of each case. Readers should not rely on this material as a substitute for individualized legal advice. If you require guidance regarding a specific application or refusal, you should consult a qualified immigration lawyer.