Empowering Migrant Entrepreneurs: Insights From Successful Support Programmes.
Chris Shannon
Director at Startium | Entrepreneurship Development Technology | Startium helps you accelerate business formations and job creation.
He had no choice.
Ahmed's home, business and livelihood in Iraq had been destroyed in a bombing attack.
From that day, he knew he would live his future as a refugee. But to gain refugee status, he first had to claim asylum.
An “asylum seeker” is someone whose claim for refugee status is being formally considered.
Months later, having secured refuge in Denmark, Ahmed signed up for a specialist business coaching programme for Ethnic Minorities in Demark, funded by the European Social Fund.
Wanting to make use of his skills as a shoemaker and entrepreneur, he searched for opportunties, but quickly realised that shoes in Denmark were made in factories, by machines, not by hand.
Utilising his well-tested resilience, he got a job as a specialist orthopaedic shoemaker.
A couple of years later when the owner of the company wished to retire and considered winding down the business, Ahmed bought the company, with the help of his business coach.
Saving five jobs and creating more in the years that followed.
The role of the business coach in this scenario was to help the entrepreneur apply their skills, in new context and assist with the evaluation and pursuit of new opportunities. ?
Source: This case study was adapted from OECD/EU (2016), Inclusive Business Creation: Good Practice Compendium, OECD Publishing, Paris. https://dx.doi.org/10.1787/9789264251496-en
You see, Migrants contribute to economic growth in many ways, bringing new skills and competencies with them and helping to reduce labour shortages.
The OECD reports that:
?‘In OECD countries, entrepreneurship is slightly higher among immigrants than natives and the total number of persons employed in migrant businesses is substantial, although the survival rate of these businesses is often lower than that of their native counterparts.’
Based on what we’re seeing across the UK right now (August 2024), these survival rate statistics are unfortunately unsurprising. ?
But we can do something to address this.
Many Governments, organisations and ecosystem builders across Europe already are.
Source: OECD (2010),?Open for Business:?Migrant Entrepreneurship in OECD Countries, OECD Publishing, Paris,?https://doi.org/10.1787/9789264095830-en.
5 examples of Migrant Entrepreneurship Support Programmes from across Europe.
1. Programme: MigraVenture
What
The MigraVenture programme offers training, coaching, and investment to immigrants living in Italy who wish to create or expand businesses in their countries of origin. It was launched by the International Organisation for Migration (IOM) in Italy and the ETIMOS Foundation, with support from the Italian Ministry of Foreign Affairs and Italian Cooperation.
Why
Launched in 2016 as a pilot, the MigraVenture programme aims to shift the paradigm from merely supporting immigrant businesses to fostering collaborative business ventures. It encourages immigrant entrepreneurship, especially among women, and seeks to enhance the contribution of diaspora entrepreneurs to international development. This includes job creation and fostering business linkages between other countries and Italy.
Key Activities
The programme targets African immigrants legally residing in Italy, with a special focus on those from countries prioritised by the Italian Ministry of Foreign Affairs and women entrepreneurs. Applicants must submit a detailed business proposal demonstrating positive social, economic, and environmental impacts. The programme has three phases:
Impact
The pilot programme received about 100 applications, with 41 entrepreneurs from 13 countries selected for training. Of these, 33 moved on to the coaching phase, and 10 received micro-capitalisation investments. The success of the pilot led to the launch of MigraVenture 1.2. Between 2016 and 2019, the programmes trained 65 entrepreneurs and provided personalised coaching to 46, demonstrating significant engagement and support for African immigrant entrepreneurs in Italy.
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2. Programme: Touchpoints
What
Touchpoints is a non-profit organisation founded in 2016 that aids in the social and labour market integration of refugees through business creation. The organisation focuses on supporting the self-employment and employment of immigrants and refugees by providing training, coaching, and networking opportunities.
Why
Touchpoints was established to address the challenges refugees and immigrants face in navigating the entrepreneurship landscape, which is crucial for their integration into the labour market. The organisation also aims to promote cultural diversity and foster interaction between natives and immigrants to prevent societal disconnect.
Key Activities
Impact
By 2020, Touchpoints had assisted 500 immigrants and refugees, with 100 completing training workshops and 60 starting businesses. 80% of the businesses started through the Sleeves Up program were still operational in 2020.
In 2020 alone, 150 new participants were served, 46 graduated from the training program, and 90 attended information sessions. Touchpoints was recognised with third place in the ""Integration"" category at the 2019 ING Solidarity Awards."
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3. Programme: Startup Refugees
What
Startup Refugees is a network of professionals, support organisations, firms, and government officials dedicated to helping refugees integrate into the Finnish labour market through entrepreneurship and employment opportunities.
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The initiative, which includes over 1,000 members, was founded by two entrepreneurs who recognised the untapped skills and talents of refugees and asylum seekers.
Why
The founders believe that refugees and asylum seekers represent a resource rather than a social challenge. With international migration on the rise due to climate change and conflict, Startup Refugees aims to facilitate the integration of refugees into their new communities and the Finnish labour market, leveraging their potential and skills.
Key Activities
Impact
In the five years between 2015 and 2020, Startup Refugees facilitated the creation of over 200 new businesses. In 2020 alone, the organisation worked with 4,000 new refugees in 18 cities, resulting in the successful launch of 40 new companies and placing 900 individuals into jobs.
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4. Programme: Mingo Migrant Enterprises
What
Mingo Migrant Enterprises is an integrated support scheme for entrepreneurs with a migrant background in Vienna, offering business consultancy services in multiple languages and referrals to mainstream business support schemes.
Why
The initiative addresses the low engagement of migrant and ethnic minority entrepreneurs with mainstream business support schemes in Vienna. This low engagement is due to ineffective outreach and a lack of services in minority languages. With 40% of Vienna's population having a migrant background and a third of businesses owned by migrants, there is a significant need for tailored support.
Key Activities
Mingo Migrant Enterprises, ran by the Vienna Business Agency (WWFF) and funded by the Vienna city government and the European Regional Development Fund (ERDF), provides:
Impact
From 2008 to 2011, the scheme supported approximately 800 enterprise founders. It has become a trusted one-stop shop for business support among immigrant and ethnic minority communities. The networking events are particularly popular, and the number of business owners from these communities applying to other Mingo programmes has increased six-fold, indicating improved awareness and access to mainstream support.
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5. Programme: 'Promotion of Immigrant Entrepreneurship'
What
The "Promotion of Immigrant Entrepreneurship" project aimed to improve the integration of immigrants, particularly women and those in distressed neighbourhoods, by supporting business creation and self-employment through training and personalised coaching.
Why
Research by the Portuguese High Commission for Immigration and Intercultural Dialogue (ACIDI) revealed that immigrant-led businesses often operate in low value-added industries with low entry barriers. Immigrant entrepreneurs were identified as needing improved self-confidence and enhanced social and management skills to succeed.
Key Activities
The project utilised local actors such as immigration associations, banks, NGOs, and civil society organisations to conduct activities, leveraging their community knowledge. Key activities included:
Impact
Over the course of 5 years the project reached 1,450 immigrant participants, with 777 receiving certificates of attendance for the training. It supported the development of 305 business ideas and led to the creation of 75 businesses involving 80 immigrants. The project won the European Enterprise Promotion Award for Responsible and Inclusive Entrepreneurship.
Tailoring Entrepreneurship Support for Migrant Entrepreneurs
The OECD Inclusive Business Creation, Good Practice Compendium Report shares four recommendations to increase the success of Migrant Entrepreneurship Services:
1.????? Use advisors from within the client’s community group: Employing business advisors and coaches from within the client group enhances the program's ability to attract clients. This approach accelerates the development of trust between coaches and clients due to shared cultural values and attitudes. Additionally, the advice and coaching provided are more relevant and effective, as the coach is likely to have a deeper understanding of the challenges faced by the client.
2.????? Use professional advisors: If a main objective is to improve the quality of advice that entrepreneurs receive, research shows that ethnic minority entrepreneurs avoid using public business development services and instead rely heavily on family and friends. The use of a professional adviser improves the quality of business counselling provided.
3.????? Aim to develop personal relationships: This takes time, so the duration and scope of the programme is important. Personal relationships are essential for motivating clients and building trust. Especially when the client is facing significant risk, uncertainty and a lack of knowledge regarding country specific regulations and laws.
4.????? Ensure flexibility in the relationship: Flexibility in meeting frequency, duration, and location enhances access to support and increases the likelihood of engagement from the client group. This is particularly beneficial for entrepreneurs who have caregiving responsibilities alongside their business ventures.
I’ve highlighted these programmes because they demonstrate the significant ‘brain gain’ that migrants and refugees can offer our communities. Contributing taxes that fund public services and creating jobs that move people out of poverty.
A stark contrast to the criminals who choose to burn down such businesses, stoke fear, destroy livelihoods and significantly drain the already finite resources of our public services.*
Inclusive Entrepreneurship must reads:
* This article was written at a time when violence and racist attacks against migrants, immigrants and refugees was taking place across the UK.
Revenue Analyst at Verint UK/ Minorities Recognition Awards NI
3 个月Thanks for sharing Chris Shannon
?Inspirer of enterprise education, entrepreneurship & creativity? ??fierce female founder super fan ????host of The Octopus of Enterprise podcast ??@NTU Enterprise @Dryden Enterprise Centre @Nottingham Trent University
3 个月I absolutely agree that actions, however small they may seem are key. It would be easy to feel overwhelmed and freeze in the face of so many of the world's "wicked problems" and we all experience that feeling of powerless to get at the root causes. Our active contributions in communities make a huge difference to individual's lives. Thanks for sharing Chris, tagging in my NTU Enterprise colleague Jane Brown who heads up our Enterprise in Refuge programme ??
I devise and deliver marketing communications strategies - with a focus on messaging, tone of voice, content, and thought leadership - which drive growth, retention and brand value. Experienced leader and people manager.
3 个月Hear hear !
Chris, thanks for sharing. These seem to be nice programs, but as you taught us, without solving the root cause of the problem, it is hard to achieve tremendous change in this field ??