With an estimated 281 million people on the move worldwide, there’s no question migration is increasingly on the minds of politicians – and not necessarily those with the best intentions.
And yet research has long shown that migration brings significant economic benefits, including innovation, creativity, knowledge exchange, and fresh perspectives across borders. Recent data on the US economy show that 30% of the patented inventions in strategic industries involve migrant inventors, who make up to 20% of the workforce. And a major channel for these benefits, both for the host country and home country, is entrepreneurship.
Europe still failing migrant entrepreneurs
Though it has long been a magnet for migration, Europe has struggled to tap into this potential connected to non-EU entrepreneurs. While initiatives exist to boost migrant entrepreneurship, including the Entrepreneurship 2020 Action Plan, the long-term, systematic policies that create a level playing field remain elusive.
In countries such as France, Italy, and the Netherlands, research by the Erasmus+ MIG.EN.CUBE project highlights the challenges migrant entrepreneurs face. Drawing from 63 interviews and 105 surveys with migrant entrepreneurs and professionals from support organisations, the findings are clear: even with policies like startup visas in the high-tech sector, migrant entrepreneurs still struggle to get the support they need to launch and sustain their businesses.
No single programme can do it all
A key takeaway from the research is that a one-size-fits-all approach won’t cut it. This traditional approach is oftentimes unable to effectively deal with different group-specific challenges and ensure social and economic inclusion. Migrant entrepreneurs are a diverse group, encompassing students, workers, refugees, asylum seekers, and second-generation residents with vastly different cultural backgrounds, business expertise, and levels of integration into their host countries. Just to give an example, 3% of the people living in EU countries in 2022 were citizens from another EU country (top five countries of origin: Romania, Italy, Poland, Portugal, and Bulgaria), and 6% citizens from other non-EU countries (Ukraine, Turkey, Morocco, China, and Russia). Therefore, the support they need can vary substantially from basic needs like language lessons to more specific business-related requirements such as tax regulations.
Structures supporting businesses – pre-incubators, incubators, and accelerators – are trying to adapt to this diversity, for example by introducing programmes targeting specific groups, such as refugees or migrant women. However, they still have a long way to go. What we call “super-diverse” entrepreneurs have varied levels of business development and industry knowledge, making it difficult to provide a one-size-fits-all support.
Some commendable initiatives
Our report on incubators for migrant entrepreneurs found that the support available for migrant entrepreneurs varies widely. Some are tailored specifically for migrants, offering training designed to develop entrepreneurial skills and foster personal growth. Some examples include:
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Delitelabs, a startup school helping to achieve social integration and financial independence through entrepreneurship in the Netherlands;
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Place, which runs a pre-incubation program to help newcomer talent in France;
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Fondazione Grameen, which trains first-time entrepreneurs to transform an idea into a business project for fragile beneficiaries.
Other programmes are generalist programs, open to both local and migrant entrepreneurs, with a focus on accelerating business growth through mentoring, networking, and funding opportunities.
… that still don’t cut it
But there are significant gaps in the support system. Our report “Incubators’ Training Needs to Serve Migrant Entrepreneurs” points out that professionals running entrepreneurial support organisations lack adequate training, especially when it comes to understanding different cultures and using inclusive teaching methods. For example, major shortcomings regard the inadequate translation and adaptation of teaching materials, both from a linguistic and an intercultural point of view. Many support programs are not flexible in terms of attendance and organisation of schedules between in presence and offline training. Overall, migrant entrepreneurs observe that incubation professionals sit in a position of privilege in determining the design and delivery of programs, so that it might be tough to build reciprocal trust and effective support.
Closing these gaps requires action on both individual and systemic levels. On an individual level, professionals working with migrant entrepreneurs must confront their biases and undergo training to better serve this diverse community. They should also rely on experts such as work or occupational psychologists, cultural mediators or cultural specialists. Support shouldn’t render entrepreneurs dependent, but rather empower them to thrive on their own terms.
Systemically, the entire entrepreneurial ecosystem needs an overhaul. Support organisations, universities, investors, and industries must collaborate to create an inclusive system. Canada represents one of the most successful examples: a virtuous combination of coordinated programs at national and regional level to boost migrant entrepreneurship through integration and business support. Migrant entrepreneurs themselves should have a seat at the table in designing and delivering these programs, ensuring their voices and needs are prioritised.
