Migration’s Untapped Potential in Boosting the Global Economy
Migration is often a controversial topic, but its economic benefits are undeniable. With an estimated 281 million people on the move worldwide, it’s an issue that’s increasingly on the minds of politicians and policymakers. While some may focus on the challenges migration presents, there’s ample evidence to show that it brings significant economic benefits, including innovation, creativity, knowledge exchange, and fresh perspectives.
Recent data on the US economy highlight that 30% of patented inventions in strategic industries involve migrant inventors, who make up to 20% of the workforce. Additionally, a major channel for these benefits, both for the host country and the home country, is entrepreneurship. Despite this, Europe still faces significant challenges in tapping into this potential.
The Struggles of Migrant Entrepreneurs in Europe
Europe has long been a magnet for migration, yet it struggles to harness the entrepreneurial potential of non-EU migrants. While initiatives like the Entrepreneurship 2020 Action Plan aim to boost migrant entrepreneurship, long-term, systematic policies that create a level playing field remain elusive.
In countries such as France, Italy, and the Netherlands, research from the Erasmus+ MIG.EN.CUBE project highlights the challenges faced by migrant entrepreneurs. 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.
Why One-Size-Fits-All Approaches Won’t Work
A key takeaway from the research is that a one-size-fits-all approach is insufficient. This traditional approach often fails to address the diverse challenges faced by different groups 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.
For example, 3% of people living in EU countries in 2022 were citizens from another EU country (top five countries of origin being Romania, Italy, Poland, Portugal, and Bulgaria), and 6% were citizens from non-EU countries (including Ukraine, Turkey, Morocco, China, and Russia). Therefore, the support needed can vary substantially, from basic needs like language lessons to more specific business-related requirements such as tax regulations.
The Role of Pre-Incubators, Incubators, and Accelerators
Structures supporting businesses, such as pre-incubators, incubators, and accelerators, are trying to adapt to this diversity. They are introducing programmes targeting specific groups, such as refugees or migrant women. However, these efforts 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.
Commendable Initiatives in Support of Migrant Entrepreneurs
Our report on incubators for migrant entrepreneurs found that the support available varies widely. Some are tailored specifically for migrants, offering training designed to develop entrepreneurial skills and foster personal growth. For example:
- Delitelabs in the Netherlands helps achieve social integration and financial independence through entrepreneurship.
- Place in France runs a pre-incubation programme to help newcomer talent.
- Fondazione Grameen trains first-time entrepreneurs to transform an idea into a business project for fragile beneficiaries.
Other programmes are generalist, open to both local and migrant entrepreneurs, with a focus on accelerating business growth through mentoring, networking, and funding opportunities.
Gaps in the Support System
Despite these initiatives, significant gaps remain 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 in understanding different cultures and using inclusive teaching methods. Major shortcomings include inadequate translation and adaptation of teaching materials, both linguistically and interculturally. Many support programmes are not flexible in terms of attendance and organisation of schedules between in-person and online training.
Migrant entrepreneurs observe that incubation professionals often sit in a position of privilege, determining the design and delivery of programmes. This makes it tough to build reciprocal trust and effective support.
Action Steps to Close the Gaps
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 rely on experts such as occupational psychologists, cultural mediators, or cultural specialists. Support should empower entrepreneurs to thrive independently rather than render them dependent.
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, with coordinated programmes at national and regional levels to boost migrant entrepreneurship through integration and business support. Migrant entrepreneurs themselves should have a seat at the table in designing and delivering these programmes, ensuring their voices and needs are prioritised.
Inclusivity is not just a buzzword; it’s a crucial element for the success of migrant entrepreneurship. By fostering an inclusive environment, we can ensure that all entrepreneurs, regardless of their background, have the opportunity to succeed. This includes providing access to resources, mentorship, and networks that can help them overcome the unique challenges they face.
The Role of Policy Makers and Governments
Policy makers and governments play a vital role in supporting migrant entrepreneurs. They must create policies that promote inclusivity and provide the necessary resources for migrant entrepreneurs to thrive. This includes funding for support programmes, creating favourable business environments, and ensuring that migrant entrepreneurs have access to the same opportunities as their native counterparts.
The future of migrant entrepreneurship looks promising, but there’s still work to be done. By addressing the gaps in the support system and creating an inclusive environment, we can unlock the full potential of migrant entrepreneurs. This will not only benefit the entrepreneurs themselves but also contribute to the overall growth and innovation of the global economy.
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