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Refugee entrepreneurs could boost the UK economy by an estimated £2bn if barriers to entrepreneurship were tackled and more tailored support made available, according to the Cedar Review, published today.
The independent review into refugee entrepreneurship in the UK, led by Small Business Britain, followed nine months of research. It examines the barriers preventing refugees from starting and growing businesses and sets out eight recommendations to the Government.
The research drew on a national survey, focus groups across the UK and written evidence. It found that 56 per cent of founders surveyed had run a business before arriving in the UK, while 79 per cent already employ people or plan to do so soon.
Michelle Ovens CBE, chief executive and founder of Small Business Britain and co-chair of the review, said: “Too often, discussion around refugees focus on need, support and integration. While these are undoubtedly important, they tell only part of the story. Refugees are also entrepreneurs, employers, innovators and creators of opportunity.”
She added: “The Cedar Review underlines the drive and potential refugee entrepreneurs have but the evidence presented questions whether our systems are designed to recognise that.”
Permission to work
The review found that lengthy restrictions on working and self-employment during the asylum process risk leaving entrepreneurial experience untapped. It said its findings point to structural barriers, rather than a lack of ability or ambition, that delay refugees from putting existing skills to use.
Under current rules, people who have claimed asylum can apply for permission to work after waiting 12 months for a decision on their claim, according to the House of Commons Library.
The Cedar Review calls on the Government to include self-employment within permission to work and to cut the waiting period before permission to work and start a business may be granted from 12 months to six. It said this would align the UK with the standard in the EU’s recast Reception Conditions Directive.
Status and settlement
More than a third (36 per cent) of founders surveyed identified uncertainty around their status in the UK as a key challenge when starting a business.
Since March, people granted refugee status have received 30 months of leave. The Government has said refugee protection will be reviewed every 30 months, with refugees able to move onto work or study routes.
The review said the 30-month timeframe makes it harder for founders to commit to leases, secure finance and make other long-term investments needed to grow a business. It recommends the Government amend the criteria for accelerated settlement so that verified business activity is recognised alongside salaried employment.
Access to support
According to the survey, 71 per cent of founders said there was support they needed but could not access. Where support was available and accessible, 67 per cent of those who received it found it helpful.
The review described support for refugee entrepreneurs as fragmented and poorly signposted. It is calling for a single, plain-language guide to starting a business in the UK, covering legal structure, registration, tax, VAT, licensing and insurance.
Small Business Britain, which also runs the Great British Pitch export programme, co-chairs the review with Anil Qasemi, founder of Hatopia. Separate analysis has found that immigrants founded 54 per cent of Britain’s fastest-growing start-ups.
Qasemi said: “Just over four years ago, I arrived in the UK from Afghanistan after the fall of Kabul, and today I run a small business that sells to customers in more than 30 countries. When I first started building hatopia alongside my day job, I had no idea where to begin and my confidence was low, but I knew I had a business concept worth pursuing.”
He said: “Someone took a chance on me, and through mentorship and accessing an interest-free loan, my business began to grow. The Cedar Review shows what refugee entrepreneurs can achieve when they are given the opportunity and supported by systems that work for them, not against them.”
He added: “I’m excited to see what positive change we can achieve as the work of the Cedar Review continues.”
