Immigrant Entrepreneurship: Some Experience from the UK. Professor David Smallbone Small Business Research Centre Kingston University, London

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1 Immigrant Entrepreneurship: Some Experience from the UK Professor David Smallbone Small Business Research Centre Kingston University, London

2 Introduction In the UK, historically the emphasis has been on ethnic minority entrepreneurship, although in recent years migrant status has attracted more attention. The vast majority of immigrant owned businesses are very small, employing less than 10 people. They share many characteristics and problems with small businesses in general. The UK has been receiving immigrants for many years, which means that in some minority groups there are now third generation migrants. It is a mistake to consider small businesses only as competitors. Two thirds of the small businesses in the UK are essentially suppliers to large firms.

3 My involvement in immigrant-ethnic minority research The diversity of ethnic minority enterprise in North London The study of young entrepreneurs, women entrepreneurs, coentrepreneurs and entrepreneurs from ethnic minorities in the EU for the European Commission. The study of access to finance by ethnic minority firms in the UK Researching African Caribbean businesses in London Review and evaluation of business support provision for ethnic minority businesses in London Ethnic minority businesses: a policy related review Supplier diversity, public procurement and ethnic minority businesses Asians in London's creative industries Ethnic minority businesses, procurement and supply chain management Ethnic diversity and city competitiveness

4 The EU Context In Europe, policies can exist at the supranational, national and subnational levels. The EU tends to concentrate on policies for entrepreneurship in general. Its role includes: The exchange of good practice policies Active dissemination of policy experience between countries Monitoring the progress of individual countries in relation to set standards Some of the most effective policy measures targeted at immigrants or ethnic minorities are at the subnational level.

5 The EU Context In this context, the European Commission does contract research. For example, one study undertaken by the Triodos Facet (2008) identified 146 ethnic focused policy measures across 32 countries. Most of the countries involved were in North West Europe. The study distinguished between six types of interventions: Three aimed at the entrepreneurs themselves Three focused on the business environment (regulations) The European Commission is mainly interested in two main issues: 1. The contribution of entrepreneurship to economic competitiveness 2. Social inclusion

6 The EU Context It should be noted that the proportion of immigrants in the net population of European countries varies considerably and indeed within countries. If you take the UK, for example, at a national level approximately 10% of the population are members of ethnic minorities and in London the figure rises to 30%, and in some boroughs in the East end of London it rises to more than 50% of the population. London is a very diverse city with very substantial migrant populations. This represents some advantages, as well as some disadvantages.

7 Lessons from the UK The main immigrant groups are contributing to a higher level of entrepreneurship in the economy, since the Chinese, Indian and Pakistani communities have significantly higher levels of entrepreneurship than the White indigenous population. Many immigrate group are seen by main stream agencies as difficult to reach. A community based mode of delivery typically is more effective. One school of thought sees ethnic diversity as a source of competitiveness. In this context, they may be seen as assets to be utilised.

8 Lessons from the UK Another lesson from the UK in the promotion of immigrant entrepreneurship is part of a wider commitment to supporting to the development of an entrepreneurial economy. In general, the UK experience tends to emphasise the problems that immigrants face in setting up businesses, particularly in high regulated industries and professions. Research suggests that immigrant entrepreneurs are often not familiar with the rules, cultures and institutions and often lack the knowledge and skills to cope with the unfamiliar institutions.

9 Concluding remarks If immigrant entrepreneurs are seen as a threat then this suggests there is a need to raise the level of entrepreneurship in the indigenous community, qualitatively and quantitatively. Similarly if small firms are facing strong competition from large businesses, it suggest to me, firstly there is not enough differentiation in the small business sector with perhaps not enough attention paid to the choice of sector. Well contrasted supplier diversity programmes and help to spread the benefits of large firm development to local supplies.

Migration and multicultural Britain British Society for Population Studies. 2 nd May 2006, Greater London Authority

Migration and multicultural Britain British Society for Population Studies 2 nd May 2006, Greater London Authority Why migration and cultural origin? Public debate on population patterns Influence on small