Ethnic entrepreneurship

Transcription

1 Ethic etrepreeurship Case study: Lisbo, Portugal Click for cotets Wyattville Road, Loughlistow, Dubli 18, Irelad. - Tel: (+353 1) Fax: / postmaster@eurofoud.europa.eu - website:

2 Cotets About CLIP 1. Itroductio 2. Profile of Lisbo 3. Lisbo s urba ecoomy 4. Profile of ethic etrepreeurship 5. Policies, rules ad regulatios 6. Key challeges ad lessos for CLIP Bibliography List of persos ad orgaisatios iterviewed

3 About CLIP I 2006, the Cogress of Local ad Regioal Authorities of the Coucil of Europe, the city of Stuttgart ad the Europea Foudatio for the Improvemet of Livig ad Workig Coditios (Eurofoud) formed the Europea etwork of cities for local itegratio policies, heceforth kow as CLIP. 1 This etwork comprises a steerig committee, a group of expert Europea research cetres ad a umber of Europea cities. I the followig two years, the cities of Viea ad Amsterdam joied the CLIP Steerig Committee. The etwork is also supported by the Committee of the Regios (CoR) ad the Coucil of Europea Muicipalities ad Regios (CEMR) ad has formed a partership with the Europea Network Agaist Racism (ENAR). Through the medium of separate city reports (case studies) ad workshops, the etwork eables local authorities to lear from each other ad to deliver a more effective itegratio policy. The uique character of the CLIP etwork is that it orgaises a shared learig process betwee the participatig cities ad betwee the cities ad a group of expert Europea research cetres as well as betwee policymakers at local ad Europea level. The CLIP etwork curretly brigs together more tha 30 large ad medium-sized cities from all regios of Europe: Amsterdam (NL), Atwerp (BE), Arsberg (DE), Athes (EL), Barceloa (ES), Bologa (IT), Breda (NL), Budapest (HU), Copehage (DK), Dubli (IE), Frakfurt (DE), Helsiki (FI), Istabul (TR), İzmir (TR), Kirklees (UK), Liège (BE), Lisbo (PT), Luxembourg (LU), L Hospitalet (ES), Malmö (SE), Mataró (ES), Newport (UK), Prague (CZ), Strasbourg (FR), Stuttgart (DE), Sudsvall (SE), Talli (EE), Terrassa (ES), Turi (IT), Turku (FI), Valecia (ES), Viea (AT), Wolverhampto (UK), Wrocław (PL), Zagreb (HR), Zeytiburu (TR) ad Zürich (CH). The cities i the etwork are supported i their shared learig by a group of expert Europea research cetres i: Bamberg, Germay (Europea Forum for Migratio Studies, EFMS); Viea (Istitute for Urba ad Regioal Research, ISR); Amsterdam (Istitute for Migratio ad Ethic Studies, IMES); Turi (Iteratioal ad Europea Forum o Migratio Research, FIERI); Wrocław (Istitute of Iteratioal Studies); Swasea, Wales (Cetre for Migratio Policy Research, CMPR). There are four research modules i total. The first module was o housig segregatio, access to, quality ad affordability for migrats which has bee idetified as a major issue impactig o migrats itegratio ito their host society. The secod module examied equality ad diversity policies i relatio to employmet withi city admiistratios ad i the provisio of services. The focus of the third module was itercultural policies ad itergroup relatios. This fial module looks at ethic etrepreeurship. The case studies o ethic etrepreeurship were carried out i See also Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

4 Ethic etrepreeurship Ackowledgemets The author would like to thak all the iterviewees ad the participats met durig the field visit. She is particularly grateful to Aa Fortes ad Marisa Mateus, from the Studies ad Plaig Divisio of the Social Affairs Departmet of the Muicipality of Lisbo, for their support i collectig materials ad iformatio. The author is completely resposible for the cotet of this report, the copyright of which remais with Eurofoud. 2 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

5 Itroductio 1 The fourth module of the CLIP project focuses o ethic etrepreeurship, its role i the local ecoomy ad the policy created to facilitate settig up ad developig small ad medium-sized eterprises (SMEs). The study focuses o the emergece of ethic etrepreeurs i the sectors ad cities ivolved ad the role of govermetal ad o-govermetal regulatios i it. This report o Lisbo first outlies the evolutio of the immigrat populatio i Portugal. Lisbo is home to the majority of the coutry s foreig populatio. Reports o the ecoomic cotext, immigratio ad foreig etrepreeurship also cosider the Metropolita Area of Lisbo (MAL), which comprises several muicipalities where immigrats, atioal eterprises ad foreiger eterprises are also preset. The MAL has a fudametal role i the atioal urba ecoomy. It occupies some 3% of total territory ad, i 2004, had 2.8 millio ihabitats (26.2% of the total atioal populatio). The MAL cocetrates some 35% of the coutry s gross domestic product (GDP). 2 This report cosiders data that refer specifically to the city as well as data referrig to the MAL. Chapter 2 starts with a descriptio of the urba ecoomy of the city, the MAL ad the atioal cotext. As Lisbo ad the MAL area have a high percetage of all eterprises operatig i Portugal, atioal-level data have bee used as they mirror, to a large extet, the Lisbo cotext. Several sources are used, such as the Natioal Istitute of Statistics (INE), the Alies ad Borders Service (SEF), the Work ad Social Security Miistry (MTSS) ad the Miistry of Ecoomy, Iovatio ad Developmet (MEID). The report the presets a aalysis of migrat etrepreeurship i the Lisbo area. This part of the report relies primarily o iterviews carried out with migrat etrepreeurs, idepedet ad public istitutios, o INE data ad Oliveira s studies (2008a ad 2008b) that gives a extesive overview of the situatio i the last few years. Fially, Chapter 6 describes ad aalyses the rules ad policies that regulate the creatio of eterprises i geeral ad those of immigrats where pertiet. This sectio is based o iterviews ad o several websites that provide such iformatio. 2 Data are from the 2009 aual report o the Lisbo regio from the Natioal Istitute of Statistics Istitute (INE). Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

6 Profile of Lisbo 2 Brief descriptio of the city The MAL is the largest Portuguese metropolita area. It comprises 18 muicipalities ad about 25% of Portuguese people live there. The MAL is also the ecoomic ad fiacial cetre of Portugal (Foseca et al, 2002). The city of Lisbo is i the cetre of the MAL ad sice the 1950s it has udergoe a steady demographic growth. This is due to a series of successive migratio iflows, amely domestic migratio, the retur home of Portuguese people livig i the former coloies ad, sice the 1980s, foreig immigratio. However, sice the 1990s, the populatio withi the muicipality of Lisbo has declied sigificatly, decreasig by about 15% betwee 1991 ad 2001; accordig to the 2001 cesus, the muicipality of Lisbo has almost 565,000 ihabitats. Durig this time, other muicipalities of the MAL experieced a populatio growth. This chage is mostly due to ecoomically active youg people movig to the suburbs ad has bee reiforced both by the tertiarisatio of the cetral areas ad by the icrease i housig prices i more cetral ad prestigious areas. The size of the migrat populatio has also decreased: i 2001, the muicipality of Sitra overtook Lisbo as the muicipality i the MAL with the largest cocetratio of immigrats. 3 Furthermore, at 3.3%, the proportio of immigrats i the populatio of Lisbo is substatially lower tha the MAL average, which is 4.7% (Foseca et al, 2008). Over the last two decades, major chages i the social structure of Lisbo s populatio have bee liked to the wideig of the icome gap betwee social groups ad to the emergece of a ew type of poverty ad social exclusio that is associated with uemploymet, old age ad ethicity. Cotributig factors iclude the restructurig of idustrial output, chages i the professioal ad ethic compositio of the populatio ad the major urba itervetios that have take place i the city of Lisbo. The diversificatio ad segmetatio of the labour market have led to a icrease i uskilled jobs that are usually filled by migrats. Employmet opportuities ad security have become icreasigly precarious, particularly i persoal ad domestic services ad the buildig idustry, where ethic miorities are overrepreseted (Malheiros ad Vala, 2004; Foseca ad Esteves, 2002). It is also relevat to ote that sice 2002, the city of Lisbo, like the rest of the coutry, has udergoe a ecoomic dowtur, which may lead to these social ad ecoomic disparities beig wideed. I fact, immigrat groups seem to be the most vulerable to the ecoomic dowtur, as they are facig icreasig difficulties i fidig jobs; this is reflected i the fact that they have a higher uemploymet rate tha idigeous Portuguese people 4 (Foseca et al, 2008). Migrat populatio Data i this chapter are obtaied from three differet sources: SEF, INE ad MTSS. The INE data are for 2001, the date of the last atioal populatio cesus. The data from SEF are more recet (up to 2008) ad cosider the umbers of foreigers with residece permits ad those awaitig the reewal of log-stay permits. Fially, data from the MTSS, extracted from the Peixoto report (2008), allow a detailed aalysis of immigrat workers ad their work status. Some data with a atioal scope are also icluded, but as Lisbo ad its metropolita area house the large majority of immigrats, it is cosidered that such data mirror the city s immigratio situatio. 3 4 I 2001, 55% of the total migrat populatio lived i the MAL. I 2006, the uemploymet rate for the populatio of me bor i Portugal was 6.9% ad for foreig-bor me 8.2%, while for wome it was 9.3% ad 11.4% respectively (SOPEMI-OECD, 2008). Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

7 Ethic etrepreeurship I 1980, there were oly 50,750 foreigers i Portugal. I 2001 this umber had jumped to 350,898, a icrease of 591%. I 2001 ad 2002, the highest rates of growth were registered due to Decree-Law o. 4/2001 of 10 Jauary 2001, which regulated the etry, stay ad leavig coditios of migrats i Portugal. This law allowed the regularisatio of immigrats, which led to the arrival of may foreigers from easter Europea coutries. After 2002, the growth i umbers of foreigers i Portugal bega to declie alog with egative growth betwee 2004 ad Accordig to the iterviews coducted for this report, this may be explaied by the lack of ecoomic opportuities i the labour market ad the emigratio of some migrats to other Europea Uio coutries. This is particularly evidet i the case of Ukraiias who have left Portugal to retur home or to emigrate to other coutries. I the past few years, foreig populatio growth has bee betwee 1.04% ad 3.7%. Table 1 gives a overview of the foreig populatio with a residece permit i Portugal betwee 1980 ad Table 1: Evolutio of the foreig populatio i Portugal, Year Total Growth % Year Total Growth % Year Total Growth % , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Source: SEF data, 2008 Table 2 provides iformatio about the 10 mai atioalities for 1986, 1996, 2006 ad It shows that the compositio of atioalities chaged cosiderably i these years. I 1986, migrats were maily from Europe (Spai, Germay, Frace ad the Uited Kigdom (UK)), the Uited States (US) ad Caada. However, Cape Verde ad Brazil accouted for the two highest coutry totals. Subsequet aalysis shows that these two coutries still formed the mai migrat populatios i 1996, followed by migrats origiatig from former Portuguese coloies i Africa, the so-called PALOP. 5 I 2006, although Brazilias ad people from Cape Verde still topped the list, they were ow closely followed by easter Europeas, especially those from the Ukraie ad Moldova. PALOP coutries cotiued to be amog the 10 major atioalities, far outstrippig people from Caada ad Frace. I 2008, Brazil was still at the top, with the Ukraie, Romaia ad Moldova high o the list, although PALOP is still represeted. A ew group o this list is Chiese immigrats, who have icreased i umber substatially. Wester ad EU coutries o loger feature o the list, with the exceptio of the UK. 5 Paises Africaos de Ligua Oficial Portuguesa (Africa Coutries of Portuguese Official Laguage). 6 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

8 Case study: Lisbo, Portugal Table 2: Te mai foreig atioalities i Portugal, 1986, 1996, 2006 ad Natioality No. % Natioality No. % Natioality No. % Natioality No. % Cape Verde 26, Cape Verde 39, Brazil 71, Brazil 107, Brazil 7, Brazil 20, Cape Verde 68, Ukraie 52, Spai 6, Agola 16, Ukraie 39, Cape Verde 51, US 6, Guiea-Bissau 12, Agola 33, Agola 27, UK 5, UK 12, Guiea-Bissau 25, Romaia 27, Veezuela 4, Spai 9, UK 19, Guiea-Bissau 25, Agola 3, US 8, Spai 16, Moldova 21, Germay 3, Germay 7, Moldova 14, UK 15, Frace 2, Frace 5, Germay 13, Chia 13, Caada 2, Mozambique 4, S. Tomé & Pricipe 11, S. Tomé & Pricipe 11, Total 86,982 Total 17,900 Total 426,122 Total 443,102 Source: SEF, 2008 The highest umbers of foreig atioals are aged (Table 3). The ratio is relatively similar for me ad wome. Ideed, 47.2% of me are betwee 20 ad 39 years old ad 50.1% of wome are betwee 20 ad 39 years old. Youg people aged up to 19 years old form oly 17.4% of the total foreig populatio, followed by those i the age group who comprise 30.6% of the total foreig populatio. Fially, there are few elderly foreigers, comprisig oly 3.4% of the total foreig populatio. Table 3: Total foreig populatio i Portugal, by age group ad geder, 2008 Age groups Geder Total % 0 19 % % % 65 ad more % Total 440, , , , ,129 24,609 Me 230, , , , ,459 20,777 Wome 209, , , , ,670 14,744 Source: SEF, 2008 Data o the educatioal level of foreig populatio refer to the 2001 Portuguese cesus. Data are at the atioal level, but as the great majority of Portugal s foreig populatio is i Lisbo, that data ca be cosidered as mirrorig the Lisbo case. This beig so, there are some iterestig differeces. Cape Verdias represet the highest share of those with very low levels of educatio (Table 4). Ideed, 80% of the Cape Verde populatio has a very low level of educatio. This foreig group is followed by other PALOP coutries, with 46.9% havig a very low level of educatio. Brazil is i the third positio, with 30.8% of Brazilias displayig a very low level of educatio, while 22.9% of people from easter Europea coutries ad 23% of those from the EU15 have very low levels of educatio. A iterestig aspect is the share of very low levels of educatio amog ative-bor people, with 60.1% of total populatio i this category. Illiteracy is a importat idicator of the educatioal level. Cape Verde has the highest share: 14.8% of the populatio is illiterate. Brazil ad EU15 coutries have a lower share, with 0.7% ad 0.6% respectively. A low level of educatio is also preset i all atioalities, with the highest share for other PALOP ad a 11.6% share for Cape Verde. Medium educatioal level is relatively equally distributed amog the differet groups except for Cape Verdias, with 6.4% of the total Cape Verde populatio. Fially, a high educatioal level is more commo for Brazil, easter Europea coutries ad EU15 Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

9 Ethic etrepreeurship coutries. Cape Verde ad other PALOP states have low shares with 2.1% ad 6.8%, respectively. It is iterestig to ote that high-level educatio is particularly ucommo amog the ative-bor populatio (11%). I coclusio, Cape Verdia ad ative-bor populatios are similar as regards educatioal levels. Easter Europea coutries ad EU15 coutries have better educatioal stadards. Table 4: Educatioal level i Portugal, by mai atioalities, 2001 (%) Coutry of birth Very low Of which illiterate Low Medium High Cape Verde Other PALOP Brazil Easter Europea coutries EU Native bor Source: Cesus, INE, 2001 Foreigers are essetially distributed across seve mai ecoomic sectors: maufacturig idustry (14.2%); costructio (23.9%); wholesale ad retail trade, motor repairs (11.1%); accommodatio ad restaurats (14.8%); trasportatio (3.5%); estate agecies, services to firms (22.3%); health ad social work (2.8%). Table 5 shows the distributio of employed foreigers ad total populatio by sector of activity. This distributio amog sectors is ot surprisig if it is cosidered that foreigers, with the exceptio of the former EU15 coutries, Caada ad the US, are maily blue-collar workers for me ad cleaers ad care-givers for wome. 8 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

10 Case study: Lisbo, Portugal Table 5: Total employed populatio ad foreig populatio i Portugal, by sector of activity, 2004 Sector of activity Source: MTSS/DGEEP, 2004 (i Peixoto, 2008) Foreigers Total Number % Number % % Foreiger/ total Agriculture 3, , Fishig , Extractive idustries , Maufacturig idustry 19, , Electricity, water ad gas , Costructio 32, , Wholesale ad retail trade, motor repair 15, , Accommodatio ad restaurats 20, , Trasportatio, coectios 4, , Fiacial activities , Real estate, services to firms 30, , Public admiistratio , Educatio 1, , Health ad social work 3, , Other activities of collective, social ad persoal services 3, , Iteratioal orgaisatios Total 138, ,573, Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

11 Lisbo s urba ecoomy 3 This sectio is based o INE reports (2008a ad 2008b). Very few studies have bee foud that specifically cosider the Lisbo ad MAL urba ecoomy. Historical developmet Accordig to INE (2008a ad 2008b), the MAL presets specificities that ifluece the developmet of the Lisbo urba ecoomy. These features are, amog others, idustrial relocalisatio, the devolutio of ecoomic activities ad a process of coastal tourism. The chages i the urba ecoomy are mirrored by the chages i the active populatio. I the last three decades, Portugal has witessed a chage from primary ad secodary sectors of activity to a developmet of the tertiary sector, amely of trades ad services. However, the secodary sector, amely idustries, is still preset to the south of the MAL. The primary sector is mostly cocetrated i the orth of the MAL ad employs oly 1.2% of the total active populatio. The urba ecoomy of Lisbo ca be cosidered a post-moder ecoomy, i the sese that the urba ecoomy of the city is mostly dedicated to services. Accordig to the INE reports (2008 ad 2009), the MAL has the greatest cocetratio of firms i the coutry. I 1991, there were 70,716 firms i the MAL; that is, aroud 40% of all the firms i Portugal. I 1998, there were almost 100,000 firms, employig almost 1 millio people. Over the years, characteristics of firms have chaged, ad they have become smaller ad more umerous. I 1991, for every 10 firms i the MAL, two had fewer tha 10 workers, four had workers ad four had 500 or more. I 1990, there were some 55,000 eterprises. I 1997, there were 75,000, a aual icrease of 5.2%. The aual creatio rate of ew eterprises was 15%, while the aual mortality rate of eterprises was 10%. Aother importat aspect i the developmet of the Lisbo ad MAL urba ecoomy has bee the icrease of ivestmet ad workers i the iformatio techology (IT) sector (INE, 2008a ad 2008b). Mai idustries ad services Accordig to INE (2008 data), the mai idustries ad services, cosistet with the distributio of workforce by sectors of activity, are services to firms, retail trade, wholesale trade, accommodatio, restaurats ad costructio. These activities accout for 60% of employmet i the MAL. I the city of Lisbo, the share of services is more evidet (84%). Apart from the above, there are also air trasport, telecommuicatios, baks ad isurace. Size ad characteristics of workforce Data for the MAL ad for the city of Lisbo do ot differ much i terms of the distributio of employed people i the primary (agricultural), secodary (maufacturig) ad tertiary (services) sectors (Table 6). First of all, i the total employed populatio, there are more me tha wome both i the MAL area ad the city of Lisbo, with 56.2% ad 52.2% respectively. The primary sector has very few employed out of the total employed populatio, with oly 0.2% i the MAL area ad 0.1% i Lisbo, while 19.3% of the total employed populatio of the MAL area ad 9.4% of the total employed populatio i Lisbo work i the secodary sectors. As is clear, secodary sector establishmets are located maily outside Lisbo. This also applies to the share of me ad wome employed i the secodary sector. There are more me ad wome workig i this sector i the MAL area tha i Lisbo. I fact, 26.4% of the total employed me work i secodary activities i the MAL area while they accout for oly 13.5% i Lisbo. The share of wome is lower, with 10.3% of total wome workig i this sector i the MAL area ad 5% i Lisbo. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

12 Ethic etrepreeurship The tertiary sector employs the majority of workers i Lisbo ad the MAL area. As for the latter, 80.5% of the employed populatio works i this sector, while i Lisbo the ratio is eve higher, with 90.4% of the employed populatio. The distributio for me ad wome over the total populatio shows a differece betwee the MAL area ad Lisbo. I fact, me employed i the tertiary sector over the total employed male populatio are 67% i the MAL area ad 86.3% i Lisbo. There are also more wome employed i this sector i Lisbo tha i the MAL area. Table 6: Distributio of the employed populatio i the MAL area ad i Lisbo, by sector of activity ad geder, 2007 Sector Geder MAL % Lisbo % Total 570, , Total Me 320, , Wome 250, , Total 1, Primary sector Me Wome Total 110, , Secodary sector Me 84, , Wome 25, , Total 459, , Tertiary sector Me 235, , Wome 223, , Source: INE, 2008 Aual Lisbo Statistics A importat idicator for this report is the occupatioal status of the employed populatio. Of the total employed populatio (2008 data), 49.9% are me ad 50.1% wome. Of the total employed populatio, 14.9% are self-employed. Amog self-employed people, me are i the majority (61.9%) while wome comprise 38.1% of all self-employed people (Table 7). Table 7: Employed populatio i MAL ad rate of self-employed, by geder, 2008 Occupatioal status Geder Number i thousads % Employed Of which: Self-employed Source: INE, 2008 Aual Lisbo Statistics Total 1,130,1 100 Me 563, Wome 566, Total 187, Me 115, Wome 71, More tha 50% of the active populatio i the Lisbo regio has oly a basic educatio, with some 20% havig oly a primary (elemetary) school educatio or o educatio. As for the geder distributio, data refer oly to basic school levels, at which me are usually overrepreseted. Table 8 shows the level of educatio of the active populatio i the MAL for Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

13 Case study: Lisbo, Portugal Table 8: Educatioal level of active populatio i MAL, by geder, 2008 Sector Geder Number i thousads % Total Without educatio Elemetary school 2d cycle of basic school 3rd cycle of basic school Secodary school Uiversity Source: INE, 2008 Aual Lisbo Statistics Total 1,446,4 100 Me 744, Wome Total 37,8 2.6 Me.a. - Wome.a. - Total 257, Me 137, Wome 119, Total 204, Me 123, Wome 81, Total 323, Me 173, Wome 150, Total 298, Me.a. - Wome.a. - Total 324, Me.a. - Wome.a. - Qualified occupatios such as maagerial staff, directors of eterprises, itellectual professios, itermediary techicias ad admiistrative staff make up some 48.5% of the total employed populatio i the Lisbo regio (as outlied i Table 9). Services staff ad salespeople also have a sigificat share, accoutig for 16.3% of the total employed populatio. No-qualified workers, operators of machiery ad blue-collar workers make up 28.1% of the total employed populatio. Fially, farmers ad fishery workers accout for just 1.2%, similar to that of people employed i the army (1.1%). Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

14 Ethic etrepreeurship Table 9: Employed populatio i the MAL, by occupatio, 2008 Number i thousads % Total 1,327, Maagerial staff, directors of eterprises 104,4 7.8 Itellectual professios 184, Itermediary techicias 185, Admiistrative staff 171, Services staff ad salespeople 215, Farmers, fishery workers 15,7 1.2 Blue-collar workers 173, Machie operators No-qualified workers 193, Army persoel 15,3 1.1 Source: INE, 2008 Aual Lisbo Statistics The uemploymet rate i the MAL stood at 8.2% i 2008 (Table 10). For wome, the rate is higher tha the total uemploymet rate, at 8.4%. The group aged have a uemploymet rate of 20.9%. Table 10: Uemploymet rate i the MAL, 2008 Uemploymet rate (%) Total 8.2 Wome years 20.9 Source: INE, 2008 Aual Lisbo Statistics Whe lookig at the distributio of the foreig ad total populatio i Portugal by work status i 2004, it appears there is a high percetage of foreig atioals amog the skilled, semi-skilled ad uskilled workers (77.5% of the total foreig employed populatio) (Figure 11). Compared with the total employed populatio, foreigers are more prevalet amog uskilled workers (30.8%). As expected, the share of the total populatio amog those who are highly skilled, team leaders, middle maagers ad seior maagers is higher for Portuguese employed people tha for foreig employed people. 14 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

15 Case study: Lisbo, Portugal Table 11: Total employed populatio ad foreig employed by type of job i Portugal, 2004 Professioal status Source: MTSS/DGEEP, 2004 (i Peixoto, 2008) Employed people with foreig atioality Employed people total Number % Number % % Foreiger/ total Seior maagers 3, , Middle maagers 2, , Team leaders 1, , High-skilled professioals 3, , Skilled workers 45, ,054, Semi-skilled workers 19, , Uskilled workers 42, , Appretices 9, , Ukow level 10, , Total 138, ,573, With regard to type of job cotracts, of the total employed foreig populatio, 97% are salaried employees ad 2.9% are etrepreeurs (Table 12). The share of etrepreeurs is higher for me (3.2%) tha for wome (2.3%). Table 12: Employed foreig populatio, by type of job cotract i Portugal, 2004 Foreigers Number % Number % Number % Etrepreeur 4, , , No-salaried family worker Salaried employees 138, , , Cooperative activity No-defied situatio Total 142, , , Source: MTSS/DGEEP, 2004 (i Peixoto, 2008) A aalysis of the cotractual positio of the mai atioalities preset i Portugal i 2004 shows that atioals of the 25 EU Member States prior to elargemet i May 2004 (EU25) have the highest percetage of etrepreeurs (14%), followed by Brazilias (1.7%), Cape Verdias ad those from other PALOP coutries (1.3%) (Table 13). The 7% of the foreig atioals icluded i the others category are etrepreeurs; however, data do ot provide more details o the atioalities icluded (except for Asia people). Fially, easter Europea coutries have a low percetage of etrepreeurs, with 0.5% for other easter Europea coutries ad 0.2% for Ukraiia citizes. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

16 Ethic etrepreeurship Table 13: Foreig employed populatio by cotractual situatio i Portugal, 2004 Source: MTSS/DGEEP, 2004 (i Peixoto, 2008) Developmet of small ad medium busiesses Cotractual situatio Total Total % Natioality Number % Etrepreeur Employees Other Etrepreeur Employees Other EU25 11, ,606 9, Ukraie 28, , Other easter Europea coutries 15, , Cape Verde 13, , Other PALOP coutries 24, , Brazil 28, , Others 20, ,365 19, Total 142, , , I order to classify SMEs, two criteria are idetified by Portuguese legislatio: the umber of workers ad the turover as defied i Decree-Law o. 372/2007. This meas that SMEs have fewer tha 250 employees ad their aual turover does ot exceed 50 millio. Amog these eterprises, micro-eterprises have fewer tha 10 employees ad a maximum turover of 2 millio per year. Small eterprises have fewer tha 50 employees ad a turover of o more tha 10 millio per year (IAPMEI, 2008b). Data for the atioal level are preseted here but as the majority of eterprises are cocetrated i Lisbo ad its metropolita area, the atioal data mirror the city figures. Portuguese SMEs represet some 99.6% of all compaies, ad accout for three-quarters of workplaces. I 2007, there were some 297,000 SMEs, with some 2.1 millio workplaces. Micro- ad small eterprises represet 97.3% of eterprises ad have some 1.5 millio workers. Micro- ad small eterprises play a icreasigly relevat role i the Portuguese ecoomy, with positive growth over the years. Betwee 2000 ad 2005, the umber of ew micro- ad small eterprises grew by 7% per year while the umber of large eterprises grew oly 1.1% per year. This meas that some 17,100 eterprises were created each year with aroud 77,100 ew workplaces per year (IAPMEI, 2008b). A importat aspect is the costat reductio of the mea umber of workers per eterprise. For istace, there were eight employees per eterprise i 2000 ad seve employees per eterprise i Whe cosiderig the sectors of activity, ad with data from the 2007 report by the Istitute for Support to Small ad Medium Eterprises ad Iovatio (IAPMEI, 2008a), oe iterestig poit is that most compaies are active i the tertiary sector. Ideed, trade ad services (icludig tourism) are domiat i the atioal ecoomy. SMEs are very importat i the trade sector. I 2007, at the atioal level, there were 299,115 eterprises out of a total of 1,101,681 eterprises (some 31.7%). Trade has the highest share of eterprises ad the highest share of people employed (871,289 employees out of 3,831,034 employees at atioal level). This is also the case for Lisbo. I geeral, trade eterprises are small or medium eterprises: 96.3% are small eterprises employig fewer tha 10 people. I the services sector, there were 56,000 eterprises i 2000, accoutig for 22.4% of the workforce (520,000 workplaces) (IAPMEI, 2008b). Betwee 2000 ad 2005, the umber of service eterprises grew by 10.1% per year. This 16 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

17 Case study: Lisbo, Portugal icrease of services i the Portuguese ecoomy is associated with the declie i the maufacturig idustry. Aother growig sector is costructio, with a aual icrease of 13.5%. I 2000, 10.2% of eterprises were i this sector of activity, while i 2005 it accouted for 13.9% of eterprises. The distributio of SMEs by sector, accordig to the report from the Istitute of Support for Small ad Medium Eterprises (IAPMEI, 2008b), is as follows: 99.9% of eterprises i tourism are SMEs; 99.6% of eterprises i services are SMEs; 99.2% of eterprises i maufacturig are SMEs; 99.7% of eterprises i extractio are SMEs; 95.4% of eterprises i eergy are SMEs; 99.8% of eterprises i costructio are SMEs; 99.7% of eterprises i trade are SMEs. Lookig at the geographical distributio of those eterprises, there is a substatial cocetratio i two regios: the North ad Lisbo (some two-thirds of eterprises). However, there has bee a process of diffusio of eterprises throughout Portugal (IAPMEI, 2008b). Table 14 shows key idicators for eterprises i the MAL area ad Lisbo i The desity of eterprises is higher i the MAL area tha i Lisbo. Moreover, eterprises are mostly idividual firms; that is, uder sole owership. The umber of employed persos is rather low, with 95.9% of eterprises havig fewer tha 10 workers. The mea umber of workers per eterprise is 4 for Lisbo ad 4.4 for the MAL area. Fially, it is evidet that the turover is higher i MAL tha i Lisbo. Table 14: Key idicators for eterprises, MAL ad Lisbo, 2008 MAL Lisbo Desity of eterprises (o. km 2 ) Proportio of idividual eterprises (%) Proportio of eterprises with fewer tha 250 employed (%) Proportio of eterprises with fewer tha 10 persos employed (%) Persos employed per eterprise o Turover per eterprise (thousad euro) 572,2 496,6 Source: INE, 2008 Aual Lisbo Statistics Sectoral ad spatial distributio of SMEs Accordig to IAPMEI, the spatial distributio of small ad medium-sized eterprises reveals a plethora of odes of distributio ad spatial specialisatios. There is a cocetratio of fiacial activities, real estate ad services to eterprises i Lisbo ad, to a lesser degree, i Oeiras. The highest share of maufacturig is i the North, i South Tejo ad Palmela/Setubal. Extractive idustry, costructio, electricity, water ad gas firms are i more rural zoes, amely Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

18 Ethic etrepreeurship i Setubal ad i some areas of West Lisbo. Firms i sectors such as accommodatio, restaurats, trade ad the repair idustry are dispersed i differet cities of the MAL area. Fially, there exists a typical tow distributio of activities that eed more space, such as trasport, commuicatio ad storage. Ideed, these activities are located i the MAL area, where there is the space to accommodate big eterprises ad to store goods. Firms i the tertiary sector are mostly cocetrated i the cetre of Lisbo (Baixa, Chiado) ad the orth of the city (Amoreiras, Marques de Pombal, Aveidas Novas), where 30% of all firms operatig i the city ca be foud. Moreover, there are also cocetratios of SMEs outside the city of Lisbo, amely Amadora, Caraxide-Alfragide ad Oeiras, which hosts the sciece ad techology park (TagusPark), ad i the axis of Lisbo-Sitra ad Lisbo-Cascais. Recet chages As stated above, the mai chage is the icrease ad developmet of high- ad medium-type techology eterprises. I 2007, almost 10% of the total ivestmets i o-fiacial compaies were for high ad medium techology eterprises (IAPMEI, 2008a). The iterviews for this report reflect the difficult situatio for eterprises due to the crisis, but they do ot give details o the issue. 18 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

19 Profile of ethic etrepreeurship 4 This sectio relies o studies doe by Oliveira (2008a ad 2008b) ad o iterviews with migrat etrepreeurs ad istitutioal actors. This research area has bee extesively studied by the author ad a i-depth aalysis has bee made alog with extesive empirical research that is complemeted with the iterviews. Defiitio of ethic etrepreeurship I the iterviews for this study as well as i the studies by Oliveira (2008a ad 2008b), the term more commoly used is immigrat etrepreeurship. Firstly, the so-called theory of lusotropicalism 6 has iflueced immigratio policies (Pires, 2010), which gave preferetial treatmet to migrats from PALOP coutries ad Brazil. I fact, util very recetly those immigrats foud it easier to obtai stay ad residece permits ad, ideed, Portuguese atioality (Pires, 2010). I parallel, immigrat etrepreeurship is a more appropriate term because it allows oe to cosider those with a Portuguese atioality ad a experiece of iteratioal migratio (Oliveira, 2008a, p. 46). As outlied by Oliveira: It is crucial to distiguish betwee otios of immigrat ad foreig, as they traslate ito differet groups. The immigrat is defied as a idividual who, havig bee bor i a certai territory, migrated to aother coutry where he or she lived for at least oe year. Therefore the movemet of chagig territory i itself does ot reflect the atioality of a idividual. A substatial proportio of immigrat etrepreeurs i Portugal have Portuguese atioality. I cotrast, the otio of foreiger caot be dissociated from that of atioality, meaig that ay idividual who has a differet atioality to that of the coutry they reside i is a foreiger. As a cosequece, ot all foreigers are immigrats. (Oliveira, 2008b, p. 103) Developmet of ethic etrepreeurship Table 15 provides a overview of the active Portuguese ad foreig populatio by professio i 1981, 1991 ad Accordig to Oliveira (2008b), the category of etrepreeurship icludes two differet professioal situatios: etrepreeurs with salaried employees ad idividual etrepreeurs with o employees. The first aspect to ote is the icrease i the percetage of etrepreeurs with salaried employees amog the foreig populatio: 5.1% i 1981, 7.7% i 1991 ad 10.2% i What is strikig is that the percetage of foreigers i this category is higher tha that of the Portuguese for all years cosidered. However, this is ot the case with idividual etrepreeurs (with o employees). Ideed, the share of this secod category is higher amog Portuguese tha foreigers. Lookig at the percetage icrease betwee 1981 ad 2001, the data reveal a substatial icrease of 1,036% for foreigers as etrepreeurs with salaried employees ad 188% for idividual etrepreeurs. The icrease i umbers of immigrat etrepreeurs with employees ad idividual etrepreeurs without employees has kept pace with the growth i umbers of foreigers i Portugal. With regard to the active foreig populatio, there were 35,709 foreigers i 1981, 57,744 i 1991 ad 210,647 i Lusotropicalism was a theory iveted by Brazilia author Gilberto Freyre proposig that the Portuguese were better coloisers tha other Europea atios. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

20 Ethic etrepreeurship Table 15: Employers ad self-employed Portuguese ad foreig populatio, Professioal situatio Employers Self-employed Family workers Total Source: Cesuses (INE, i Oliveira, 2008b) Variatio Number % Number % Number % 2001/1981 % Portuguese 130, , , Foreig 1, , , ,036 Portuguese 632, , , Foreig 3, , , Portuguese 100, , , Foreig , Portuguese 4,147, ,788, Foreig 35, , , Table 16 outlies the distributio of immigrat etrepreeurship by atioality i 1981, 1991 ad 2001 i Portugal. Immigrats from Europe have, i geeral terms, higher etrepreeurship rates tha Africas or Brazilia atioals. Amog EU citizes, British citizes have the highest rates; that is, 16.2% i 1981, 19.5% i 1991 ad 23% i 2001, followed by Germa ad Spaish citizes. Rates for Africa immigrats i 2001 rage from 6% for Sao Tomé ad Pricipe to 9.1% for Mozambique. I this category, immigrats with a Idia backgroud ca be icluded sice may of them came from Mozambique, with Portuguese or Mozambica atioality. Aother tred ca be see for Asias. I 1981, 9.8% of immigrats were Asias, a figure that icreased substatially i 1991 to 21.3%. However, i 2001, there was a fall to 19.1%. This applies to the Idia ad Pakistai cases. Oliveira s studies (2008a ad 2008b) do ot provide a clear explaatio for this decrease. Chiese immigrats show a costat ad substatial icrease, from 22.2% i 1991 to 36% i Table 16: Etrepreeurship rates by atioality i Portugal, (%) Coutry of origi Source: Cesuses, INE (i Oliveira, 2008b) Variatio 2001/1981 Coutry of origi Variatio 2001/1981 Total Europe Total America Germay Brazil Spai USA Frace Veezuela Uited Kigdom Total Asia Ukraie Chia Total Africa Idia Agola Pakista Cape Verde Oceaia Guiea-Bissau Foreigers Mozambique Portuguese S. Tomé ad Pricipe Accordig to Oliveira s research (2008b), immigrats acquired some professioal experiece i the host coutry before startig their busiess. Most of them have legal residece or are Portuguese atioals. 20 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

21 Case study: Lisbo, Portugal Accordig to Oliveira (2008a, p. 143), Idias start their busiess at the average age of 25, while Cape Verdias start at aroud 30, with Chiese people begiig at aroud 31. Most migrat etrepreeurs are male (Oliveira, 2008a, p. 144). There are differet educatioal levels depedig o atioality. Cape Verdias are less qualified (with some 70% havig oly basic schoolig), Idias have more qualificatios, icludig uiversity degrees, ad Chiese migrats mostly have a secodary school educatio. Sectoral ad spatial distributio of ethic eterprises Most immigrat etrepreeurs are located i the MAL area ad operate i various sectors of activity. Accordig to Oliveira (2008b) ad the iterviews coducted for this study, the mai sectors of activity are costructio, trade, hotels ad restaurats ad some specific sectors such as furiture (favoured by Idias) or ethic restaurats (favoured by the Chiese). Noetheless, it was also stated i the iterviews that foreigers ad immigrats have bee opeig busiesses i other activities, such as laudries ad hairdressers as well as services such as cleaig. Owership of ethic busiesses A importat poit about these firms characteristics that arose from the iterviews, is that migrat etrepreeurs ted to have small, or very small, firms. They are geerally ru by oe perso with the legal status of idividual societies. It is commo, however, to fid firms with family co-owers or associates. I her study of immigrat etrepreeurs i Lisbo ad the MAL, Oliveira (2008a, p. 129) gives the followig aalysis: 59.5% have o co-owers; 34.4% have co-ethic co-owers; 4.4% have Portuguese co-owers; 1.3% have Portuguese ad co-ethic co-owers. Havig a Portuguese co-ower may help i dealig with bureaucracy, but the author does ot provide ay iformatio o this aspect. Cosiderig the fiacial aspect, ad accordig to the Oliveira study (2008a, p. 134), may migrat etrepreeurs rely o family savigs ad the help of fellow ethic migrats to collect the ecessary amout of moey to start their busiess. Idias also rely o bak loas which are facilitated by the fact that some of them have Portuguese atioality. Cape Verdias rely more o their persoal savigs tha o family or co-ethic help. Reasos for etrepreeurial career Reasos for etrepreeurship are varied. Accordig to this study s iterviews with migrat etrepreeurs ad to Oliveira s research (2008a, p. 114), oe reaso is because of labour market discrimiatio. Aother reaso is the wish to be idepedet, which is see as a positive choice by the family or the migrat group, sice it marks a chage i the idividual s social status. Migrats experiece as salaried workers helps them to ope ad develop a busiess. Whe choosig what to do, migrat etrepreeurs are ofte iflueced by their family ad co-ethic commuity, who ted to ecourage them to eter the sectors i which their co-ethic commuity already specialises. This is particularly evidet i the case of Chiese or Idias. Ideed, Chiese people are mostly preset i the ethic restaurat busiess, which is a specialisatio of their co-ethic commuity. Idias are mostly preset i the furiture sector, which is also a special Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

22 Ethic etrepreeurship characteristic of the Idia commuity. Fially, ad accordig to the iterviews, 7 etrepreeurship is also see as a last resort. I fact, immigrats who are uemployed or employed i precarious coditios tur to etrepreeurship because they have o other optios. Market Oliveira s study (2008a, p. 116) shows that migrat etrepreeurs ted to address their activities to customers of all atioalities or just to the Portuguese, as i the case of Chiese etrepreeurs. For Cape Verdias, the rate of co-ethic customers (10.6%) is higher tha i the other atioalities. Cape Verdia orietatio towards co-ethic customers is maily explaied by their presece i the eighbourhoods where there are a lot of Cape Verdias. Competitio Accordig to iterviews with migrat etrepreeurs ad to Oliveira s study (2008a, p. 121), 72.2% of Chiese etrepreeurs say they have to compete with co-ethics. Cape Verdias or Idias have more Portuguese competitors. Some 28.2% of Cape Verdia etrepreeurs say they have to compete with Portuguese busiesses, with 34.8% of Idia etrepreeurs sayig the same. Competitio is also depedet upo the type of activity. Cape Verdia etrepreeurs work maily i costructio, where may Portuguese also work. Workforce Accordig to the iterviewees, immigrat etrepreeurs rely heavily o family members help ad work. Those family members are, geerally speakig, upaid, which implies that there is a high degree of iformality amog the workforce. As oted i the sectio above o owership of ethic busiesses, migrat busiesses are maily very small or small eterprises. Oliveira (2008a) provides the followig distributio of migrat firms by the umber of workers for Cape Verdias, Idias ad Chiese cases: 8.5% without workers; 73.3% with ie workers or fewer; 16.1% with 10 to 49 workers; 1% with 50 to 99 workers; 1.1% with 100 or more workers. I Oliviera s study, the atioalities with busiesses that have more workers are Cape Verdias, while Idias ad Chiese have fewer workers. 7 ANDC, Jesuit Service to Refugees. 22 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012

23 Case study: Lisbo, Portugal The atioality of workers differs accordig to the origi of the particular migrat etrepreeur. Accordig to Oliveira (2008a), for istace, the Chiese rely more ofte o co-ethic workers (52.4%), while Idias rely more o o-coethic workers (70.4%). The reasos give by the Chiese for this are that it is easier to work with co-ethics because they share the same cultural codes ad the same laguage. Idias do ot rely o co-ethic workers because they fear that co-ethic workers may lear the busiess ad start up i competitio. Employmet coditios ad labour relatios I her aalysis of three distict migrat groups (Cape Verdias, Chiese ad Idias), Oliveira (2008a, p. 97) foud a widespread iformality of work cotract, eve if with differet rates accordig to the atioal group. For istace, the Chiese have more workers declared to the social security system tha Cape Verdia etrepreeurs. I fact, 70.9% of Chiese etrepreeurs are recorded by the Oliveira research (2008a ad 2008b) as declarig their workers to the Portuguese social security system. It has to be added that it is commo for these firms also to use members of their family as upaid workers. I the costructio sector, where there are may Cape Verdias, iformality is high, especially due to subcotractig procedures. As may immigrat etrepreeurs rely o family members, there is a substatial proportio of upaid workers. Accordig to the iterview with the workers uio CGTP, the level of uio membership amog migrats workig for other migrats is rather low. The Geeral Cofederatio of Portuguese Workers (CGTP) says this is because i migrats micro- ad small eterprises, labour relatios are o a differet footig tha those i most such eterprises. Migrat workers ad their employers have a relatioship characterised by pateralism ad depedece. As may migrat workers are frieds or relatios of their employer, labour relatios ca be somewhat difficult. Problems ad barriers Geeral maagemet Accordig to Oliveira (2008a, p. 82), almost half the migrat etrepreeurs for the three origis cosidered (Cape Verde, Chia ad Idia) said they had ot ecoutered ay problems i startig up ad ruig their busiess. The other half fid problems i the followig areas: lack of customers; fidig appropriate premises; gettig loas; racism or/ad discrimiatio; bureaucracy. Accordig to a iterview with a represetative of the Portuguese Cofederatio of Small ad Medium Eterprises (CPPME), the Chiese rely o their embassy to develop trade activities, which is ot the case with other migrat atioalities. The iterest of the Chiese embassy i helpig its co-atioals is ot explaied i the iterviews, but it ca be said that there is a proactive policy from the coutry of origi to help its migrats abroad. Europea Foudatio for the Improvemet of Livig ad Workig Coditios,

24 Ethic etrepreeurship Fiacial maagemet Fiacial maagemet is a problem for the iterviewees. They say they had to rely o experts durig the first years of settig up i busiess i order to uderstad the procedures ad to preset data to the authorities for tax purposes. The iterviewees 8 also refer to the lack of iformatio available about loas or other fiacial help for migrats. Ideed, migrats are uaware of the mai activities promoted by istitutioal actors to help the developmet of eterprises. Iterviews also show that migrats do ot atted officially orgaised iformatio semiars ad fiacial maagemet traiig. As Oliveira stresses (2008a), migrats rely mostly o idividual, family or commuity fiacial help to set up a busiess. I the case of the Natioal Associatio for the Right to Credit (ANDC), i 2009, oly 15% of those who obtaied a micro-loa were migrats. Ledig is coditioed by the legth of the migrat s residece permit, ad migrats with a oe-year permit fid it difficult to obtai a loa because of the guaratees the bak requires. Moreover, accordig to the ANDC iterview, baks are reluctat to led to immigrats because they doubt the migrat will stay i Portugal. This applies particularly to Brazilias, who have a high level of mobility. From the iterviews it ca be said there are two mai Portuguese atioal baks coected to private ad public etities which promote etrepreeurship: the Caixa Geral de Depositos ad the Baco Espirito Sato. Marketig Accordig to the iterviews, ad also takig ito accout the Oliveira research (2008a), migrat etrepreeurs do ot egage i marketig. Before settig up i busiess, for istace, migrats geerally speakig do ot egage i market research. However, accordig to Oliveira (2008a), Chiese migrats do coduct market research i the area where they wat to ope the busiess. They fid out how may restaurats there are ad if there is potetial for a Chiese restaurat or busiess. Noetheless, Oliveira s study does ot explai why some migrat groups do market research while others do ot. Some istitutios, such as the Natioal Associatio of Small ad Medium Eterprises, provide marketig advice, but migrats do ot rely o them. There is a clear lack of iformatio amog migrats regardig the help available from istitutios. Accordig to the iterviews with migrat etrepreeurs, they advertise their busiesses i their ow social etworks ad immigrat ewspapers whe they have cliets who are co-atioal, such as Cape Verdias or Bagladeshis. Otherwise, they do ot target the broad populatio with advertisig but istead rely o the locatio of their busiess to brig i custom. Ideed, immigrats try to ope busiesses i places where there are o other similar busiesses. This is the case, for istace, for migrat restaurats, or the laudry busiesses of some PALOP migrats. Rules ad regulatios Accordig to Oliveira (2008b, p. 113), there is a relatio betwee successive Portuguese immigratio laws ad the rates of immigrat etrepreeurship: it is possible to idetify three periods i the Portuguese legal framework that have impacted upo the evolutio ad chages i immigrat etrepreeurial iitiatives: (I) the first period essetially covers the 1980s ad 1990s, util 1998; (II) the secod, from 1998 to 2007; ad fially, (III) the third period from 2007 o. 8 ANDC, IEFP, Service Jesuit to Refugees, AERLIS. 24 Europea Foudatio for the Improvemet of Livig ad Workig Coditios, 2012