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Wednesday, January 19, 2022

Immigrant entrepreneurs: the obstacles they face and how to overcome them

Immigrants often do well in the business world. They are behind one in seven of all companies in the UK, where half of the fastest growing businesses have a foreign-born founder. In the US, 45% of the largest 500 companies were founded either by immigrants or by their children, including household names such as Apple, AT&T and Costco.

It may be that immigrants make for natural entrepreneurs, because the act of moving to a new country shows a willingness to take risks – a valuable trait for new business ventures.

But it is not easy to say. In addition to the challenges faced by indigenous entrepreneurs (e.g. red tape or funding), immigrant entrepreneurs have to deal with additional constraints due to their external status.

As a result, their future is heavily dependent on what we call the “institutional environment” – the legal and financial systems, and the various levels of government – ​​of a particular country. Our research examined some of the problems they faced.

The start-up visa program, for example, is a good way to attract enterprising immigrants with the potential to boost a country’s economy. At the moment, Canada, the UK and Singapore have successful systems that allow them to welcome business talent from all over the world.

Yet many countries – even the US, where immigrants set up 52% ​​of start-ups in Silicon Valley from 1995 to 2005 – have nothing to do with it. This may be one reason why the US share of global venture capital has fallen significantly over the past 15 years – from 84% in 2004 to 52% in 2019.

The EU doesn’t fare any better. While bloc countries share a similar migration policy for highly skilled workers and researchers from non-EU countries, this is not the case for non-EU immigrant entrepreneurs.

We also found that around the world, immigrant entrepreneurs have difficulty connecting to the financial systems of their host countries. Banks and other lenders are often reluctant to provide start-up capital and ongoing credit because it is difficult for them to assess immigrants’ financial histories and conduct credit checks.

Furthermore, immigrant entrepreneurs are sometimes maligned and portrayed as unwanted intruders who wall up indigenous businesses and take away jobs from citizens. The US has lost migrant entrepreneurs to other countries because of Donald Trump’s open hostility towards immigrants. This trend can have long term implications for job creation in the country.

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It is also true that many countries are incompetent when it comes to assimilating immigrant entrepreneurs, who have to learn to navigate new and different environments, both formal and informal. This includes disadvantages in terms of social capital, as they do not benefit from the support of immediate circle of family and friends.

celebration of success

Addressing the problems experienced by immigrant entrepreneurs will be highly beneficial for the economic development of the host countries.

For this to happen, our research shows that the start-up visa programs available in the UK, Canada and Singapore are essential, as are the removal of administrative formalities that harm entrepreneurs from overseas. The rhetoric around migrants should also be reduced and their contribution to society in difficult circumstances should be celebrated.

A world of moving thoughts.
Shutterstock/MetamoreWorks

Financial institutions in host countries may partner with those in immigrants’ home countries to conduct credit checks and report financial histories. Immigrant entrepreneurs can partner with citizens and organizations of the host country to build social capital. It can also help them assimilate and navigate unfamiliar and complex systems.

Finally, when immigrants are treated unfairly (their businesses often bear the brunt of xenophobic attacks) legal institutions must be quick to provide impartial judgments that promote immigrants’ confidence in a host country’s social structure. will help give

Eventually, people will move around the world, and immigrants will continue to bring new ideas and new business ventures wherever they go. More people than ever live in a country other than the country they were born in, and the “virtual country” of immigrants is the world’s fifth largest, with an estimated 272 million people. These immigrants can create more businesses, more jobs, and more wealth, if only the countries they travel to allow them to do so.

This article is republished from – The Conversation – Read the – original article.

World Nation News Deskhttps://www.worldnationnews.com
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