As a former international founder in the UK, I have written several articles about immigrant entrepreneurs. In this one, I will look at their importance from a UK perspective. The UK’s political and economic landscape has rapidly shifted in the last decade. Moreover, preserving its benefits for international entrepreneurs is vital to the UK’s future success. 

Immigrants are much more likely to become entrepreneurs. This is a hypothesis that I examined in several other articles on my blog, most notably:

In the context of the UK, the key points covered in my previous research may be applicable. However, identifying the importance of immigrant entrepreneurs to the UK benefits from highlighting the key factors signifying this importance. 

These are namely:

  • Innovations & new solutions 
  • Global challenges 
  • Immigrant entrepreneurs’ role in the UK’s top companies 
  • UK’s global position 

Global challenges

We live through a historical period in which the problems facing humanity are, by their nature, global. 

Examples include international terrorism, climate change and so on. 

As we are on the topic of climate change, allow me to introduce you to the concept of “climate refugees” 

For many, the issue of migration and displacement is automatically contextualised as a political one. However, this is an incomplete perspective and ignores the increasing roles of other issues such as climate change. 

According to a report published by the International Organization for Migration (IOM), there will be an estimated 25 million to 1 billion displaced people, solely due to climate change, by 2050. 

Additionally, UNESCO has predicted that displacement will be a primary cause of displacement within the following decades. 

<< Read full report>> 

By 2050, there will be between 25 million to 1 billion displaced people due to climate conditions.

The International Organization for Migration (IOM)

Innovations & new solutions  

Global challenges require global solutions. Restrictive measures, enacted through policy and other means, pose the risk of harming global innovation. 

Immigrants, nomads and displaced people are problem-solvers by nature. Their realities are formed by unique events and challenges. The latter are beyond what is interpreted as “ordinary” for most people in the “developed” world.

For instance, let us look at an article by Stanford Graduate School of Business. 

The article examines 880,000 patent registrations between 1990 & 2016. The research found that patents by immigrants outmeasured the native groups both statistically and in terms of quality.

Despite comprising only 16% of inventors, immigrants were responsible for 23% of patents issued.

This study may be contextually and geographically limited to a specific area/nation. 

However, it supports the broader argument that innovation and creativity are skills that are highly evident among migrants and displaced people. 

The succeeding point about immigrant entrepreneurs in the UK will support this hypothesis. 

Immigrant entrepreneurs behind the UK’s top companies 

Similar to the US, immigrant entrepreneurs in the UK proportionally outsize the local population. 

In a research/study conducted by The Entrepreneurs Network (TEN), it was observed that foreign-born founders or co-founders accounted for 39% of the top 100 fastest-growing enterprises in the UK.

The UK’s global position 

The UK’s global standing as an entrepreneurial ecosystem and a business-friendly nation is closely tied to immigrant entrepreneurs. This connection remains significant in the long term. Therefore, the formation and structure of the UK’s visa policy hold critical importance.

Immigrants, nomads and displaced people show high tendencies towards entrepreneurship. This is inherently valuable and must be utilised for the betterment of the world.

However, the current global visa regime has a long road to adapt to the premise of immigrant entrepreneurship.

About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business, StudyFlats. I did so by obtaining an endorsement from Newcastle University under the Tier 1 Graduate Entrepreneur Scheme. Subsequently, I obtained a further 3-year Tier 1 Entrepreneur Visa (replaced by the Innovator Founder Visa). I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) in the UK. I now help other migrant entrepreneurs, such as myself, with their businesses, and mainly with obtaining endorsements from the endorsing bodies.

References

  • Enterprise Nation. (2023). Foreign-born founders run 39% of the UK’s fastest growing businesses. [online] Available at: https://www.enterprisenation.com/learn-something/foreign-born-founders-39-per-cent-uk-fastest-growing-businesses/ [Accessed 17 Mar. 2024].
  • ‌International Organization for Migration (IOM) (2014a) Outlook on migration, environment and climate change. Geneva: IOM.
  • ‌Stanford Graduate School of Business. (2022). A New Look at Immigrants’ Outsize Contribution to Innovation in the U.S. [online] Available at: https://www.gsb.stanford.edu/insights/new-look-immigrants-outsize-contribution-innovation-us.
  • The Entrepreneurs Network. (n.d.). Job Creators 2023. [online] Available at: https://www.tenentrepreneurs.org/job-creators-2023-1.
  • Unicef UK. (2024). Climate migration and education: are we making our education systems future-proof? [online] Available at: https://www.unicef.org.uk/policy/climate-migration-and-education/.