Money alone is not enough. Also, not for young refugees and migrants aspiring to become self-employed. They might be the necessary to survive, the idea to explore an opportunity or the aspirations towards growth and expansion like any other entrepreneur. Likewise, there are various forms in which they will become self-employed: it might be solo or hybrid self-employed, a micro or small enterprise, and even a medium sized one. Ans in all cases (external) financing will be needed to start and develop the new ventures but knowledge as well how to use it. The aim to the Young Migrant Entrepreneurs Capacity Building project (in brief YMCB in this guide) is to develop an innovative approach to support young migrants’ entrepreneurship through a combination of education, training, and mentoring. The overall connotation is that access to finance deals with the possibility that individuals or enterprises have to access financial services, including credit, deposit, payment, or insurances provided by third parties – formal and informal. Poor access to finance limits individuals, households, and entrepreneurs to function. Access to finance is expected to benefit society at large by accelerating economic growth and helping to raise income for those in the lower end of the income distribution pyramid in reducing income inequality and poverty. But that is only one face of the same coin. Over the past years it has become evident that effective access to finance is determined by: - How well-prepared the prospective migrant/refugee entrepreneurs are to get started - The level of preparation of trainers and coaches working with migrant or refugee entrepreneurs and how well they understand the context their clients live and operate - The level of understanding of staff for FI’s and the degree to which appraisal procedures do not automatically exclude this group as potential clients
This report maps different programs that supportrefugees on the road to entrepreneurship. The municipality of The Hague, along with the refugee and migrant support organization EnterStart (MigrantINC) asked for an evaluation of the program The Hague Test Garden (from now on called The Test Garden) where refugees can ask for help starting their own businesses. The evaluation is not just based on the experiences in The Test Garden; other programs have been included in the evaluation to come to a broader view of the road to entrepreneurship and the obstacles encountered. The increased inflow of refugees in Dutch society and on the Dutch labor market has generated different support programs for starting-up a business. Some of these programs already existed but shifted to accommodate the needs of this specific target group. Other programs were initiated to support refugees because of perceived barriers in Dutch society. Most programs are private initiatives, funded on a project basis. In the Netherlands, refugees that hold a residence permit are called ‘status holders’. Upon arrival, they received a temporary permit for at least five years. They need to follow a civic integration and language program and they are expected to be part of the (regular) education system or labor market as soon as possible. The Test Garden started in 2016, a time when multiple support systems for refugee-entrepreneurs began their programs. This report starts with a short overview ofrefugee flows to the Netherlands. The main part of the report consists of the comparison and evaluation of the different programs. The information was gathered through literature, websites, and in-depth interviews with program managers and others involved. Interviews with the participants are only included for The Test Garden (Appendix 1 gives an overview of the meetings and interviews). LinkedIn: https://www.linkedin.com/in/karijn-nijhoff-89589316/
Are migrant entrepreneurs innovative with their business ideas and practices? The introduction of novel business ideas would provide migrant entrepreneurs with a cutting edge advantage against competitors, but the research about this topic is thin on the ground. I propose that the opportunity of migrant entrepreneurs to introduce an innovation is better understood by a closer look at the business idea itself and to which extent it is innovative; by considering the contextual factors where the opportunity structure influences the development of migrant businesses; and by the existence of social connections to share resources and information among entrepreneurs. Such complementary concepts - combining the interaction of the social, human, cultural and financial resources of individual migrants in relation to the wider opportunity structure - provide a comprehensive understanding of the opportunity for entrepreneurs to innovate. By using those contributions as conceptual building blocks, I propose the use of innovativeness levels for migrant entrepreneurs following the processes of adaptation and massification of goods and services introduced by migrants over time. This article builds from existing frameworks: contributions about the definitions and typology of innovation; the mixed-embeddedness approach, which has been largely used to study the opportunity structure; and the model of diffusion of innovations which pays a larger attention to the product and the agency of actors.
