How are migrants’ contributions to the local economy perceived?

Media representations of migrants have often emphasized a status of emergency of migratory movements. Yet, migrants’ contributions to the local economy and community are often key, despite the challenges migrants face.

Dr Cinzia Priola, Senior Lecturer at Open University, has recently discussed this in a blog post on “Diversity, migrant entrepreneurship and socio-economic inclusion”:

“The entrepreneurial milieu is harsh and competitive and relies on economic, social and cultural capitals that generally migrant entrepreneurs lack for obvious reasons. In spite of these inequalities among migrant and native entrepreneurs in accessing funds and venture capitalists, and systematic formal and informal networks of support, migrant entrepreneurs often demonstrate the determination and tenacity to survive and prosper. “

In sum, migrants are mostly successful in providing jobs and services to the local community and foster cohesion in the communities in which they operate.

What can governments and societies do to support this important group of entrepreneurs? Key suggestions from Dr Priola for policy makers include:

  • Increase awareness of the positive economic and social role that migrant entrepreneurs play in the country where they operate
  • Be proactive in developing strategies for growth and social inclusion
  • Foster the development of inclusive entrepreneurial ecosystems
  • Focus on the integration of categories of diversity (including race, gender, class, nationality, levels of ability, age and so forth) in inclusive strategy for entrepreneurial growth.

Impact of business accelerators and incubators in the UK

The first report of its kind to analyse the impact of accelerators and incubators in the UK  is out now! Click here for the full report.

The report written for for the Department of Business, Energy & Industrial Strategy (BEIS) highlights the contributions and spillover effects of business accelerators and incubators.

Key findings from the report:

  • Incubators and accelerators contribute significantly and even vital to a start up’s success
  • Most common types of support received as part of incubator and accelerator
    programs are: access to peers, mentoring, business skills development and coaching
  • Business skills development and access to
    potential investors are the most important benefits to startups, according to accelerators and incubators
  • Direct funding from the program (in the form of grants or investments) is the most valued support by startups

The report also discusses findings on how accelerators and incubators change the surrounding ecosystem. However, LEPs often would like to be given a bigger role in the strategic planning of incubators and accelerators in their regions.

What are the biggest challenges for accelerators and incubators?

The report suggests that incubators and accelerators see the cost of financing programs as the biggest barrier to having more impact, with the availability of quality ventures and availability or cost of suitable premises being another key challenge.

Productivity divide?

A recent article from the BBC highlights once again issues dividing the U.K., but not simply in terms of the North-South divide:

London is producing goods and services worth £26,000 more per person than the per-head average of the North West, North East and Yorkshire regions. In absolute terms, this gap has almost doubled since 2001 (Charlie McCurdy, BBC news)

What the article suggests is that the problem is not individual productivity (how productive a worker is), but more about how the most productive sectors tend to be concentrated in the South of England, such as finance and technology.

At the same time, many other gaps are emerging.

The rural-urban gap has closed since the growth of jobs in urban areas since 2009. The regional gap however persists, more within than across U.K. regions.

For more information, see the Office for National Statistics Labour productivity data available here.