UK Refugee Entrepreneurship Pilot Scheme

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The UK Refugee Entrepreneurship Pilot Scheme was a year-long program launched in July 2019 aimed at supporting refugee entrepreneurs in their business ventures.
What are the main aims and objectives?
The UK Refugee Entrepreneurship Pilot Scheme was primarily designed with two main objectives. The first goal was to support refugee entrepreneurs in achieving their business aspirations. This was done by helping 30 refugees from idea to business launch over a 12-month period in each of the four business support organizations commissioned across the United Kingdom. The second aim was to trial models of business support to cater more effectively to individuals' unique needs. The initiative also sought to establish and promote refugee entrepreneurship programs across the UK. The successful pilot scheme served as both an evidence base and a detailed guide to aid the rollout of similar programs nationwide. 
How does the program work?

The UK Refugee Entrepreneurship Pilot Scheme was launched in 2019 with the purpose of assisting refugees in establishing businesses. To achieve this, a competitive application process was initiated by the Centre for Entrepreneurs (CFE). The scheme was carried out through four pilots, situated in Bristol, Belfast, the East of England, and Staffordshire. These pilots worked hand in hand with local businesses to deliver tailored start-up programs, assisting refugees from the idea stage to business launch. 

Pilot 1: ACH engaged with 30 refugees in Bristol and the West of England, predominantly from a Somalian and Sudanese background. Building on a previous research project, ACH supported refugees new to entrepreneurship; business owners ‘just about managing’ and looking to strengthen their foundations; and ambitious entrepreneurs looking to scale up. They offered a 12-month program with 1:1 bespoke support and business triage surgeries in the community. Additionally, they provided access to experienced business advisors.   

Pilot 2: East Belfast Enterprise provided access to professional development sessions, enterprise training, startup bursaries and mentoring support. The pilot also offered its 34 participants support to develop networks within the community, so that even if self-employment is not for them people will have access to further education and other employment opportunities. The program was split into 3 cohorts each receiving 4 weeks of training. Participants received business training for: business visibility, market research, marketing, sales and online promotion, personal budget, business cashflow, banking, tax and HMRC, funding sources and operations. They also received 1:1 business mentoring.  

Pilot 3: Serving the urban centers of Peterborough, Ipswich and Norwich, MENTA provided the 30 participating refugees with access to workshops, mentoring and peer-to-peer support groups led by local role models. This program – which lasted 12 months - was primarily target refugees who ran businesses in their home country, developing their expertise for the UK.  

Pilot 4: The Staffordshire Chambers of Commerce offered comprehensive support for 18 refugees building on extensive experience in business support. Drawing on their networks, Staffordshire Chambers of Commerce they delivered mentoring support via volunteer entrepreneurs. The program lasted 12 months including sessions that explore self-employment, a 10-week enterprise workshop, support for start-up grant funding and post-start mentoring support.  

What is the overall cost?
The pilot cost £360,300; £210,150 was covered by the Home Office and the remaining £150,150 was covered by The National Lottery Community fund. 
How was it implemented?

The CFE initially started work in the area of refugee entrepreneurship with a report in March 2018 called ‘Starting afresh: How entrepreneurship is transforming the lives of resettled refugeees. This report makes the case as to why refugees possess entrepreneurial traits, how they can contribute to the UK, and how providing tailored business support can benefit the UK as a whole.  

Following the report, they established the UK Refugee Entrepreneurship Pilot Scheme. The programs were overseen by the Centre for Entrepreneurs (CFE) and a national expert advisory group including representatives from the Home Office and The National Lottery Community Fund, refugee entrepreneurs, and experts from the academic and voluntary sectors. The evaluation of the pilots was conducted by Loughborough University.  

What impact has been measured?

An independent evaluation of the program was conducted by Loughborough University which found that: 

  • 112 refugees received business start-up training  

  • The success of the pilot helped three of the four bodies to secure a collective £1.7 million to expand support beyond the pilot locations 

  • Demand for targeted business support was high across all pilot locations 

  • Roughly even demand from men (53%) and women (47%) 

  • 86% of participants completed the program 

  • 26% of participants and registered a business by the end of the pilot 

  • 25% of participants were trading by the end of the pilot 

What lessons can be learned?

The pilot was widely seen to be a success and formed the basis of a recommendation for a national program of targeted refugee business support which was underpinned by the significant level of demand from refugee communities and that refugee business support successfully created new startups in a range of settings.  

Several recommendations were also made about the content of the business support: 

  • All pilots recommended that 6-12 months of startup support was necessary for meaningful change to take place 

  • Introductory sessions to how to do business in the UK (regulatory requirements, industry norms and social considerations) were seen as invaluable by most participants 

  • Mentorship was the key driver of positive outcomes during the pilots 

  • Startup finance remained a major stumbling block for the majority of participants due to lack of credit history, social underwriting and access to personal savings meant they struggled to access levels of capital typically available to startups.  

  • Greater access to startup finance would dramatically improve rates of business formation according to the four programs 

  • Personal support outside the remit of business-oriented organizations was also seen to be important for the refugee participants.  

CURATED BY

Matt Smith

Vice President
Global Entrepreneurship Network
United Kingdom