The potential profit to the UK economic system of refugee entrepreneurs is an estimated £2 billion if boundaries have been handled and extra tailor-made help was out there.
That’s the discovering of the Cedar Assessment, an unbiased overview into refugee entrepreneurship within the UK led by Small Enterprise Britain.
There are round 26,500 enterprise house owners from a refugee background within the UK, the report stated.
Greater than half of founders surveyed had run a enterprise earlier than arriving in nation, whereas 79% already make use of folks or plan to take action quickly, which the report stated: “highlights the numerous entrepreneurial expertise and ambition inside the refugee group.”
Nevertheless, the overview discovered that refugee entrepreneurs face a number of challenges together with prolonged restrictions on working and self-employment through the asylum course of.
Greater than a 3rd stated uncertainty round their standing within the UK was a key barrier when beginning a enterprise.
As of March 2026, refugees obtain 30 months of go away, renewable, with settlement on the core safety route requiring 20 years.
Nevertheless, the report stated industrial leases run three to 5 years, funding is contingent on payback durations and workers anticipate certainty.
Researchers spoke to a founder in Scotland who closed a espresso enterprise reasonably than make use of folks she couldn’t promise continuity to.
Entry to finance can also be an issue. With refugee founders arriving with out UK credit score histories, “lending methods learn that absence as danger reasonably than as lacking knowledge”.
Skylight, which lends to refugee entrepreneurs with out credit score checks or collateral, experiences a 95% compensation price and a 1.3% write-off price, higher than the broader CDFI sector.
The report discovered that those that do borrow face a niche within the center: microloans as much as £3,000, enterprise funding above £50,000, and a “capital desert in between, exactly the place a rising enterprise wants tools, inventory and workers”.
The overview additionally highlighted a niche in entry to enterprise help. Nearly three quarters of refugee entrepreneurs stated there was help they wanted however they might not entry it. The place help was out there and accessible, 67% of those that obtained it discovered it useful.
One other problem is public attitudes to refugees. Ipsos polling for British Future discovered opinion on immigration extra adverse in 2025 than it has been for a while.
The examine stated: “Founders should not working inside polling averages: many described the discourse reaching their enterprise instantly.
“This has a wider impact of damaging confidence: A founder who hesitates to determine themselves, value their work at its worth, or method a financial institution is a founder whose enterprise grows extra slowly.
“Confidence is just not a mushy add-on to entrepreneurship. It’s a enterprise enter, and one refugee founders are requested to construct in public, in opposition to a headwind most founders by no means face.”
The report made the next suggestions:
- Amend immigration guidelines so permission to work consists of self-employment (sole dealer registration) and lowering the ready interval to 6 months.
- Depend verified enterprise exercise as an financial contribution in direction of settlement.
- Publish a single, authoritative plain-language information to beginning a enterprise within the UK.
- Reform credit score and id checks to simply accept different proof of creditworthiness.
- Construct an accessible, coordinated funding ladder (spanning micro-grants to progress funding).
- Open entry to markets and provide chains via social worth procurement.
- Construct a navigated, 12-month end-to-end help pathway with mentoring from folks with shared expertise.
- Educate the language of enterprise alongside core ESOL modules.
Michelle Ovens, CEO and founding father of Small Enterprise Britain and co-chair of the Cedar Assessment, stated:
“Too usually, dialogue round refugees give attention to want, help and integration. Whereas these are undoubtedly necessary, they inform solely a part of the story. Refugees are additionally entrepreneurs, employers, innovators and creators of alternative.
“The Cedar Assessment underlines the drive and potential refugee entrepreneurs have however the proof introduced questions whether or not our methods are designed to recognise that.”
Anil Qasemi, founding father of Hatopia and co-chair of the Cedar Assessment, stated:
“Simply over 4 years in the past, I arrived within the UK from Afghanistan after the autumn of Kabul, and immediately I run a small enterprise that sells to prospects in additional than 30 international locations. Once I first began constructing hatopia alongside my day job, I had no concept the place to start and my confidence was low, however I knew I had a enterprise idea price pursuing.
“Somebody took an opportunity on me, and thru mentorship and accessing an interest-free mortgage, my enterprise started to develop.
“The Cedar Assessment reveals what refugee entrepreneurs can obtain when they’re given the chance and supported by methods that work for them, not in opposition to them. I’m excited to see what constructive change we will obtain because the work of the Cedar Assessment continues.”
