NEW RESEARCH | How policymakers should support refugee entrepreneurs in rural areas – concrete framework

Many factors influence the challenges and opportunities faced by refugee entrepreneurs. Researchers at Halmstad University have developed a concrete framework for rural decision-makers to use to support the group.

Individual characteristics, social network and industry are examples of personal and business-specific factors that affect refugees’ ability to start and run businesses in rural Sweden. Social circumstances, such as national politics and cultural norms, also play a role, according to Ghazal Zalkat, who is about to defend her PhD at Halmstad University.

– It is extremely individual, based on who you are and what your background is. “Gender, age, religion, migration status and previous experience interact at multiple levels and shape social inequalities,” she says.

Prejudice creates a distorted self-image

For example, women from certain ethnic backgrounds find it difficult to access funding due to gender and ethnicity bias. And the stereotypes and preconceptions that individuals face easily create a distorted self-image that spills over into how the individual is perceived by customers, suppliers, investors and other stakeholders.

– Who you are and the qualities you possess also influence the type of business you start, the network you have and the support you receive from institutional actors and public programs. People also have different resilience and coping strategies to deal with the challenges associated with their identity,” says Ghazal Zalkat.

More effective policies for success

The conceptual framework developed by Ghazal Zalkat is intended to provide decision-makers with a structured approach to developing evidence-based policies that meet the heterogeneus needs of refugee entrepreneurs throughout their business journey.

– This allows policy makers to design more inclusive and effective integration policies that support success and contribute to economic growth and societal development.

Three levels to consider

The study includes several rural agricultural and food businesses, showing that the context presents both opportunities and challenges for refugee entrepreneurs.

– Rural areas that offer job opportunities for refugees with knowledge and experience in agriculture are often more welcoming than cities. At the same time, technical problems and distribution challenges are more common in rural areas,” explains Ghazal Zalkat.

When designing policies for refugee integration through employment, municipalities and regions need to take into account factors at the individual, company and environmental (institutional) levels, says Ghazal Zalkat.

– Refugees bring different experiences, education and creativity from their home countries. The individual’s situation and motivations are important to identify. Only then can we develop appropriate interventions for entrepreneurship and enterprise. For example, those who want to start and develop something in food production need to develop knowledge in hygiene and safety,” she says.

Successful cultivation plots

Some municipalities offer a piece of land to grow and test new crops. Such initiatives at the individual level have been successful. It helps refugee entrepreneurs set up businesses while learning how the system works. Several entrepreneurs have since developed their businesses.

At the business level, society needs to take into account that the group has limited access to business networks. Nor can they control economic conditions or the rules and regulations that govern how they can produce, market and sell their services/products.

– The weather and access to farmland are factors that the entrepreneur needs to relate and adapt to as needed,” explains Ghazal Zalkat.

At the institutional level, the challenges for refugee entrepreneurs relate to laws, permits and regulations.

– Refugee entrepreneurs, such as those working in agriculture and food in rural areas, find it difficult to navigate this and need a lot of support.

The right support at every stage of your business

Local and regional decision-makers should take a long-term perspective on integration and provide the necessary support for each individual business phase. For example, in the start-up phase, policy makers should focus on individual characteristics, such as education and previous work experience. This makes the support more relevant.

– In the beginning, refugee entrepreneurs are lacking all kinds of resources. Therefore, they need support in the form of training and advice to overcome institutional challenges. Access to loans from various funding sources such as Almi or commercial banks is essential to get started.

– They often come up with their own solutions to get started, many niche in a certain type of product, perhaps from their home country, which they sell to compatriots in Sweden. But usually they need help with social media marketing during start-up,” explains Ghazal Zalkat.

Reasons for leaving entrepreneurship vary

The thesis shows that there are several different reasons why refugee entrepreneurs liquidate their businesses. Some know too little about the market, others lack business planning or have financial problems. And there is every reason to think more about why refugee entrepreneurs close their businesses.

– They may also lack digital skills or want to move to another sector once they have gained good business experience.

– By taking into account the individual characteristics and needs of refugees throughout their business journey, more businesses will succeed and contribute to economic growth and social development,” said Ghazal Zalkat.

Contact ghazal.zalkat@hh.se

Read also:
How highly educated migrants succeed in entrepreneurship
How migrant entrepreneurs get funding
Refugees not fit to become entrepreneurs
Tough life as a self-employed person is inherited