The hurdles immigrants come up against with, when wanting to start a business, give an indication of how strong their motivation must be. These hurdles include:
- Restrictive legislations relative to immigrants: the permit to be self-employed is particularly difficult to obtain in the countries of new immigration (Spain and Ireland).
- In other countries, access to certain professions may be denied from self-employed immigrants, or it may require diplomas from the host country.
- Administrative requirements: for all entrepreneurs, formalities and registration can be complicated, but these steps can be even more demanding for immigrants, with extra difficulties in getting foreign diplomas and skills recognized and in dealing with the paperwork.
- The inactivity trap: many immigrants, who are recipients of unemployment or welfare benefits, risk losing a minimal but secure income by becoming entrepreneurs. In addition, they may have to pay tax and social security contributions even before their business becomes profitable.
Immigrant Entrepreneurs: Challenges, triumphs and potential
As a reason for difficulties on the labour market, discrimination can be seen as a strong push factor to starting a business and can result in closer community ties. At the same time, it can cause problems at many levels when starting the business: when dealing with administration, owners of business premises, suppliers, clients, banks.