The number of immigrant entrepreneurs is increasing, due to difficulty in accessing salaried employment

The number of immigrant entrepreneurs is increasing, due to difficulty in accessing salaried employment
The number of immigrant entrepreneurs is increasing, due to difficulty in accessing salaried employment

In 2022, immigrants accounted for 17% on average of self-employed workers in the OECD area, compared to 11% recorded in 2006. Entrepreneurship offering foreigners an alternative to overcoming obstacles to paid employment by launching their own activity , according to an OECD report.

The number of immigrant entrepreneurs has increased considerably in OECD countries over the past fifteen years, a way for foreigners to circumvent the difficulties of finding salaried employment by creating their own business.

In 2022, 17% of self-employed workers in the 38 OECD (Organization for Economic Co-operation and Development) countries were on average migrants, compared to 11% in 2006. Thus, around one in seven immigrant workers was an entrepreneur, compared to one out of nine in 2006.

While immigrants are over-represented among the founders of some of the OECD's most successful companies, in virtually every country, immigrant businesses are smaller than those of native-born people operating in the same sectors, says report of the OECD published on Wednesday.

Nearly 4 million jobs created in 10 years

Migrant entrepreneurship helped create nearly 4 million jobs between 2011 and 2021. However, their contribution to employment is hampered by the fact that most of these entrepreneurs, whether born abroad or in the country, are self-employed without employees.

In two-thirds of countries, immigrants are on average more likely to be self-employed than the native-born. “A gap which is due neither to individual characteristics nor to the sector of activity,” note the authors of the survey.

New forms of work “worrying” for the OECD

Business creation, which remains a way “to circumvent the difficulties of accessing salaried employment”, is notably driven by the development of digital platforms, which make it possible to start an activity at a lower cost and to reach customers. potential “like never before,” notes the organization.

For the OECD, these new forms of work are “worrying” insofar as workers, whether born abroad or in the country, are declared as self-employed workers while their working conditions are, “in many cases, very close to those of employees”.

Entrepreneurship is more often “a necessity” rather than an “opportunity”, lamented OECD Secretary General Mathias Cormann at a press conference.

“They contribute a lot because they create jobs (…), but for some it is the only solution to earn their living and contribute to the economy,” added the director of employment and labor to OECD Stefano Scarpetta.

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