Refugees offer a source of untapped potential for the UK economy, according to new research launched today from The Entrepreneurial Refugee Network (TERN) and global financial technology company Square.
TERN estimates there are currently 26,500 refugee entrepreneurs in the UK, contributing £520 million to the economy, but with the right financial and coaching support, this could potentially increase to £5.1 billion.
The partnership aims to help refugee entrepreneurs access the tools, funding and long-term support needed to build sustainable businesses that contribute to the UK economy.
This includes point-of-sale (POS) hardware donations, running business-related masterclasses and providing support at TERN member events.
“Entrepreneurship is one of the strongest drivers of economic growth, but too many founders face barriers that have nothing to do with talent or ambition,” says John O’Beirne, CEO at Square International.
“Our purpose is to provide economic empowerment for all, ensuring everyone has access to the technology and finance solutions they need to start and scale their businesses.
“Our partnership with TERN and its community of refugee entrepreneurs will provide financial support and access to our services to give them the boost they need at the most vulnerable stages of business growth, ensuring they can build resilient businesses that contribute to local economies year after year.”
‘The Refugee Entrepreneur Opportunity’ report has revealed a gap between the entrepreneurial potential of refugees and the reality they face in setting up a business in the UK.
Refugees are rarely seen as supporting the economy, with just 7% of UK adults saying they see refugees as entrepreneurs and only 10% are seen as contributors.
On average, only 30% of people say they think refugees want to start a business in the UK, and only 26% think they already have.
Despite this, the British public is cautiously open towards refugee entrepreneurs, recognising they face greater structural barriers to launching a business.
More than a third (36%) say they support the idea of refugees starting businesses and 31% say they would be pleased if more refugees started businesses.
However, 56% agree that refugees face more structural barriers than UK-born entrepreneurs, citing language (45%), lack of access to finance (31%) and prejudice/discrimination (29%) as the biggest blockers refugees face when trying to start a business in the UK.
“Refugee entrepreneurs are skilled, creative and determined, but they often operate without safety nets or fair access to finance,” says Charlie Fraser, co-founder of The Entrepreneurial Refugee Network.
“Our work on the ground means we know how many refugees are looking to start their own business, so we’re focused on turning this potential into sustainable prosperity and growth for founders and the communities they serve.”
Respondents prioritised paying taxes, boosting the economy, and supporting integration into British society when asked what matters most about refugees starting businesses in the UK.
Founders consistently describe entrepreneurship as emotionally demanding but deeply purposeful and a way to rebuild stability, identity and confidence alongside income.
Alongside the research, in-depth interviews with refugee entrepreneurs reveal that many find sustaining their business once it’s set up is also harder due to a lack of confidence, mentorship and long-term support.
“Without a network or guidance, every decision you make as a refugee business owner can feel heavier,” says refugee entrepreneur Jasmine Abakarova, founder of Boemo, a street food business specialising in Italian bomboloni, who launched her business after receiving support from TERN.
“Every email and customer opinion hits you, and this can be especially tough with no financial cushion or family support and no margin for error.
“Having access to a strong network of people who can support your business with the right information and solutions is what makes the difference between success and failure.”