The EU legal framework for migrant entrepreneurship
The integration of migrants in the EU is a subject of national legislation and policy, but several EU directives set up common rules for employment of non-EU nationals that are compulsory, to be followed by the member states. With regards to entrepreneurship, there is no EU regulation specific to migrant entrepreneurship. The legal framework of entrepreneurship in the EU member states is broadly harmonized and it is based on the principle of freedom of establishment that guarantees open access to enterprise and that the same rules must apply to all entrepreneurs regarding the establishment and operation of their business.
Migrants in the EU face no restrictions in setting up companies and the data suggests that a substantial number of migrants start their own business instead of choosing to go into employment.
The freedom of access to local markets for migrant companies is further strengthened by EU policies. The promotion of entrepreneurship is incorporated in the Europe 2020 strategy and the entrepreneurship 2020 action plan, where one of the specific commitments is to facilitate entrepreneurship among migrants who are already present and residing in the EU, based on best practices from EU countries. The strategy focuses on the obstacles migrants face in starting and doing business, including their limited knowledge of and lack of information about the culture of business and regulatory environment of the host country, as well as the administrative and socio-cultural difficulties of running the business. Access to finance is not mentioned in the strategy as a main obstacle to migrant entrepreneurship. The EU focuses on policies aiming at effective and targeted business support schemes.
No legal restrictions are implied at EU level for migrant entrepreneurs to start and conduct business, but the must have legal status and a valid residence permit. The legal framework for migrants’ residence is subject to different practices in the respective member states. Furthermore, the different categories of migrants have different starting points with regards to accessing entrepreneurship support. In general, migrants who have residence in the recipient country could start businesses, except in the case of large investors who are granted status due to their large investment.
In the case of humanitarian migrants, there is EU regulation on their access to labor markets and entrepreneurship. The Receptions Conditions Directive (2013/33/EU) sets out the rights of asylum seekers and refugees and is applicable at national level. This includes a transition period of no more than nine months from the lodging of an asylum application until access to the labor market is granted. The same applies to entrepreneurs. It must be noted that this timing is not always adhered to at national level, and examples of this have been noted in the UK.