CLIP – Ethnic entrepreneurship

CLIP’s fourth and final research module provides an overview of policies and programmes for the promotion of ethnic entrepreneurship as part of a local economic development and integration strategy for migrants. Its findings are based on the contributions from 28 European cities.

Ethnic entrepreneurs contribute to the economic growth of their local areas, often rejuvenate neglected crafts and trades and increasingly provide higher value added services. They offer a wider range of services and products to immigrants and the host population and create an important bridge to global markets. Ethnic entrepreneurs are also important for the integration of migrants into employment. However, the potential of ethnic entrepreneurship as a creator of jobs is largely overlooked. It can be instrumental in reducing unemployment and providing opportunities to more vulnerable groups (such as women or youth from specific ethnic groups) helping them to get out of the poverty trap.

At present ethnic entrepreneurship is not an important part of the European integration policy for migrants. Entrepreneurship is not only about job creation. It can enhance social opportunities for migrants, create more social leadership, increase self confidence and promote social cohesion within ethnic communities by revitalising streets and neighbourhoods.

The following table presents some of the specific recommendations from the module on ethnic entrepreneurship:

Module on ethnic entrepreneurship
For European policymakers
- Use the potential of ethnic entrepreneurship for more economic growth within the EU 2020 strategy
- Help increase long term employment rates by more support for ethnic entrepreneurship
- Recognise ethnic entrepreneurship in the integration strategy for migrants
For EU Member States
- Recognise and promote ethnic entrepreneurship as part of the wider integration policies
- Review regulatory and structural framework for setting up businesses
- Boost awareness and strengthen the capacities of intermediary organisations
For local policy makers
- Include ethnic entrepreneurship in the overall intergation strategy for migrants
- Cities should work towards a better co-operation between different departments within the city administration
- Support better access to credit


The overview report Promoting ethnic entrepreneurship in European cities presents successful practices and strategies from the participating cities. Case studies from the 28 cities in the network are available for download.