1. March 2014
Diversity in the Economy and Local Integration (DELI)
context & concepts

2. SUPPORT TO
MIGRANT-OWNED
BUSINNESSES

3. Why support migrant-owned businnesses? (I)
20 000
40 000
60 000
80 000
100 000
120 000
1998-2000 2001-2003 2004-2006 2007-2008
Average yearly number of new entrepreneurs, foreign-born, 1998-2008 - OECD
Austria
France
Germany
Italy
Netherlands
Spain
Sweden
United Kingdom
Because more and more migrants create businesses:

4. Why support migrant-owned businnesses? (II)
Because more migrant-owned businesses means more jobs for all:
100
200
300
400
500
600
700
800
1998-2000 2001-2003 2004-2006 2007-2008
Persons employed in firms of immigrant entrepreneurs, 1998-2008, thousands - OECD
Austria
France
Germany
Italy
Netherlands
Spain
Sweden
United Kingdom

5. Why support migrant-owned businnesses? (III)
Because migrant-owned businesses have a decisive impact on the
local economy:
Companies with a migrant background
make up 30% of the local economy in Vienna
In Munich, there are over 12,000 immigrant-run
businesses that have resulted in the employment of
over 100,000 people from all sectors of life
Not just ‘pizza & kebabs’: immigrant entrepreneurs work in ICT,
consultancies, transport, financial services, etc.

6. Why support migrant-owned businnesses? (IV)
• Because helping immigrants to fulfil their business aspirations and
to be part of the mainstream economy fosters their social
and cultural integration; strengthens their potential to
contribute to democratic life in society as active citizens; and
provides inspiring role-models to future generations.
• Because setting the conditions for entrepreneurship to strive
among immigrant communities help to make cities more
open and dynamic and strengthens their international
outlook.

7. Support migrant-owned businnesses: how
• Mapping and needs assessment of immigrant entrepreneurs
• Support from leadership and inter-departmental work for
immigrant entrepreneurs
• Services offered by a business support centre (coaching,
financing, mentoring, training etc), including their monitoring and
evaluation
• Cooperation with external stakeholders
• Recognition of immigrant entrepreneurs (awards, prizes, etc),
including role-model activities

8. SUPPLIER DIVERSITY

9. ‘Supplier diversity’ is the proactive activity undertaken
by purchasing organisations to ensure that all relevant,
potential suppliers, including immigrant entrepreneurs,
have the fair and equal opportunity to compete
for business within their supply chains.
Supplier diversity is not about preferential treatment or
quotas.
Introducing ‘supplier diversity’

10. Supplier diversity…
• …addresses inequalities in visibility and access to information
• …seeks to ensure that all businesses have free and fair opportunity to
compete for places in a supply chain.
• …includes but is not limited to micro and small migrant-owned
businesses:
 A migrant-owned business is an independent business that is at least
 51% owned and controlled by one or more migrants; and whose
management and
 Daily operation is controlled by one or more of the migrant owners
 A micro business is comprised of less than 10 employees
 A small business is comprised of less than 50 employees

11. Supplier diversity: benefits for cities (I)
From a socio-economic perspective:
• It helps to bring economic growth to deprived areas
• It provides economic opportunities to the migrant population
• It builds harmonious communities through social inclusion
• It creates good public relations for municipalities (as a large
employer in an area) and demonstrates investment in the migrant
community – as an economic asset rather than a drag on public
provisions.

12. From a procurement perspective:
• Migrant suppliers’ knowledge about their communities; they are well-placed to
appreciate and satisfy their community’s preferences -this is particularly
relevant where specialised products and services are concerned
• It creates a wider candidate pool brings wider choices which brings access to
innovation and flexibility into supply chains
• It aligns supply chains, products and services with increasingly diverse
communities and service users
• It extends workforce equalities and diversity activity to the supply chain
• It stands as a tangible example of Social Return on Investment
Supplier diversity: benefits for cities (II)

13. Supplier diversity: benefits for the private sector
• It aligns supply chains, products and services with increasingly diverse consumers
and potential clients
• It creates a wider candidate pool which provides wider choices which in turn brings
access to innovation and flexibility into supply chains
• It extends workforce equalities and diversity activity to the supply chain
• It mitigates reputational risk and enhances reputation
• It stands as a tangible example of Corporate Social Responsibility (CSR)
• It supports EU and national legislation on anti discrimination, equality and diversity
policies and internal equality and diversity policies
• Public sector clients may require private sector suppliers to push certain social
obligations through their supply chains e.g. social issues, equalities and
sustainability
• The local knowledge of migrant suppliers about their communities means that they
are well-placed to appreciate and satisfy existing and potential customer needs

14. • Migrant businesses often lack the relevant information and capacity to bid for
public or private sector contracts.
• There is a lack of awareness among large purchasing organisations, including
public sector organisations, of the potential migrant-owned supplier base and
an inability of these businesses to identify and exploit opportunities in
mainstream corporate and consumer markets.
• There is a perception among established migrant entrepreneurs that contract
opportunities are not being made available to them even though they have the
capability to deliver contracts
Supplier diversity: benefits for migrant businesses

15. DIVERSITY &
EQUALITY CLAUSES IN
PUBLIC CONTRACTS

16. Public procurement – why should we care? (I)
Thresholds – EU rules & national rules
Public procurement globally accounts for about 17% of EU
GDP - a sum equivalent to half the GDP of Germany
Local authorities issue 30% of procurement notices that
fall under EU rules

17. Public procurement – why should we care?
Buying goods and services in a socially
responsible way is a democratic duty for public
authorities. People expect governments to spend public
money in a way that serves the public good, particularly at times
of economic crisis.

18. Using social clauses…
‘Social clauses’ require contractors to employ persons who are in a
disadvantaged position on the labour market.
• No EU statistics on socially responsible procurement.
• In France, social clauses are included in 4.3% of public contracts
above 90K€ in 2012, up from 1.9% in 2009. Local authorities are
in the lead: 7.3% of their contracts include a social clause.

19. …and diversity and equality clauses
Diversity and equality clauses require contractors to change
their employment practices and to develop diversity and
equality policies that prevent discrimination and promote equal
opportunities.

20. Thank you for your attention
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