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Newcomers and entrepreneurship:
pathways towards self-reliance and autonomy
Report on the VU Refugee Academy meeting. December 1st, 2017. Location: Refugee Company
2
Table of contents
Introduction.................................................................................................................................3
A theoretical background on newcomers and entrepreneurship...............................................4
The joint research on the pathway to entrepreneurship for newcomers...................................7
Reflections by Halleh Ghorashi................................................................................................12
Conclusion................................................................................................................................14
Appendix....................................................................................Error! Bookmark not defined.
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Introduction
On December 1st 2017 newly arrived entrepreneurs, business incubators initiators, municipality
representatives, academics and many others came together to jointly research the pathway to
entrepreneurship for newcomers in the Netherlands. The goal of this meeting was to make new
connections, to reflect and to gain shared insights in what enabling and constraining conditions are in
becoming and being an entrepreneur in a new context and to explore possible durable solutions that
strengthen the steps on the entrepreneurial path for newcomers.
Many newcomers have energy, will and skills to start contributing to the host society from the very
beginning. However, they often do not have the needed documents, training and the network to enter
the labor market in the new context. Host societies, like the Netherlands, have become more and more
conscious of the idea that it is as well in our interest to include newcomers in socio-economic activity,
as soon as possible. But what if the pathway towards paid employment shows too many obstacles to
find a job that matches someone’s capacities? Or what if someone does not want to work for a boss?
During the meeting we explored an alternative path to socio-economic integration: the entrepreneurial
way. Entrepreneurs with a refugee background shared their experiences and ambitions, business
incubator initiators drew upon the chances and obstacles they meet in supporting new entrepreneurs
and representatives of the cities of Amsterdam and Utrecht clarified how they see their role in
stimulating self-employment among newcomers. In the present report, we will share the theoretical
framework we presented and the outcomes of the joint research that we conducted during this
meeting. Enjoy reading!
Refugee Academy:finding a sharedspace betweenthe extremes of negative stories and the “tyranny of the
good practice”
We aim to be a space for encounter betw een research and practice, in w hich w e can tackle different themes that are
crucial for reception, inclusion, and professional development of people that arrive in the Netherland as refugees.
To w ork tow ards inclusion, it is important to look at both sides: investing in individuals and their potential to contribute,
and investing in the context and its potential to enable and to include. Within the Refugee Academy, w e try to look at this
tension and reflect on how it unfolds in our society, to reflect together on the societalcontext in w hich w e are operating in
this moment, and to challenge each other to look beyond the taken for granted, to understand how some w ays to think, to
talk, to act can limit our effort to create inclusion and connection.
What has struck us, as a team of researchers, in this period, is the fact that w e seem somehow caught betw een tw o
extreme discourses (dominant images and stories) about refugees, that are opposed to each other, leaving little room for
w hat is in betw een. At the one side, there is a fixation on lack and shortcomings, one that as w e know from research has
a longer history in the Netherlands, but that in the last years has developed in an extremer negative version: Refugees
(and migrants) are portrayed as a big societalproblem, integration doomed to fail, etc. a lot of fear and negative feelings.
At the other side, there is also a strong resistance to this negative discourse. But w hat you see is that there is a strong
tendency to balance this negative stance w ith extreme positive examples: The big success stories, the positive side of
integration. People desperately w ant to see the counterexamples, the examples of those people that can show that
refugees are a w in for society, that they integrate perfectly and quickly. This is to balance the negativity in society, but
many organisations and initiatives that support refugees are dependent on these positive stories to show that they are
successful, to show their project is a ‘good practice’, because their very existence is insecure and dependent on the
approval of others (municipality, other funding parties). We could call this The tyranny of the ‘good practice’.
Of course, these success stories exist and it is great to make them visible. But the point is w e also need a space, a
shared space to talk about w hat lies in betw een this scary negative and extreme positive stories. About the small, every
day challenges, the small steps tow ards inclusion that both the individual and the context (be this an organisation, the
municipality, the community) can take.
4
A theoretical background on newcomers and entrepreneurship
In comparison to studies on refugee entrepreneurship, a larger body of studies on migrant
entrepreneurship has emerged the past decades. For that reason we will highlight theoretical insights
on the much-studied subject of migrant entrepreneurship. In order to clarify the terms used, ‘migrants’
are persons outside of their country for more than twelve months (Sasse & Thielemann in Baycan-
Levent & Nijkamp, 2009). The term ‘migrant entrepreneurship’ refers to first generation migrants who
start a business in the new context they are part of.
Migrant entrepreneurship in Europe and the Netherlands
Research on migrant entrepreneurship on a European level shows that migrants are more likely to be
self-employed than similarly skilled native-born workers and that the share of business ownership
among these groups is expected to continue to grow (Baycan-Levent & Nijkamp, 2009).
Zooming in further on the Dutch situation it becomes visible that in 2016:
o Migrant businesses make up 13,4% of all existing businesses
o Migrants started-up more than 21% of all new ventures
o People from Syria and Iraq form the largest groups within the starting group of entrepreneurs
(Kamer van Koophandel, 2017)
So, entrepreneurship is not a new solution or alternative, but a path that is often chosen by
newcomers.
Motives
To get more insight in why newcomers choose this adventurous path, it is needed to understand
people’s motives to start a business. Both literature (Sak, Kaymaz, Kadkoy & Kenanoğlu, 2017) and
our preliminary research, show two dominant patterns in the motivation to start. One is out of necessity
and one is out of vocation. During the preliminary research newly arrived entrepreneurs narrated that
they have not been able to find a place in labour market because they only got rejections and that they
could not find an opportunity that meets their ambitions. As well some people shared the fact that they
were entrepreneurs all their working life and not wanting to do anything different. Somebody else
expected to fulfil his dream in the Netherlands and aims to start a business to realize that dream.
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Conditions for entrepreneurship
What does theory on (migrant) entrepreneurship tell us about important conditions in the pathway
towards starting and running a business? The central insight is that these conditions are created in the
interplay between the individual entrepreneur and his or her multilayered context.
On an individual level it is possible to distinguish different forms of capital that one needs or that are
helpful in starting and running a business (Ram, Theodorakopoulos & Jones, 2008):
Social capital: having a social network enables opportunities. The more diverse the connections in
that social network (informal and formal), the more diverse opportunities one could encounter and
seize.
Human (or cultural) capital: having skills, experience, motivation and knowledge to start and run a
business.
Economic capital: having access to enough budget to both sustain oneself (and one’s family) and
invest in the needed company resources, like machines, a car, a computer, a location, etcetera.
At least as important is to see how receptive the context is that the entrepreneur is interacting with.
This context is multilayered. Three layers we will zoom in on here are:
The social context: how receptive is the Dutch social context to new entrepreneurs? For example
potential customers are being influenced by the polarized debate on migration. This could work out
positively, but as well negatively.
The economic context: how willing is the credit market to finance newcomers who start a business?
Also in this market stereotyping plays a constraining role for newcomers. Moreover financers are
hesitant to provide credit to people with a temporary status. Nonetheless there are banks, like Triodos,
who do finance entrepreneurial newcomers with a temporary status and a promising business plan.
The institutional context: in the Netherlands we live in a highly regulated country, with obligations
regarding to paying taxes, needed permits and certificates. Not having the know-how of these
regulations can negatively influence the start and running of a business – one can risk fines and
penalties when not complying to the rules.
(Sources: Ram et al., 2008; Kloosterman, Van der Leun & Rath, 2010)
6
So focusing on the level of the individual only limits opportunities for entrepreneurship and socio
economic integration, therefore it is crucial to take the receptivity of wider contexts into account.
Sources
 Baycan-Levent, T. & Nijkamp, P. (2009). Characteristics of migrant entrepreneurship in
Europe. Entrepreneurship and Regional Development, 21, 375–397.
 Kamer van Koophandel (2017). Jaaroverzicht Ondernemend Nederland. Retrieved from:
https://www.kvk.nl/download/Jaaroverzicht%20Bedrijfsleven%20Nederland%202016%20versi
e%20US7_tcm109-433766.pdf
 Kloosterman, R., Van Der Leun, J. & Rath, J. (2010). Mixed embeddedness: (In)formal
economic activities and immigrant businesses in the Netherlands. In Martiniello, M. & Rath, J.
(Eds.), Selected studies in International Migration and Immigrant Incorporation (pp. 315–337).
Amsterdam University Press.
 Ram, M., Theodorakopoulos, N. & Jones, T. (2008). Forms of capital, mixed embeddedness
and Somali enterprise. Work, employment and society, 2(3), 427-446.
 Sak, G., Kaymaz, T., Kadkoy, O. & Kenanoğlu, M. (2017). Forced migrants: Labour market
integration and entrepreneurship. (Working paper Nr. 2017-61). Retrieved from:
https://www.econstor.eu/bitstream/10419/169120/1/898550599.pdf
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The joint research on the pathway to entrepreneurship for newcomers
Together with the actors on stage and the audience we conducted a joint research. The three leading
questions were: “what are the most important needs and constraining conditions in the pathway to
entrepreneurship for newcomers?”, “what are the most important enabling conditions in the pathway to
entrepreneurship for newcomers?” and “what are durable solutions in the pathway to entrepreneurship
for newcomers?”
1. Panel discussion with new entrepreneurs
Salim Abbara (HS Verhuizingen) and Kamal Naji (Chef Kamal)
New entrepreneurs Salim and Kamal are both from Syria. Salim recently started a moving and
renovation company together with a business partner in Noord-Brabant and Zuid-Holland. Kamal is in
the process of starting a catering business in Amsterdam.
In the discussion, Kamal and Salim described conditions that were enabling for their pathway to
entrepreneurship. These conditions were mostly related to the social network they created in the new
context.
For example Salim started HS Verhuizingen with a business partner with whom he, in an earlier
stage, worked in another moving company. Both this former employer and his business partner are
now opening up opportunities by providing him with their knowledge, skills and support in finding
clients.
Kamal created a big network in Amsterdam when he started cooking daily for 320 temporary
inhabitants and people working at the Havenstraat [emergency shelter]. He set up a team and taught
them how to cook, he met a Dutch woman there who now helps him to start his business and he
initiated a Chef Kamal-Facebook page with many followers (and potential clients). Because of his
experiences in the Havenstraat and the opportunities he now gets in catering jobs, he gets a good
insight in what the Dutch market wishes for with regard to Syrian food. This is helpful in starting his
restaurant.
Another important enabler is feeling a real driving force for the job one is doing or aiming to do.
As Kamal shared in the interview preparing the meeting of December 1st, for him his love for cooking
and motivation to realize his dream (starting a restaurant) is his most important resource in the
process of entrepreneurship. “When I am in the kitchen I forget everything, all my problems. I cook
with all my heart.”
Constraining conditions, described by the two entrepreneurs, are not having the access to the
needed information on regulations, not being prepared for the new and different business culture in
the Netherlands and negative image formation of refugees.
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The entrepreneurs emphasized that newcomers need more information and clarity about the tax
system, bookkeeping and insurances. All the information is somewhere out there, but it does not
seem to reach the people who need it. For example because the information is in Dutch or people
don’t know where to find the information. However, Kamal explained that he has found a course
provided by the City of Amsterdam where he expects to get the necessary information. A friend of him
mentioned this workshop.
Moreover they know that many newcomers fear that their welfare will stop when they start their
business and earn their own money. What if running a business goes wrong? This is especially
important when the newcomer has a family who depends on the income of the entrepreneur. So more
information and clarity on the possibilities and regulations concerning welfare while starting a company
is needed according to the panelists.
Other constraining factors while running a business are shared by Salim. One is that the business
culture in the Netherlands is very different than the one he knows from Syria. He experienced a few
times that he was too trusting, this resulted for example in a situation that he did not get paid for his
services by a client and in another case that he got stolen. The other one is that he bumps into
negative stereotypes of (Syrian) refugees. The moment his potential customers see that he is Syrian,
people seem to hesitate and refuse to give him the job, he explained. “People believe that I cannot do
anything or they simply don’t want to give me the chance. The people don’t know enough who the
Syrians are and from where and what they come from”.
Ingredients for durable solutions that Kamal and Salim mentioned are related to creating more
diverse social networks around newcomers by connecting the ‘new’ entrepreneurial community to the
host entrepreneurial community. For example, Salim recently started the Social Centre for Syrian
Community (SCSC). This is a foundation that facilitates network meetings and connections with
Dutch entrepreneurs to share experiences of the Dutch business culture and knowledge on
opportunities and obligations. With this, newcomers can enlarge their social capital and create a
broader and more diverse network that is supportive of their business.
Background panelists
Kamal Naji: was a lawyer back in Syria, with a love for cooking. In Amsterdam he made work of this
passion and started to cook daily for all the residents and employees in the emergency shelter
Havenstraat he was staying in. Now he wants to realise his dream in the Netherlands. He works as a
caterer already - Chef Kamal - and aims to find a location to start a Syrian restaurant. He understands
the doubts of many newcomers who want to start a business: he has a family and needs to have a
secure income. The unclarity about keeping welfare is a reason for others to not start a business.
Kamal is nonetheless determined in making this step.
Salim Abbara: was a business owner in the hospitality industry in Syria. His company consisted of a
restaurant, a hotel and later on a space for art exhibitions. Soon after his arrival in the Netherlands he
wanted to start a job or internship. However, after applying for many different jobs and functions, he
always received a negative reply. Salim decided to take his fate in his own hands: he started an
internship with a moving company and a course on how to start a business. From there he set up his
own company, HS Verhuizingen. He works together with a partner and they have been supported in
setting up the business by the moving company they both worked for before. Recently he set up the
Social Centre for Syrian Community (SCSC).
9
2. Panel discussion with business incubator initiatiators
Christof Hawle (Delitelabs), Theo Huizing (LOMAX and the PIP Programme), Fleur Bakker
(Refugee Company) and Raquel Lorenz (Refugees Forward)
Discussing constraining factors in the pathway to entrepreneurship, the initiators confirm that the
fear of stepping out of welfare is one of the biggest hindrances for newcomers to become self-
employed.
As well the complex rules and regulations work constraining for aspirants. An attendee in the
audience notices that the Dutch system is not inviting to start a business and even hindering in taking
this step.
Moreover, the panelists mention that short term business support, in which people are being
warmed up to start a business but are left alone when they bump into the complex reality of running a
business in NL, is problematic. Starting a business is one, but running and retaining a flourishing
business in this complicated new context is another story. Both municipalities and business support
organizations should take this into account.
An enabling condition in the socio-economic integration of newcomers is becoming active in an
early stage when having arrived in the Netherlands. Fleur mentions that this makes a huge difference
later on. Because then you can start a network, experiment with what is possible and get an
understanding and a perspective on what one would like to do.
Christof and Fleur describe that forms of “safe spaces” are crucial in this early stage. Spaces
where the threshold for developing oneself and finding new and differentiated contacts is low.
“Learning by doing”, Raquel mentions.
Giving support in one’s own language and help in finding finance works enabling as well,
Theo describes. He says that the language might be different, but that in essence cultures and
mentalities do not differ so much. So why wait after somebody is ‘integrated’ and not start right away if
somebody has promising plans and a strong motivation?
Raquel states that the connection with Dutch people is essential in the startup phase. This is
confirmed by the others who describe that Dutch entrepreneurs have a network already while newly
arrived entrepreneurs only have limited contacts. Are there structures or ways to connect newcomers
with Dutch entrepreneurs?
Another central point we should keep in mind when creating support structures for entrepreneurial
newcomers, is that differentiated support is needed. Christof mentions that there are big differences
and differing questions among people who have no prior experience and for the ones who have an
entrepreneurial background already. He mentions as well that we should be aware of the fact that
entrepreneurship is a great solution for some, but not the best answer for everyone.
Furthermore, the Dutch system world needs more entrepreneurial spirit. Some civil servants in
municipalities do have the spirit; they are open for and stimulating in the entrepreneurial pathway by
10
connecting the right actors and knowledge to one another. But still, newcomers with entrepreneurial
ambitions are often times confronted with client managers who do not see or consider this option
seriously. This hampers their process.
Background panelists
Fleur Bakker: is director of the Refugee Company, a social enterprise that connects refugees in the
Netherlands to Dutch companies and supports them setting up their own business.
Christof Hawle: is director of Delitelabs, a start-up school that promotes economic (re-)integration
through entrepreneurship by offering intensive training courses to aspiring entrepreneurs.
Theo Huizing: is director of LOMAX, a consultancy company with programmes and projects within
both the profit and non-profit sector. He set up the Project Inspiration Programme in which newcomers
get support in their own language in setting up and running a business.
Raquel Lorenz: is the co-founder of Refugees Forward. This non-profit organisation strives for the
economic empowerment of newcomers and their integration into local communities. One of the ways
they’re doing this empowerment is through connecting newcomers to Dutch students.
3. Reflections of municipality representatives
Manou Chen (Municipality of Amsterdam: Head entrepreneurial support) and Niene Oepkes
(Municipality of Utrecht: Policy advisor refugee policies)
After the two explorations with newcomers, business incubators and the attendees, Manou Chen from
the Municipality of Amsterdam and Niene Oepkes from the Municipality of Utrecht shared their
perspectives with us.
Manou acknowledged that all the information is there, but that it is too hard to find. He emphasized
that the new role of the municipality should be to connect people. Which in this case means that the
municipality should not do everything themselves but take up the role to connect business support
initiatives or Dutch entrepreneurs with newcomers. Manou confirmed that it is crucial in the preparation
of setting up a business to start with building a network and talk to people with entrepreneurial
experience. He gave the advice: “do you want to become a good entrepreneur? Be above average!
And keep in mind: being an entrepreneur here, can be different than where you’re from.”
Niene Oepkes is responsible for projects on migration and integration within the Municipality of
Utrecht. She emphasizes that ‘buddy projects’ indeed work well. As an example Niene described that
they recently started Plan Einstein together with the University of Utrecht. In this project newcomers
11
are offered an entrepreneurship course, a connection with a coach with an entrepreneurial
background and furthermore the neighborhood is actively involved in the initiative. A lot of promising
plans are come into existence at the moment.
12
Reflections by Halleh Ghorashi
Halleh Ghorashi, professor of Management of Diversity and Integration and initiator of the Refugee
Academy, provided her reflections after the discussions.
“The discussion that we held points out a tension between a well-functioning system on paper on the
one side, and on the other the reality that only some people can actually make use of this system. This
is a tension that challenges the Dutch society on a more general level: when there is an assumption
that the system works we have a tendency to take the system for granted. However, it is crucial to
invest in critical zones in the system to remain creative and innovative. One problem of this system is
that only the ones who are at the top of the system, or resourceful enough to understand it, have the
privilege to grasp it and play it well. But this is only a small percentage of the society. We have great
services, but often the people that need these services most are the ones that have less access to
them.
This is also the case for the necessity of clear information, facilities, training, coaching and networking
chances for new entrepreneurs. For all these needs, which are clearly expressed by refugees, we
could often answer that these already exist in the offer of municipalities and other organizations. But
this actually limits our critical gaze, putting an end to a discussion that should go further, towards the
conditions that are needed for this system to actually be inclusive. We ourselves make the system and
are the system. Each of us has the power to become more reflective, and for this we need to focus
more on what we need and less on what there already is: what is needed to for the services provided
by local governments to actually support all new entrepreneurs and also enable hidden talents to
emerge and lead to entrepreneurial success? How can we make new connections that appear
essential for new entrepreneurs?
Making connections, creating spaces where people can come together, meet others and exchange
perspectives, including established entrepreneurs, seems one important condition. Connections with
others can help providing a ground, and can help to translate abstract knowledge into a deeper
understanding of the context and the way to ‘play the game’.
Another reflection that comes to mind is the fact that, when we think of the spirit of entrepreneurs, one
main aspect is the ability to take a risk. People who can take risks are the ones who are able to think
outside the box and to bring innovation. But for newly arrived refugees this may be very difficult,
because when they arrive in a new country, the thing they need most is security, safety. They don’t
have the network and the safety yet which Dutch entrepreneurs have. Newcomers need ground to
stay on, even when they take a risk, for their entrepreneurial talent to flourish.
Research shows that welfare states often fixate on the lacks of people - for example lack of sufficient
mastery of the Dutch language - because they want to help them. The welfare state support is a great
achievement to help those who need help. But it’s drawback is that it produces a fixation on helping
people and a blind spot on what people have to offer. The fixation on lack is manifest in the fact that
13
even after living in the Netherlands for a lot of years, one is not considered a full citizen, as is shown in
the experience of many respondents in our researches.
Therefore we should think about creating “rule-free-zones”. These zones are safe spaces within the
system that offer a lot of integrated information on how to do things. When we create such spaces, we
create support systems that facilitate the talents of newcomers to unfold instead of focusing on lacks.”
14
Conclusion
Friday afternoon the 1st of December, showed that there are many newcomers with entrepreneurial
ambitions, that there are a lot of good initiatives to support them and that municipalities have the
necessary information and intention to share this with anyone who is interested.
So, essential ingredients for pathways towards entrepreneurship are there. However, to unfold a truly
receptive context for new entrepreneurs and their businesses, making valuable connections between
key actors and creating clear access routes to crucial information is needed.
How to take the first step? For example, find connection with a network of newcomers like that of
Salim Abbara (Social Centre for Syrian Community) to create links between new and established
entrepreneurs.
Let’s ignite our entrepreneurial spirit, let’s reflectively engage in creating safe spaces together and let’s
make connections that help in opening up opportunities for entrepreneurial newcomers.
We wish you all the best for the new year!
The Refugee Academy team

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Report on Refugee Academy meeting December 1st

  • 1. Newcomers and entrepreneurship: pathways towards self-reliance and autonomy Report on the VU Refugee Academy meeting. December 1st, 2017. Location: Refugee Company
  • 2. 2 Table of contents Introduction.................................................................................................................................3 A theoretical background on newcomers and entrepreneurship...............................................4 The joint research on the pathway to entrepreneurship for newcomers...................................7 Reflections by Halleh Ghorashi................................................................................................12 Conclusion................................................................................................................................14 Appendix....................................................................................Error! Bookmark not defined.
  • 3. 3 Introduction On December 1st 2017 newly arrived entrepreneurs, business incubators initiators, municipality representatives, academics and many others came together to jointly research the pathway to entrepreneurship for newcomers in the Netherlands. The goal of this meeting was to make new connections, to reflect and to gain shared insights in what enabling and constraining conditions are in becoming and being an entrepreneur in a new context and to explore possible durable solutions that strengthen the steps on the entrepreneurial path for newcomers. Many newcomers have energy, will and skills to start contributing to the host society from the very beginning. However, they often do not have the needed documents, training and the network to enter the labor market in the new context. Host societies, like the Netherlands, have become more and more conscious of the idea that it is as well in our interest to include newcomers in socio-economic activity, as soon as possible. But what if the pathway towards paid employment shows too many obstacles to find a job that matches someone’s capacities? Or what if someone does not want to work for a boss? During the meeting we explored an alternative path to socio-economic integration: the entrepreneurial way. Entrepreneurs with a refugee background shared their experiences and ambitions, business incubator initiators drew upon the chances and obstacles they meet in supporting new entrepreneurs and representatives of the cities of Amsterdam and Utrecht clarified how they see their role in stimulating self-employment among newcomers. In the present report, we will share the theoretical framework we presented and the outcomes of the joint research that we conducted during this meeting. Enjoy reading! Refugee Academy:finding a sharedspace betweenthe extremes of negative stories and the “tyranny of the good practice” We aim to be a space for encounter betw een research and practice, in w hich w e can tackle different themes that are crucial for reception, inclusion, and professional development of people that arrive in the Netherland as refugees. To w ork tow ards inclusion, it is important to look at both sides: investing in individuals and their potential to contribute, and investing in the context and its potential to enable and to include. Within the Refugee Academy, w e try to look at this tension and reflect on how it unfolds in our society, to reflect together on the societalcontext in w hich w e are operating in this moment, and to challenge each other to look beyond the taken for granted, to understand how some w ays to think, to talk, to act can limit our effort to create inclusion and connection. What has struck us, as a team of researchers, in this period, is the fact that w e seem somehow caught betw een tw o extreme discourses (dominant images and stories) about refugees, that are opposed to each other, leaving little room for w hat is in betw een. At the one side, there is a fixation on lack and shortcomings, one that as w e know from research has a longer history in the Netherlands, but that in the last years has developed in an extremer negative version: Refugees (and migrants) are portrayed as a big societalproblem, integration doomed to fail, etc. a lot of fear and negative feelings. At the other side, there is also a strong resistance to this negative discourse. But w hat you see is that there is a strong tendency to balance this negative stance w ith extreme positive examples: The big success stories, the positive side of integration. People desperately w ant to see the counterexamples, the examples of those people that can show that refugees are a w in for society, that they integrate perfectly and quickly. This is to balance the negativity in society, but many organisations and initiatives that support refugees are dependent on these positive stories to show that they are successful, to show their project is a ‘good practice’, because their very existence is insecure and dependent on the approval of others (municipality, other funding parties). We could call this The tyranny of the ‘good practice’. Of course, these success stories exist and it is great to make them visible. But the point is w e also need a space, a shared space to talk about w hat lies in betw een this scary negative and extreme positive stories. About the small, every day challenges, the small steps tow ards inclusion that both the individual and the context (be this an organisation, the municipality, the community) can take.
  • 4. 4 A theoretical background on newcomers and entrepreneurship In comparison to studies on refugee entrepreneurship, a larger body of studies on migrant entrepreneurship has emerged the past decades. For that reason we will highlight theoretical insights on the much-studied subject of migrant entrepreneurship. In order to clarify the terms used, ‘migrants’ are persons outside of their country for more than twelve months (Sasse & Thielemann in Baycan- Levent & Nijkamp, 2009). The term ‘migrant entrepreneurship’ refers to first generation migrants who start a business in the new context they are part of. Migrant entrepreneurship in Europe and the Netherlands Research on migrant entrepreneurship on a European level shows that migrants are more likely to be self-employed than similarly skilled native-born workers and that the share of business ownership among these groups is expected to continue to grow (Baycan-Levent & Nijkamp, 2009). Zooming in further on the Dutch situation it becomes visible that in 2016: o Migrant businesses make up 13,4% of all existing businesses o Migrants started-up more than 21% of all new ventures o People from Syria and Iraq form the largest groups within the starting group of entrepreneurs (Kamer van Koophandel, 2017) So, entrepreneurship is not a new solution or alternative, but a path that is often chosen by newcomers. Motives To get more insight in why newcomers choose this adventurous path, it is needed to understand people’s motives to start a business. Both literature (Sak, Kaymaz, Kadkoy & Kenanoğlu, 2017) and our preliminary research, show two dominant patterns in the motivation to start. One is out of necessity and one is out of vocation. During the preliminary research newly arrived entrepreneurs narrated that they have not been able to find a place in labour market because they only got rejections and that they could not find an opportunity that meets their ambitions. As well some people shared the fact that they were entrepreneurs all their working life and not wanting to do anything different. Somebody else expected to fulfil his dream in the Netherlands and aims to start a business to realize that dream.
  • 5. 5 Conditions for entrepreneurship What does theory on (migrant) entrepreneurship tell us about important conditions in the pathway towards starting and running a business? The central insight is that these conditions are created in the interplay between the individual entrepreneur and his or her multilayered context. On an individual level it is possible to distinguish different forms of capital that one needs or that are helpful in starting and running a business (Ram, Theodorakopoulos & Jones, 2008): Social capital: having a social network enables opportunities. The more diverse the connections in that social network (informal and formal), the more diverse opportunities one could encounter and seize. Human (or cultural) capital: having skills, experience, motivation and knowledge to start and run a business. Economic capital: having access to enough budget to both sustain oneself (and one’s family) and invest in the needed company resources, like machines, a car, a computer, a location, etcetera. At least as important is to see how receptive the context is that the entrepreneur is interacting with. This context is multilayered. Three layers we will zoom in on here are: The social context: how receptive is the Dutch social context to new entrepreneurs? For example potential customers are being influenced by the polarized debate on migration. This could work out positively, but as well negatively. The economic context: how willing is the credit market to finance newcomers who start a business? Also in this market stereotyping plays a constraining role for newcomers. Moreover financers are hesitant to provide credit to people with a temporary status. Nonetheless there are banks, like Triodos, who do finance entrepreneurial newcomers with a temporary status and a promising business plan. The institutional context: in the Netherlands we live in a highly regulated country, with obligations regarding to paying taxes, needed permits and certificates. Not having the know-how of these regulations can negatively influence the start and running of a business – one can risk fines and penalties when not complying to the rules. (Sources: Ram et al., 2008; Kloosterman, Van der Leun & Rath, 2010)
  • 6. 6 So focusing on the level of the individual only limits opportunities for entrepreneurship and socio economic integration, therefore it is crucial to take the receptivity of wider contexts into account. Sources  Baycan-Levent, T. & Nijkamp, P. (2009). Characteristics of migrant entrepreneurship in Europe. Entrepreneurship and Regional Development, 21, 375–397.  Kamer van Koophandel (2017). Jaaroverzicht Ondernemend Nederland. Retrieved from: https://www.kvk.nl/download/Jaaroverzicht%20Bedrijfsleven%20Nederland%202016%20versi e%20US7_tcm109-433766.pdf  Kloosterman, R., Van Der Leun, J. & Rath, J. (2010). Mixed embeddedness: (In)formal economic activities and immigrant businesses in the Netherlands. In Martiniello, M. & Rath, J. (Eds.), Selected studies in International Migration and Immigrant Incorporation (pp. 315–337). Amsterdam University Press.  Ram, M., Theodorakopoulos, N. & Jones, T. (2008). Forms of capital, mixed embeddedness and Somali enterprise. Work, employment and society, 2(3), 427-446.  Sak, G., Kaymaz, T., Kadkoy, O. & Kenanoğlu, M. (2017). Forced migrants: Labour market integration and entrepreneurship. (Working paper Nr. 2017-61). Retrieved from: https://www.econstor.eu/bitstream/10419/169120/1/898550599.pdf
  • 7. 7 The joint research on the pathway to entrepreneurship for newcomers Together with the actors on stage and the audience we conducted a joint research. The three leading questions were: “what are the most important needs and constraining conditions in the pathway to entrepreneurship for newcomers?”, “what are the most important enabling conditions in the pathway to entrepreneurship for newcomers?” and “what are durable solutions in the pathway to entrepreneurship for newcomers?” 1. Panel discussion with new entrepreneurs Salim Abbara (HS Verhuizingen) and Kamal Naji (Chef Kamal) New entrepreneurs Salim and Kamal are both from Syria. Salim recently started a moving and renovation company together with a business partner in Noord-Brabant and Zuid-Holland. Kamal is in the process of starting a catering business in Amsterdam. In the discussion, Kamal and Salim described conditions that were enabling for their pathway to entrepreneurship. These conditions were mostly related to the social network they created in the new context. For example Salim started HS Verhuizingen with a business partner with whom he, in an earlier stage, worked in another moving company. Both this former employer and his business partner are now opening up opportunities by providing him with their knowledge, skills and support in finding clients. Kamal created a big network in Amsterdam when he started cooking daily for 320 temporary inhabitants and people working at the Havenstraat [emergency shelter]. He set up a team and taught them how to cook, he met a Dutch woman there who now helps him to start his business and he initiated a Chef Kamal-Facebook page with many followers (and potential clients). Because of his experiences in the Havenstraat and the opportunities he now gets in catering jobs, he gets a good insight in what the Dutch market wishes for with regard to Syrian food. This is helpful in starting his restaurant. Another important enabler is feeling a real driving force for the job one is doing or aiming to do. As Kamal shared in the interview preparing the meeting of December 1st, for him his love for cooking and motivation to realize his dream (starting a restaurant) is his most important resource in the process of entrepreneurship. “When I am in the kitchen I forget everything, all my problems. I cook with all my heart.” Constraining conditions, described by the two entrepreneurs, are not having the access to the needed information on regulations, not being prepared for the new and different business culture in the Netherlands and negative image formation of refugees.
  • 8. 8 The entrepreneurs emphasized that newcomers need more information and clarity about the tax system, bookkeeping and insurances. All the information is somewhere out there, but it does not seem to reach the people who need it. For example because the information is in Dutch or people don’t know where to find the information. However, Kamal explained that he has found a course provided by the City of Amsterdam where he expects to get the necessary information. A friend of him mentioned this workshop. Moreover they know that many newcomers fear that their welfare will stop when they start their business and earn their own money. What if running a business goes wrong? This is especially important when the newcomer has a family who depends on the income of the entrepreneur. So more information and clarity on the possibilities and regulations concerning welfare while starting a company is needed according to the panelists. Other constraining factors while running a business are shared by Salim. One is that the business culture in the Netherlands is very different than the one he knows from Syria. He experienced a few times that he was too trusting, this resulted for example in a situation that he did not get paid for his services by a client and in another case that he got stolen. The other one is that he bumps into negative stereotypes of (Syrian) refugees. The moment his potential customers see that he is Syrian, people seem to hesitate and refuse to give him the job, he explained. “People believe that I cannot do anything or they simply don’t want to give me the chance. The people don’t know enough who the Syrians are and from where and what they come from”. Ingredients for durable solutions that Kamal and Salim mentioned are related to creating more diverse social networks around newcomers by connecting the ‘new’ entrepreneurial community to the host entrepreneurial community. For example, Salim recently started the Social Centre for Syrian Community (SCSC). This is a foundation that facilitates network meetings and connections with Dutch entrepreneurs to share experiences of the Dutch business culture and knowledge on opportunities and obligations. With this, newcomers can enlarge their social capital and create a broader and more diverse network that is supportive of their business. Background panelists Kamal Naji: was a lawyer back in Syria, with a love for cooking. In Amsterdam he made work of this passion and started to cook daily for all the residents and employees in the emergency shelter Havenstraat he was staying in. Now he wants to realise his dream in the Netherlands. He works as a caterer already - Chef Kamal - and aims to find a location to start a Syrian restaurant. He understands the doubts of many newcomers who want to start a business: he has a family and needs to have a secure income. The unclarity about keeping welfare is a reason for others to not start a business. Kamal is nonetheless determined in making this step. Salim Abbara: was a business owner in the hospitality industry in Syria. His company consisted of a restaurant, a hotel and later on a space for art exhibitions. Soon after his arrival in the Netherlands he wanted to start a job or internship. However, after applying for many different jobs and functions, he always received a negative reply. Salim decided to take his fate in his own hands: he started an internship with a moving company and a course on how to start a business. From there he set up his own company, HS Verhuizingen. He works together with a partner and they have been supported in setting up the business by the moving company they both worked for before. Recently he set up the Social Centre for Syrian Community (SCSC).
  • 9. 9 2. Panel discussion with business incubator initiatiators Christof Hawle (Delitelabs), Theo Huizing (LOMAX and the PIP Programme), Fleur Bakker (Refugee Company) and Raquel Lorenz (Refugees Forward) Discussing constraining factors in the pathway to entrepreneurship, the initiators confirm that the fear of stepping out of welfare is one of the biggest hindrances for newcomers to become self- employed. As well the complex rules and regulations work constraining for aspirants. An attendee in the audience notices that the Dutch system is not inviting to start a business and even hindering in taking this step. Moreover, the panelists mention that short term business support, in which people are being warmed up to start a business but are left alone when they bump into the complex reality of running a business in NL, is problematic. Starting a business is one, but running and retaining a flourishing business in this complicated new context is another story. Both municipalities and business support organizations should take this into account. An enabling condition in the socio-economic integration of newcomers is becoming active in an early stage when having arrived in the Netherlands. Fleur mentions that this makes a huge difference later on. Because then you can start a network, experiment with what is possible and get an understanding and a perspective on what one would like to do. Christof and Fleur describe that forms of “safe spaces” are crucial in this early stage. Spaces where the threshold for developing oneself and finding new and differentiated contacts is low. “Learning by doing”, Raquel mentions. Giving support in one’s own language and help in finding finance works enabling as well, Theo describes. He says that the language might be different, but that in essence cultures and mentalities do not differ so much. So why wait after somebody is ‘integrated’ and not start right away if somebody has promising plans and a strong motivation? Raquel states that the connection with Dutch people is essential in the startup phase. This is confirmed by the others who describe that Dutch entrepreneurs have a network already while newly arrived entrepreneurs only have limited contacts. Are there structures or ways to connect newcomers with Dutch entrepreneurs? Another central point we should keep in mind when creating support structures for entrepreneurial newcomers, is that differentiated support is needed. Christof mentions that there are big differences and differing questions among people who have no prior experience and for the ones who have an entrepreneurial background already. He mentions as well that we should be aware of the fact that entrepreneurship is a great solution for some, but not the best answer for everyone. Furthermore, the Dutch system world needs more entrepreneurial spirit. Some civil servants in municipalities do have the spirit; they are open for and stimulating in the entrepreneurial pathway by
  • 10. 10 connecting the right actors and knowledge to one another. But still, newcomers with entrepreneurial ambitions are often times confronted with client managers who do not see or consider this option seriously. This hampers their process. Background panelists Fleur Bakker: is director of the Refugee Company, a social enterprise that connects refugees in the Netherlands to Dutch companies and supports them setting up their own business. Christof Hawle: is director of Delitelabs, a start-up school that promotes economic (re-)integration through entrepreneurship by offering intensive training courses to aspiring entrepreneurs. Theo Huizing: is director of LOMAX, a consultancy company with programmes and projects within both the profit and non-profit sector. He set up the Project Inspiration Programme in which newcomers get support in their own language in setting up and running a business. Raquel Lorenz: is the co-founder of Refugees Forward. This non-profit organisation strives for the economic empowerment of newcomers and their integration into local communities. One of the ways they’re doing this empowerment is through connecting newcomers to Dutch students. 3. Reflections of municipality representatives Manou Chen (Municipality of Amsterdam: Head entrepreneurial support) and Niene Oepkes (Municipality of Utrecht: Policy advisor refugee policies) After the two explorations with newcomers, business incubators and the attendees, Manou Chen from the Municipality of Amsterdam and Niene Oepkes from the Municipality of Utrecht shared their perspectives with us. Manou acknowledged that all the information is there, but that it is too hard to find. He emphasized that the new role of the municipality should be to connect people. Which in this case means that the municipality should not do everything themselves but take up the role to connect business support initiatives or Dutch entrepreneurs with newcomers. Manou confirmed that it is crucial in the preparation of setting up a business to start with building a network and talk to people with entrepreneurial experience. He gave the advice: “do you want to become a good entrepreneur? Be above average! And keep in mind: being an entrepreneur here, can be different than where you’re from.” Niene Oepkes is responsible for projects on migration and integration within the Municipality of Utrecht. She emphasizes that ‘buddy projects’ indeed work well. As an example Niene described that they recently started Plan Einstein together with the University of Utrecht. In this project newcomers
  • 11. 11 are offered an entrepreneurship course, a connection with a coach with an entrepreneurial background and furthermore the neighborhood is actively involved in the initiative. A lot of promising plans are come into existence at the moment.
  • 12. 12 Reflections by Halleh Ghorashi Halleh Ghorashi, professor of Management of Diversity and Integration and initiator of the Refugee Academy, provided her reflections after the discussions. “The discussion that we held points out a tension between a well-functioning system on paper on the one side, and on the other the reality that only some people can actually make use of this system. This is a tension that challenges the Dutch society on a more general level: when there is an assumption that the system works we have a tendency to take the system for granted. However, it is crucial to invest in critical zones in the system to remain creative and innovative. One problem of this system is that only the ones who are at the top of the system, or resourceful enough to understand it, have the privilege to grasp it and play it well. But this is only a small percentage of the society. We have great services, but often the people that need these services most are the ones that have less access to them. This is also the case for the necessity of clear information, facilities, training, coaching and networking chances for new entrepreneurs. For all these needs, which are clearly expressed by refugees, we could often answer that these already exist in the offer of municipalities and other organizations. But this actually limits our critical gaze, putting an end to a discussion that should go further, towards the conditions that are needed for this system to actually be inclusive. We ourselves make the system and are the system. Each of us has the power to become more reflective, and for this we need to focus more on what we need and less on what there already is: what is needed to for the services provided by local governments to actually support all new entrepreneurs and also enable hidden talents to emerge and lead to entrepreneurial success? How can we make new connections that appear essential for new entrepreneurs? Making connections, creating spaces where people can come together, meet others and exchange perspectives, including established entrepreneurs, seems one important condition. Connections with others can help providing a ground, and can help to translate abstract knowledge into a deeper understanding of the context and the way to ‘play the game’. Another reflection that comes to mind is the fact that, when we think of the spirit of entrepreneurs, one main aspect is the ability to take a risk. People who can take risks are the ones who are able to think outside the box and to bring innovation. But for newly arrived refugees this may be very difficult, because when they arrive in a new country, the thing they need most is security, safety. They don’t have the network and the safety yet which Dutch entrepreneurs have. Newcomers need ground to stay on, even when they take a risk, for their entrepreneurial talent to flourish. Research shows that welfare states often fixate on the lacks of people - for example lack of sufficient mastery of the Dutch language - because they want to help them. The welfare state support is a great achievement to help those who need help. But it’s drawback is that it produces a fixation on helping people and a blind spot on what people have to offer. The fixation on lack is manifest in the fact that
  • 13. 13 even after living in the Netherlands for a lot of years, one is not considered a full citizen, as is shown in the experience of many respondents in our researches. Therefore we should think about creating “rule-free-zones”. These zones are safe spaces within the system that offer a lot of integrated information on how to do things. When we create such spaces, we create support systems that facilitate the talents of newcomers to unfold instead of focusing on lacks.”
  • 14. 14 Conclusion Friday afternoon the 1st of December, showed that there are many newcomers with entrepreneurial ambitions, that there are a lot of good initiatives to support them and that municipalities have the necessary information and intention to share this with anyone who is interested. So, essential ingredients for pathways towards entrepreneurship are there. However, to unfold a truly receptive context for new entrepreneurs and their businesses, making valuable connections between key actors and creating clear access routes to crucial information is needed. How to take the first step? For example, find connection with a network of newcomers like that of Salim Abbara (Social Centre for Syrian Community) to create links between new and established entrepreneurs. Let’s ignite our entrepreneurial spirit, let’s reflectively engage in creating safe spaces together and let’s make connections that help in opening up opportunities for entrepreneurial newcomers. We wish you all the best for the new year! The Refugee Academy team