“Hyper-productive” immigrant entrepreneurs have founded 1 in 7 UK firms

One in every seven firms operating in the UK was founded by immigrant entrepreneurs, and immigrants to the UK are more likely than people born in the UK to launch businesses, according to a study by the Centre for Entrepreneurs think-tank and financial technology firm DueDil.

The report found that 17.2% of immigrants in the UK have founded their own businesses, compared with just 10.4% of British born individuals.

DueDil founder and CEO Damian Kimmelman, an American, said: ““Immigration is one of Britain’s most emotive topics for debate. Sadly, opinions are rarely informed by evidence. This game-changing research proves that migrant entrepreneurs are hyper-productive, net contributors to the UK economy.”

The report found that Irish immigrants were most likely to set up businesses in the UK, followed by Indians. Chinese, Polish and Pakistani immigrants are also in the top ten.

London is the most common place for immigrant-founded companies by a considerable margin, with 220,637 in the capital. Less than a tenth as many are set up in Birmingham, which is the second most common location. 

Matt Smith, director of the Centre for Entrepreneurs, said: “The contribution of migrant entrepreneurs is, to be frank, breath-taking.

“Presented with such irrefutable evidence, it is now the responsibility of politicians of all parties to celebrate migrant entrepreneurs’ contributions and restate their commitment to maintaining pro-entrepreneurship immigration policies”.

The report comes as the government is under fire for withholding a cross-governmental report on the impacts of immigration to the UK.

The report suggests that the “displacement” of British workers by the arrival of immigrants is a considerably lower figure than previously thought. In the past Home Secretary Theresa May has quoted figures from the Migration Advisory Committee (MAC), which estimated that “for every additional 100 immigrants… 23 British workers would not be employed.”

But Downing Street has insisted that the new report is unfinished and would be published in due course.

Want more? Follow us on LinkedIn

Now read:

London is second most expensive city for companies to locate employees

London skyline

Social Bookmarks