Immigrant entrepreneurs, here is their portrait: “They are a pillar for the Italian economy and an example of dynamism and resilience”

ROMA – They are young (75.8% are under 50), mainly deal with services, lead 10.8% of companies in our country and contribute significantly to the economic growth of Italy and the EU: this is the portrait of immigrant entrepreneurs outlined today in the European Parliament in Rome on the occasion of the presentation of the Idos – Cna relationship. An analysis that is not easy to carry out, due to the limited attention to the potential of immigrant entrepreneurship which is reflected in the lack of accurate data at community level.

The choice to be entrepreneurs. It is a strategy of self-employment and potential socioeconomic ascent which aims to improve working conditions and to emancipate oneself from the rigid logic of stratification that shapes employment. However, the outcomes remain intrinsically linked to dynamics similar to those they try to escape.

The difficulties of research. As the researchers explain, the lack of standardization in regulations and definitions between Member States makes it difficult to obtain a clear vision of the dynamics of entrepreneurship of foreign origin, which is normally recorded by national business registers. Scholars often rely on Eurostat data on self-employed workers taken from the Labor Force Survey (LFS), a quarterly sample survey which at community level provides estimates on the main characteristics of the entire European labor market.

The importance of immigrant businesses for Italy. “From our work – the president of Idos, Luca Di Sciullo, comments to Repubblica Mondo Solidale – the notable convenience for Italy in promoting and making the system of immigrant businesses in the territory as solid as possible, to the extent that they constitute a ‘physiological’ bridge network between the Italian economy and market and the countries and areas of origin of immigrant entrepreneurs. A bridge network already operating at home, which has given good proof of resilience even in times of global crisis and which would give a strategic international scope to an internal system that is still extremely closed, provincial and weakened”.

The European Union. With 37.5 million presences, Europe confirms itself as a crucial destination for immigrants from all over the world, who bring with them a vast range of talents, skills and entrepreneurial aspirations. However, despite the intrinsic entrepreneurial potential present in the EU’s diverse migrant population, the absence of effective and tailored support schemes and legal, cultural and linguistic obstacles hinder the full development of immigrant entrepreneurship.

In Italy. One sixth of the foreign self-employed workers found in the EU are concentrated in our country. In contrast with the overall picture, while in the period 2011-2022, businesses managed by Italians saw a decline of 5.0%, those run by migrants recorded a notable increase of 42.7%. This trend brought the total number of businesses run by migrants to 647,797 at the end of 2022, thus representing 10.8% of the national total, compared to the modest 7.4% in 2011.

Where are the businesses run by migrants. Mainly, 77.3%, in the central-northern regions (of which, 30.8% in the North-West, 20.9% in the North-East and 13.1% in the Centre), 22.7% in the South (16.5% in the South and 6.2% in the Islands). Among the regions, at the top of the ranking are Lombardy (19.1%, 124 thousand) and Lazio (12.4%, 81 thousand), with their metropolitan cities of Rome (67 thousand, 10.4%) and Milan (61 thousand, 9, 4%), the country’s main immigration hubs. This is followed, at a regional level, by Tuscany (61 thousand, 9.4%), Emilia Romagna (60 thousand, 9.3%), Veneto (53 thousand, 8.2%), Piedmont (50 thousand, 7.8%) and Campania (51 thousand , 7.8%), the only region in the South in which immigrant-run businesses exceed the threshold of 50 thousand units. In Liguria (15.2%), Tuscany (15.1%) and Emilia Romagna (13.5%) the incidence of the immigrant component on the overall business fabric reaches maximum levels, with the support of provincial areas such as Prato (32 .0%), Trieste (19.5%), Florence (17.5%), Imperia (17.5%) and Reggio Emilia (17.3%).

What companies are they? Almost three-quarters (480 thousand, equal to 74.1%) are individual businesses but over the years there has been a consolidation of the immigrant entrepreneurial base, with an increase in joint-stock companies which now represent almost a fifth (18.4% , equal to 119 thousand) of all the autonomous activities of migrants registered with the Chambers of Commerce, double compared to 2011 (9.6%).

What do they do? Mainly services (59.0% of the total); at the sector level, trade leads with 31.8%, followed closely by construction with 23.9%. Almost a third employed at least one employee during 2022 (31.5%): a percentage that aligns with that relating to natives alone, equal to 31.7% (Italy is below the European average with 27, 1%)

Where do migrant entrepreneurs come from? 82.0% of immigrant business owners are of non-EU origin: 63 thousand are Moroccans (12.4%), followed by Romanians (53 thousand, 10.8%) and Chinese (52 thousand, 10.7%), representing over a third of all foreign-born individual business owners. There are clear “ethnic specializations” (in reality more induced by the external context than by natural propensities). In particular, Moroccans (66.0%) and Bangladeshis (63.5%) are concentrated in trade, Albanians (67.1%) and Romanians (56.5%) in construction; finally, the Chinese have a greater sectoral distribution, but are strongly concentrated in trade (34.9%) and manufacturing (33.0%), as well as in the restaurant-hotel sector (14.4%).

The gives immigrate. They emerge as a significant and growing component of entrepreneurship, representing 32.8% of the total at EU level (in Italy, 28.5% of female entrepreneurs are foreign). Services are the main sector of activity of immigrant businesses managed by women (113,611, or 71.4% of the total, 12 percentage points more than all companies led by people of foreign origin). In particular, and not unlike the employee labor market, these are services in agriculture, care, personal assistance, domestic or cleaning services and so on.

Sectoral concentration. Trade (31.8%) and construction (23.9%) account for more than half of the self-employed entrepreneurial initiatives of migrants. The highest growth rates are recorded in accommodation and catering, rental, travel agencies, business services and personal services, together with construction, which in the last three years have been supported by government incentives.

The personal data. 75.8% of immigrant entrepreneurs are under 50 years old, in contrast to 55.4% of Italians, highlighting a particular dynamism and vitality within the immigrant business community.

Pillar for the Italian economy. The report concludes: “Immigrant entrepreneurship is therefore confirmed not only as a pillar of the Italian economy, but also as an example of dynamism and resilience, contributing substantially to the social and economic progress of the country. As in the rest of Europe, however, despite a context of continuous and in many aspects positive evolution, there is a marked precariousness and structural fragility, which requires greater attention from political decision-makers”.

The role of immigrant entrepreneurship in Europe. Among EU countries, Germany is at the top with 436,200 foreign self-employed workers, followed by Spain (394,100), Italy (287,200) and France (259,600). Together, these four countries reach a particularly significant weight, constituting over 75% of the total foreign entrepreneurship active in the EU. “Immigrant entrepreneurship represents a fundamental pillar for the sustainable and inclusive development of the European Union, comments the National CNA Vice President, Marco Vicentini. The diversity and rich perspectives that immigrant entrepreneurs bring with them are a catalyst for innovation and economic growth. We will continue to work to ensure that they are guaranteed a favorable environment, allowing them to fully unlock their entrepreneurial potential and tangibly contribute to the social and economic progress not only of our country, but of the entire European Union”.

What to do? Three guidelines. Starting from a detailed contextual analysis, the Report suggests three fundamental guidelines for maximizing the entrepreneurial potential of immigrants:

1. Support the development of immigrant businesses, capitalizing on their transnational vocation to stimulate the Italian economy and relations with the entrepreneurs’ countries of origin. This recommendation is based on the concept of “globalization from below”, in which businesses managed by immigrants become privileged actors in the bilateral and transnational economy, contributing to the co-development of both Italy and the entrepreneurs’ countries of origin.

2. Overcoming the legal, bureaucratic and socio-economic obstacles that discourage the growth of foreign companies in Italy, instead favoring the endogenous growth of local companies. Immigrant businesses in Italy are often born from a “bottom-up” initiative, by immigrants who have settled in the country for a certain period and who decide to start their own business, taking on the business risk.

3. Enhance the innovative potential of immigrant businesses, especially those led by new generation young people, and promote greater support from the Italian production system to improve competitiveness on international markets. This recommendation underlines the importance of innovative startups managed by young immigrants, who can carry out innovative and technologically advanced projects, thus contributing to Italy’s economic growth and competitiveness on global markets.