The £2Bn economic potential of refugee entrepreneurship
Refugee entrepreneurs could boost the UK economy by an estimated £2 billion if barriers to entrepreneurship were tackled and more tailored support was available to this demographic, according to new findings from The Cedar Review.
Following nine months of dedicated research, The Cedar Review – an independent review into refugee entrepreneurship in the UK led by Small Business Britain – examines the barriers currently preventing refugee entrepreneurs from starting and growing a business in the UK and the economic opportunity that could be unlocked through greater support. It sets out eight recommendations to help remove these barriers and enable more refugee-founded businesses to contribute to the UK economy.
Michelle Ovens CBE, CEO & Founder of Small Business Britain and co-chair of the Cedar Review, said: “Too often, discussion around refugees focus on need, support, and integration. While these are undoubtedly important, they tell only part of the story. Refugees are also entrepreneurs, employers, innovators, and creators of opportunity. The Cedar Review underlines the drive and potential refugee entrepreneurs have, but the evidence presented questions whether our systems are designed to recognise that.
“At Small Business Britain, we are dedicated to bringing down barriers to entry for all entrepreneurs and the Cedar Review is a clear representation of how we can get more entrepreneurial talent and ambition contributing to the UK economy.”
Untapped entrepreneurial experience
Drawing on a national survey, focus groups across the UK, and written evidence, the research found more than half (56%) of founders surveyed had run a business before arriving in the UK, while 79% already employ people or plan to do so soon, highlighting the significant entrepreneurial experience and ambition within the refugee community.
However, the review found lengthy restrictions on working and self-employment during the asylum process risk leaving experience untapped. Rather than a lack of entrepreneurial ability or ambition, the findings point to structural barriers that can delay refugees from putting their existing skills and experience to use in the UK economy.
The Cedar Review is calling the Government to include self-employment within permission to work and reduce the waiting period before permission to work and start a business may be granted from twelve months to six, aligning with the EU’s recast Reception Conditions Directive standard.
Stable path to settlement
More than a third (36%) of founders identified uncertainty around their status in the UK as a key challenge when starting a business. Since March 2026, people granted refugee status receive 30 months of leave, creating uncertainty for entrepreneurs making longer-term commercial decisions.
The Review demonstrates that this timeframe makes it harder for founders to confidently commit to leases, secure finance and make other long-term investments needed to grow a business. Therefore, it recommends that the Government amend the criteria for accelerated settlement, so that verified business activity is recognised alongside salaried employment.
Publish one plain-language guide to starting a business in the UK
The findings highlight a significant gap in access to business support, with 71% of founders surveyed saying there was support they needed but could not access. Yet where support was available and accessible, 67% of those who received it found it helpful.
The review found that support for refugee entrepreneurs can be fragmented and poorly signposted, making it difficult for founders to navigate the process of starting and growing a business and is calling for a single, plain-language guide to starting a business in the UK. Providing clear and authoritative information on the key steps founders need to take, including legal structure, registration, tax, VAT, licensing, and insurance.
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