For millions of refugees worldwide, the right to work is not equally accessible. According to the United Nations High Commissioner for Refugees (UNHCR), approximately 85% of the estimated 26 million refugees are hosted in low- and middle-income countries, where finding work often presents huge challenges. Legal barriers further complicate refugees’ ability to become entrepreneurs, own and operate businesses, or access business financing.

A report by the Center for Global Development, Asylum Access, and Refugees International highlights that 55% of refugees live in countries that significantly restrict their right to work, while 19% reside in countries with severe restrictions. This equates to at least 21.5 million people who face barriers to housing, employment, healthcare, and education, thus adding unique levels of adversity and disadvantage. Additionally, LGBTQI+ refugees face heightened risks of discrimination, harassment, and violence from authorities, the general public, and other refugees.

Across different regions and countries, the disparity in work rights and conditions for refugees varies widely. Some countries, particularly in Latin America, boast strong legal frameworks, but even when laws are in place, the economic, social and bureaucratic barriers to employment are immense. Refugees often find themselves trapped in a cycle of poverty and exclusion, struggling to make ends meet.

There is an emerging body of good practices in entrepreneurial support for newcomer entrepreneurs. Based on our report, ‘Mapping Refugee & Migrant Entrepreneurship Ecosystems in Europe‘, with support from The Human Safety Net, here are some recommendations:

Access to finance

  • Advocate for the legal framework to facilitate refugee and migrants’ access to capital
  • Negotiate agreements with banks that have more social and inclusive criteria, to facilitate access to credit
  • Strengthen networking and communicate better the finance options already available
  • Provide specific grants within programmes for refugee and migrant entrepreneurs
  • Promote crowdfunding of resources

Enhance entrepreneurial skills & networks

  • Adapt training, workshops, and mentorship programmes to boost entrepreneurial skills
  • Create networking opportunities among refugees and the business community
  • Develop experiential learning processes
  • Offer training in accounting and matchmaking with accountants

Building financial capital

  • Advocate for policymakers and funders to secure funding for business development
  • Improve cooperation with job centres and employment agencies to open access to grants and micro-loans
  • Promote equity crowdfunding
  • Create a fund for investing in refugee and migrant entrepreneurs
  • Support in identifying opportunities for grants and public funding

Read the full article about investing in refugees to build wealth by Al Siew at Impact Hub.