Immigrant entrepreneurs in the UK have played a crucial role in driving innovation across various sectors, including retail. The Entrepreneur’s Network stated that migrant founders and co-founders own 39% of the top 100 fastest-growing enterprises in the UK.
The influx of immigrant-owned businesses is fuelled by the UK’s open business environment and immigration system.
Foreign companies are able to easily expand their operations by leveraging the UK Expansion Worker Visa and other Global Business Mobility visas. With these visas, they can transfer key staff from their overseas offices to set up a branch of their business in the UK and manage the new operations.
According to the Office for National Statistics (ONS), most of these foreign-owned businesses are in the wholesale and retail trade. This article will discuss how the UK retail sector has benefited from the diverse perspectives, skill sets, and innovative approaches brought by international business pioneers.
The Benefits of Immigrant Entrepreneurs to the UK Economy
Increased Job Opportunities
Immigrant businesses play an essential role in generating employment opportunities for both domestic and foreign workers. According to research from the Center of Entrepreneurs, migrant entrepreneurs are behind one in seven businesses in the UK and are responsible for creating 14% of all jobs in small and medium enterprises (SMEs).
When comparing them with UK businesses, ONS states that as far back as 2021, 7.2% of foreign-owned companies employed 250 persons or more, compared with only 0.2% of UK-owned businesses. Obviously, the influx of foreign enterprises in the UK stimulates economic growth and contributes to a dynamic and diverse job market.Knowledge and Skills Transfer
Migrant entrepreneurs bring expert knowledge and business models from their home countries that can lead to innovation, improved business practices, and the development of new products and services.
These entrepreneurs often send in specialist employees from overseas to fill critical roles that may be in short supply locally, which can help to close the skills gaps in the UK labour market.
Increased Turnover
The entrepreneurial ventures established by immigrants contribute significantly to the UK’s economic turnover. These businesses generate substantial revenue, pay taxes, and reinvest in the local economy, supporting infrastructure development and public services.
Between 2015 and 2021, the approximate gross value added (aGVA) to the UK economy by foreign-owned businesses grew from £320 billion to £400 billion. The wholesale and retail trade, which represents the largest proportion of these businesses (22.3%), contributed £75 billion in aGVA in 2021.
Innovative Contributions to Retail By Immigrant Businesses in the UK
Oddbox
Oddbox is one of the top 100 fastest-growing companies co-founded by an immigrant in the UK. The company partners with farmers and suppliers to rescue fresh, surplus, and odd-looking” fruits and vegetables and delivers them directly to consumers’ doors at a lower cost.
Oddbox’s innovative business model tackles food waste and promotes sustainable farming by sourcing produce that might otherwise go to waste due to cosmetic imperfections, surplus stock, or logistical issues.
Zapp
Zapp is an online retail business specialising in ultra-fast delivery of groceries and essential everyday items. Their service is designed for convenience, targeting customers who need items urgently and prefer the speed and ease of rapid delivery.
The company’s business model leverages strategically located micro-fulfilment centres to ensure swift and efficient delivery, aiming to meet the growing demands of busy urban lifestyles.
Caffè Nero
Caffè Nero is a European-style coffee house brand started by a US-born founder in the UK. It has grown to over 1,000 coffee houses in eleven countries. The company has its own coffee roastery, from where it produces a unique blend of beans roasted to its specifications and supplies to all its coffee houses worldwide.
Expanding Retail Businesses with the Expansion Worker Visa
The Expansion Worker Visa allows international businesses, including those in the retail industry, to send key personnel to the UK to establish new branches or subsidiaries. These employees must be senior managers or specialist staff already working for the organisation overseas.
Before applying for the Expansion Worker Visa, interested companies must obtain a sponsorship license from the UK Home Office. This license permits the company to sponsor eligible employees for the visa.
The organisation must also determine that the employee meets the requirements for the visa. To be eligible, the employee must:
- Have worked for the company outside the UK for at least 12 months unless the employee:
- Earns over £73,900
- Is a Japanese national expanding the operations of a Japanese company that is expanding to the UK
- Is an Australian national or permanent resident expanding the operations of an Australian company
- Have a valid certificate of sponsorship from the employer
- Take up a job that’s on the list of eligible occupations
- Be paid the minimum eligible salary of £48,500 per year or the ‘going rate’ for your job – whichever is higher.
Employees can apply for the visa online. The process involves completing the online application and uploading the required supporting documents proving the applicant’s eligibility.
They’ll also need to pay the visa application fee of £298 and a healthcare surcharge of £1,035 per year. The Home Office will review the application and respond with a decision within three weeks.
If the visa is granted, the employee can relocate to the UK to set up the new business. This includes establishing a physical presence, hiring local staff, and implementing business strategies to penetrate the UK market.
The maximum time they’ll be allowed to stay in the UK is usually two years.
Conclusion
The United Kingdom is an attractive location for migrant entrepreneurs looking to establish and grow their businesses overseas. Statistics show an increase in the number of immigrant-owned businesses in the UK, whose invaluable contributions drive innovation and economic growth, particularly within the retail sector.
The Expansion Worker Visa is a key factor facilitating this entrepreneurial influx. Overseas-based retail organisations can take advantage of this immigration route to establish a presence in the UK and significantly impact the British economy.
