The diversity investment gap: Is Europe overlooking migrant entrepreneurs?

By Vanessa Cotterell

Project Coordinator at UNITEE

The European Union stands at a critical point in its economic and financial strategy, as it navigates the challenges and opportunities of the green and digital transitions, alongside a new political term for the European Commission and Parliament.

Investment, competitiveness, and resilience have resurfaced as key policy buzzwords this autumn, appearing prominently in the long-term strategies and investment plans spearheaded by the new Commission. These initiatives have been further bolstered by recent reports from Mario Draghi and Enrico Letta.

However, amid the race to secure global competitiveness and counter the rise of right-wing and anti-democratic forces, the EU risks overlooking a vital, underutilised asset: the diversity of its population, particularly its migrant communities.

A review of the Commissioner candidate portfolios and Ursula von der Leyen’s Political Guidelines for the Next European Commission 2024-2029 reveals this imbalance. The 31-page document mentions ‘investment’ 49 times, while ‘inclusion’ and ‘diversity’ each make only one appearance.

Diversity is one of Europe’s greatest strengths, yet the EU struggles to harness the full potential of its multicultural communities. While migration to Europe has increased in recent years, migrants and minority groups still face significant barriers to employment, self-fulfilment, and political representation within the EU.

Policymakers can chart a new path forward by strengthening migrants’ social and political rights across European countries, creating space for new narratives, and considering the complex identities, diverse skills, and intersecting power dynamics within our systems. In this context, entrepreneurship emerges as a promising pathway to meaningful employment, inclusion, and self-empowerment for newcomers.

Migrants’ lived experiences and cross-cultural perspectives allow them to approach societal challenges through unconventional lenses. With the right support, these perspectives can be channelled into innovative and socially impactful business ideas. Europe can gain significantly from their skills and talents, not just economically but also socially. Migrant entrepreneurs often go beyond business, acting as intercultural and intergenerational bridge-builders. As role models, they inspire cultural shifts, foster migrant leadership, and drive new public narratives, as evidenced by initiatives such as Hello Europe or MAX.

Yet, migrants continue to face structural barriers to entrepreneurship, including limited access to finance and premises, lack of networks, cultural differences, and challenges linked to their legal status. Existing policies and initiatives at the European level, such as the Entrepreneurship 2020 Action Plan and various EU-funded programmes targeting specific groups, are often short-term and insufficient to address the systemic obstacles entrenched in the financial system.

Despite sharing common challenges, migrant entrepreneurs represent a highly diverse group, including women, mothers, students, workers, refugees, asylum seekers, diaspora communities, ethnic minorities, and second-generation residents with varied cultural backgrounds, expertise, and life experiences. Policy-making must account for this diversity to unlock their full potential.

While cross-national and interdisciplinary research on inclusive entrepreneurship is growing, the EU still lacks nuanced data and analyses. Projects like MIG.EN.CUBE and EMEN, funded by the EU and involving research, business, and civil society organisations in different EU countries, shed light on the persistent challenges migrant entrepreneurs face and offer insights into how policymakers could create opportunities.

To this end, community-oriented organisations play a particularly vital role in understanding the needs of entrepreneurs from diverse backgrounds, providing them with tailored support, and amplifying their voices in decision-making spheres. Take AiDiA, a standout initiative that supports Afro-German entrepreneurs through tailored actions, including an annual pitch event for Black founders. Operating at the intersection of entrepreneurship and cultural diversity, AiDiA demonstrates how organisations can challenge outdated narratives around business and entrepreneurship, create opportunities for marginalised groups, and ensure local successes gain recognition on a larger stage.

Europe has much to gain by adopting a more inclusive approach to entrepreneurship and investment — and much to lose if it does not act. Expanding tailored support and improving access to finance for marginalised groups, including migrants, strengthening connections within and across communities and countries can boost the EU’s competitiveness and innovation while cultivating stronger and more integrated diverse societies. At the same time, linking grassroots efforts with EU policy initiatives will be crucial for scaling impact. This underscores the untapped potential to develop more inclusive and intersectional EU policies on entrepreneurship, skills development, and investment.