Across the world, refugees are often characterized as a drain on society, but research from the University of Canterbury highlights how beneficial they can be, not only economically but also socially and culturally.

The researchers look particularly at refugees that establish a business in their adopted homeland, and how providing support for these refugee entrepreneurs can produce a ripple effect that spreads throughout the community.

Bedding in

The success of refugees depends considerably on their ability to settle into their new home, and this requires not only government support but also that of civil society, private institutions, and any family, friends, and diaspora communities they have access to.

While the New Zealand Refugee Resettlement Strategy aims to ensure that refugees settle and start to participate as quickly as possible The researchers interviewed refugees who owned small businesses across New Zealand who had been resettled from Colombia, Vietnam, Afghanistan, Myanmar, and Kurdistan.

The majority of these businesses were in areas such as retail, hospitality, personal care, and construction. Many of the refugees had been in the country for over 20 years and started their stay in employment before creating their own businesses.

Multiple benefits

The researchers identified three benefits that refugee entrepreneurs were creating in their communities. The first was obviously the economic benefits produced via the introduction of new products and services. They would also create new jobs and spread economic wealth via subcontracting and the general expansion of the customer base. It’s also common for their companies to work with other local businesses.

They also created social value as many sponsored local events or provided spaces for locals to interact with one another. The researchers also identified clear cultural value generated by the entrepreneurs, especially those operating food or hospitality ventures as they provided ways for locals to experience new cultures and cuisines.

The researchers believe that their findings highlight the value countries can obtain if refugees are helped in the creation of new businesses.