Unlocking the refugee entrepreneur opportunity 

From a report by The Entrepreneurial Refugee Network (TERN) and Square Up

Refugees offer a source of untapped potential for the UK economy, according to new research from The Entrepreneurial Refugee Network (TERN) and global technology company, Square.

[TERN is a social enterprise with a mission to enable refugees to thrive through the power of their own ideas. They help refugees become entrepreneurs, launch businesses and take control of their own futures. Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations.]

TERN estimates there are currently 26,500 refugee entrepreneurs in the UK, contributing £520 million to the economy. With the right financial and coaching support, this could potentially increase to £5.1 billion.

‘The Refugee Entrepreneur Opportunity’ report has revealed a gap between the entrepreneurial potential of refugees and the reality they face in setting up a business in the UK. Refugees are rarely seen as supporting the economy, with just 7% of UK adults saying they see refugees as entrepreneurs and only 10% are seen as contributors. On average, only 30% of people say they think refugees want to start a business in the UK, and only 26% think they already have.

Despite this, the British public is cautiously open towards refugee entrepreneurs, recognising they face greater structural barriers to launching a business. More than a third (36%) say they support the idea of refugees starting businesses and 31% say they would be pleased if more refugees started businesses. However, 56% agree that refugees face more structural barriers than UK-born entrepreneurs, citing language (45%), lack of access to finance (31%) and prejudice/discrimination (29%) as the biggest blockers refugees face when trying to start a business in the UK.

Charlie Fraser, Co-founder of The Entrepreneurial Refugee Network, said: “Refugee entrepreneurs are skilled, creative and determined, but they often operate without safety nets or fair access to finance. Our work on the ground means we know how many refugees are looking to start their own business, so we’re focused on turning this potential into sustainable prosperity and growth for founders, and the communities they serve.”

Alongside the research, in-depth interviews with refugee entrepreneurs reveal the human reality behind the statistics. Founders consistently describe entrepreneurship as emotionally demanding but deeply purposeful, and a way to rebuild stability, identity and confidence alongside income. Many highlight that sustaining their business once it’s set up is also harder due to a lack of confidence, mentorship and long-term support.

The report makes five key insights and recommendations for how the UK can remove the barriers highlighted in this report, and turn refugee entrepreneurial aspirations into tangible economic impact:

1. Starting a business isnʼt the hard part, surviving the first two years is
Refugee entrepreneurs consistently said itʼs relatively easy to set up a business in the UK, but itʼs hard to sustain one. Ongoing costs and complex bureaucracy drain their time, money and energy at the most vulnerable stage. Support needs to shift from “start-up” to “stay-up”. Support programmes should be extended beyond launch into 12–24-month sustainment phases. Operational support, rather than just business development, will be crucial. Banks and NGOs could provide post-launch funding or grants to cover costs like insurance, certifications and equipment.

2. Bureaucracy can be navigated – but only if you already know how
Government guidance exists, but itʼs often fragmented and difficult to interpret without prior knowledge. Many founders relied on YouTube or their peers to fill in the gaps. What needs to happen: Early-stage founders would benefit from caseworkers or individual business ‘navigatorsʼ to help them understand the system better. There also needs to be more step-by-step, plain English (and multilingual) guides to key requirements such as tax and compliance.

3. Confidence and belief are as critical as capital
Founders pointed to the impact of mentors, peer groups and community organisations as the moment when ideas turned into action. That belief unlocked their momentum. Aspiring entrepreneurs need long-term mentor relationships, not one-off workshops. Peer cohorts can help normalise the realities of ongoing learning and struggling to succeed. More business programmes should prioritise trust, continuity and human connection. 

4. Refugee entrepreneurs are operating without safety nets
Many founders described loneliness, emotional strain and the absence of family or financial back-up. Failure carries higher consequences when there is no cushion to fall back on. Support for refugee entrepreneurs must assume they have zero safety net, because thatʼs most likely their reality. In practice, this could mean more access to micro-grants rather than loans, as well as easy access funding linked to future sales. It could also mean embedding mental health and well-being support directly into entrepreneurship programmes.

5. Many refugee-led businesses are cultural endeavours, not just commercial ones
Their ventures are rooted in family, culture, survival and memory. Business becomes a way to transform hardship into something meaningful, both for them and for others. Bringing their culture to the places they now call home is a way to connect the past and the present. Unlike the typical description of business innovation, refugee entrepreneurship is less about spotting gaps in the market, more about claiming a space for the founderʼs identity, creativity and dignity. Funders should recognise this focus and therefore be patient as such markets develop. Founders will need help developing marketing strategies.

Refugee entrepreneur Jasmine Abakarova, founder of Boemo, a street food business specialising in Italian bomboloni, launched her business after receiving support from TERN. She said: “Without a network or guidance, every decision you make as a refugee business owner can feel heavier. Every email and customer opinion hits you, and this can be especially tough with no financial cushion or family support, and no margin for error. Having access to a strong network of people who can support your business with the right information and solutions is what makes the difference between success and failure.”

Read the full report here.