Corporate Immigration in the UK: A Key Component of Industrial Growth

Yvette Cooper, the Home Secretary, has announced a review of sectors heavily reliant on overseas employees, acknowledging the importance of international recruitment in industries like IT and engineering. The UK government emphasizes corporate immigration as a vital component of its industrial strategy, focusing on addressing skills shortages and improving working conditions.

It is important to acknowledge that immigrant entrepreneurs in the UK have played a crucial role in driving innovation across various sectors too. 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 can 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.

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 Centre 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. 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 to the UK economy by foreign-owned businesses grew from £320 billion to £400 billion.

Innovative Contributions to Retail by Immigrant Businesses in the UK

Oddbox
Oddbox is a UK company co-founded by an immigrant that works with farmers to rescue surplus and odd-looking produce, delivering it to consumers at a lower cost. Their innovative business model addresses food waste and promotes sustainable farming.

Zapp
Zapp is an online retail business specializing 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.

Caffè Nero
Caffè Nero is a European-style coffee house brand that started in the UK and has over 1,000 locations in eleven countries. The company has its coffee roastery and produces a unique blend of beans for its coffee houses worldwide.

Expanding Businesses with the Expansion Worker Visa

The Expansion Worker Visa allows international businesses, 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 licence from the UK Home Office. This licence permits the company to sponsor eligible employees for the visa. We specialise in helping businesses acquire these essential licences. Find out more here

Conclusion

The United Kingdom is an attractive location for migrant entrepreneurs looking to establish and grow their businesses overseas. The Expansion Worker Visa is a key factor facilitating this entrepreneurial influx. Overseas-based organisations can take advantage of this immigration route to establish a presence in the UK and significantly impact the British economy.

Contact us today to find out how we can assist you obtain a Sponsor Licence to sponsor an Expansion Worker or assist your employees in obtaining Expansion Worker visas themselves.

Call 01403 80181 or email us at [email protected]