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Employment analysis and turnover

In today’s post we will be examining the recent publication by the Department for Business, Innovation and Skills that measured the impact and contribution that migrants on entrepreneur visas have had economically from 2008 – 2015. Using a sample snapshot of 1,580 businesses and matching data from Companies House registrations, UKVI figures and estimates from the Department of Business, Innovation and Skills, the figures make for interesting reading.  All data that we are using in this post has been taken from the following source.

An Overview

  • In total, some 1,580 companies have been set up or taken over by migrants on a Tier 2 Entrepreneur visa between the period of 2008-2015.
  • With an estimated annual total contribution to the U.K economy of around £1.45 billion.
  • The average turnover per business is estimated to be £919,000

According to statistics from the Home Office in the second quarter of 2015 the top 5 nationalities for Tier 1 Entrepreneur Visas were:

  • Pakistan 785
  • USA 527
  • China 483
  • India 345
  • Australia 226

In terms of the sectors that migrants set up or took over businesses can be broken down in to the following top 5:

  • Wholesale and retail trade, repair of motor vehicles and motor cycles 425
  • Professional scientific and technical activities 380
  • Information and Communication 185
  • Accomodation and Food Service activities 160
  • Administrative and Support Service Activities 135

Based on the sample data, the number of pre-existing businesses taken over by migrants peaked in 2013 with 65 with the lowest figure being 10 in both 2008 and 2009.

Whilst the figures are based on sample data they provide useful reading amongst a back drop of anti-migrant sentiment as illustrated by recent polls by yougov highlighting the general public’s negative perception of migrants, the ongoing Calais migrant and humanitarian crisis and a backlash against the record net migration figure of 320,000 announced last week.

Entrepreneur visas are often seen as one of the most sought after visas in world business. The visa allows applicants to set up business in the United Kingdom, ranked 8th in the World according to the World Bank’s 2015 Ease of Doing Business Report, and is an attractive option for those outside the EU looking to live and work in Europe. Applicants must have access to at least £200,000 or £50,000 pounds worth of funds, depending on their status in the U.K, amongst other eligibility criteria. Visitors can spend a maximum of 3 years and 4 months on this visa and can apply to extend it for another 2 years (subject to meeting the requirements). Those switching to this visa type can extend this up to 3 years, again, subject to fulfilling certain requirements.

These latest figures contradict the opinion that migrants do not provide direct economic benefit to the United Kingdom. Other working visa categories such as the Tier 2 General Visa and tier 1 Investor visa again provide ammunition for those looking to dispel certain myths relating to migration. Non-EU nationals all require visas to be able to legally work in the United Kingdom.

What do you think of these latest statistics? Should the government be doing more to attract international investment in the U.K? Leave your opinion below and let us know!

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