Research shows that immigrants often become entrepreneurs out of necessity. Doctor and docent Nafisa Yeasmin, the Development Manager of Micro-Entrepreneurship Centre MicroENTRE at the University of Oulu Kerttu Saalasti Institute, has researched this topic and explains that self-driven entrepreneurship is still relatively rare among immigrants because it is difficult for immigrants to find jobs in Finland that match their degrees or educational backgrounds, especially without proficiency in Finnish language.
However, subtle changes are emerging, as more immigrants are now consciously pursuing entrepreneurship. According to Shefat Islam, the Business Adviser Expert at BusinessOulu, highly educated immigrants are particularly interested in Oulu’s growing startup ecosystem and see it as a gateway to employment. She believes that many also pursue flexibility and freedom of entrepreneurship, and the opportunity to bring something personal and distinctive to the market.
Islam has also noticed that the spectrum of businesses is also changing. Immigrant entrepreneurs are now establishing businesses specializing in education, tech, consulting and personal care, and more women are entering entrepreneurship. Yeasmin says that immigrants previously tended to establish similar businesses, like pizza parlors and barber shops, because newcomers easily followed the example of other immigrant entrepreneurs in the area. Now, for example, the tourism sector is growing in Lapland.
Despite the changing business landscape, immigrant entrepreneurship is still hindered by many obstacles. One major issue is the language barrier, which complicates access to information and forces many immigrant entrepreneurs to rely on English in customer service situations. Due to limited language skills, information about things like product registration may not be accessible to everyone.
In addition to the language barrier, financial matters pose challenges. According to Islam, securing funding and dealing with banks put immigrant entrepreneurs through additional trouble, as poor language skills may prevent them from obtaining loans or opening business accounts. Bureaucracy and small market size are also a problematic, as it can be difficult for entrepreneurs to market new products to Finnish consumers accustomed to familiar brands.
Arto Willman, Head of Immigrant Affairs at International House Oulu, emphasizes that rather than being a homogeneous group with similar starting points, there can be refugees among immigrants that are uneducated and suffering from learning disabilities. He also sees racism as a particularly significant issue. For example, while multinationalism in ICT sector is natural, in many other sectors the benefits of diversity often go unnoticed, and immigrants are expected to have perfect Finnish language skills and behave according to Finnish cultural norms.
Yesmin points out that immigrant background brings many valuable qualities, like transnational knowledge, bilingual advantage and other forms of cultural capital. However, they still need to adapt and integrate their cultural heritage with that of the host country, which is not always easy without the help of networks. Cultural knowledge is crucial, as without it, accessing the host country’s social capital can be difficult. The process takes time, and independent startup entrepreneurs may struggle to find time to grow their networks.
An Duong, who moved from Vietnam to Rauma in 2014 to study, is one of many immigrant entrepreneurs who has been able to overcome the early challenges. Duong’s business idea emerged in 2019 when she became interested in skincare and began to study it independently online. Youtube videos introduced her to Korean cosmetics, which were largely unknown in Finland, so in 2021Duong founded an online store specializing in vegan and non-animal tested products.
Duong began considering opening a physical store as she made more sales in events. Opening the shop required taking a risk, but it paid off. Now Duong’s daily life as an entrepreneur has stabilized, though challenges still arise. For example, EU and Finland cosmetic regulations sometimes causes issues, as products certified in South-Korea may not meet EU standards and selling them without registration would not be possible in Finland.
The biggest challenge Duong still faces is the language barrier. Duong has had to do a lot of translation work when seeking information because she has noticed English translations on services like TE-services are often more limited than the original Finnish texts. Duong has not benefited as much from English-language support discussions as her husband, who can communicate in Finnish.
In everyday life, Duong’s Finnish skills are sufficient for asking customers’ basic needs and suggesting treatments, but when explaining product details, she often ask for permission to switch the language of the conversation to English. In such cases, services like Google Translate are often helpful.
Duong received a lot of support when starting her business and was surprised by the number of free courses available for entrepreneurs. These support services have made running the business easier, and through them Duong has found new networks.
Not all immigrants thinking about starting a business is in the same position as Duong, as experts from BusinessOulu and International House Oulu Shefat Islam and Arto Willman and Nafisa Yeasmin from MicroENTRE have noticed that immigrants are often unaware of available services. Some mistakenly believe that they must be fully prepared for entrepreneurship before seeking support. This is not the case, however, because low-threshold places like BusinessOulu and International House Oulu hold events where journey to entrepreneurship is easy to start.
New initiatives, events and clearer support service systems are needed to make immigrant entrepreneurship easier. For example, Yeasmin would focus on breaking the language barrier, as she sees access to information as a universal right. According to Willman, there is a need for more practical courses that do not focus solely on grammar. Immigrants with similar starting points would also benefit from shared courses where they can exchange their experiences and build networks.
Yeasmin and Islam would improve the services available after a business has been established, as the need for support continues beyond the initial phase. As an entrepreneur, Duong would appreciate webinars or multilingual information banks that answer common questions and offer support during free time. Yeasmin believes that applying for funding should also involve less bureaucracy, since entrepreneurs often lack the time and resources to complete complex applications. In addition to startup grants, Islam would also offer other types of support or microloans. She further recommends starting with a smaller business, as it helps minimize risks and assess market demand.
Beyond services, Yeasmin would invest in empowering communities to ensure that diversity and the multifaceted nature of entrepreneurship receive the respect they deserve. Relying on one’s own ethnic network is also worthwhile. Duong encourages seeking peer support from other local entrepreneurs or international members of one’s network, as these connections can help with language barriers, formalizing the business, and scaling it. According to Yeasmin, networks don’t have to be found only in Finland, as they can be built globally.
Networks offer other benefits as well, as Islam advises learning the unspoken rules of Finnish business culture through them, such as trust and punctuality. However, she also reminds all immigrant entrepreneurs to value their backgrounds, as their heritage and past experiences are a source of strength that gives them a reason for pride. Patience and improving resilience also take immigrant entrepreneurs far. Ultimately, it’s about perseverance: immigrant entrepreneurs must hold on to hope, be courageous, and remember it always okay to ask help.
In Kerttu Saalasti Institute's blog we write about the topics of the Institute's research groups, micro entrepreneurship education and the Institute's general topics. The authors are researchers, experts and members of networks.
Our topics are: micro entrenepreneurship, future manufacturing technologies, regional excellence, micro entrepreneurship education