UK startups economy relies on high quality immigration

New data suggests that 39 percent of Britain’s top 100 fastest-growing companies were founded by individuals born outside the United Kingdom, even though immigrants make up less than 15 percent of the overall population. The research, conducted by think tank The Entrepreneurs Network and supported by Fragomen, highlights the significant role that high-quality immigration plays in driving business growth and innovation. Previous research from 2019 showed an even higher proportion, with 49 percent of Britain’s top 100 fastest-growing companies having a foreign-born founder.

The Entrepreneurs Network argues that the findings prove that international talent makes an essential contribution to Britain’s startup landscape, and calls on the government to enact a series of policy reforms to ensure Britain is open and accessible to the world’s brightest and best. These include negotiating a Youth Mobility Scheme with the EU and US, lowering visa fees for high-skilled immigrants in line with international competitors and expanding the High Potential Individual visa list to more universities.

Among the companies featuring in the top 100 with at least one foreign-born founder are names like carwow, Monzo, Atoa. Also featured in the report are two case studies from foreign-born founders of companies in the top 100 list. These include Paul Domjan of ENODA, and Shiladitya Ghosh of Mission Zero Technologies [see below for excerpts].

Eamonn Ives, Research Director of The Entrepreneurs Network said: “Foreign talent is helping to build some of Britain’s most exciting and lucrative companies. We need to ensure our immigration system recognises their incredible contribution, and doesn’t needlessly throw up barriers to those who want to make our economy stronger and more dynamic.”

Also commenting was Nadine Goldfoot, Managing Partner of Fragomen’s UK practice: “This analysis will rightly inform the evidence-based case for policies and an immigration architecture that distinctly encourages, supports and nurtures entrepreneur-arrivals. As the analysis highlights, foreign-born startup founders have been and are integral to the success of the UK’s entrepreneurial ecosystem. Reforms to ensure we continue to attract the world’s brightest minds to the UK, to collaborate alongside homegrown innovators, is a recipe for continued and dynamic economic growth.”

Policy recommendations in full: 

• Reform eligibility thresholds to help startups and high-growth businesses access talent
• Harness the Immigration Salary List to buttress the Government’s industrial priorities
• Negotiate Youth Mobility Schemes with the European Union and the United States
• Lower visa fees for high-skilled immigrants in line with international competitors
• Expand the High Potential Individual visa to more universities
• Build a specialised task force to recruit international talent
• Grant advanced STEM students Indefinite Leave to Remain upon graduation
• Introduce the world’s first Global Talent Exam to actively recruit the world’s brightest individuals