BUSINESSWEEK ONLINE : FEBRUARY 28, 2000 ISSUE
INTERNATIONAL -- EUROPEAN COVER STORY "There Are More Opportunities for Everyone" Dutch immigration expert Jan Rath talks about foreign entrepeneurs moving up in the Netherlands Jan Rath, a researcher at the Institute for Migration & Ethnic Studies at the University of Amsterdam, is one of Europe's leading experts on immigrant entrepreneurs. He has hosted several international conferences on the subject. His research shows that, while institutionalized prejudices persist, the overall oulook for immigrants is improving. The key, in his view, is a meeting of the cultures: Immigrants must try to extend their reach beyond their communities -- by joining trade groups, for example. Banks, meanwhile, need to target immigrant groups for loans. Rath recently spoke with Business Week Brussels Correspondent William Echikson. Here are edited excerpts of their conversation: Q: What are the main obstacles for immigrants to start their own companies? A: There are regulations that make it difficult for immigrants to enter professions. In the U.S., immigrants often start out by becoming cab drivers. But here the way of giving permits is quite strict. Dutch people control the networks. Fortunately, the government has proposed a bill to deregulate the taxi trade. The cab drivers are angry: They fear more competition. But this is definitely to the advantage of the consumer -- and the immigrant. There are countless other examples. In order to sell at open-air markets, you need a permit. In my neighborhood, the waiting list is more than 15 years. The Netherlands is a very regulated country, but it isn't the worst in this regard. Germany and Austria are even more regulated Q: Is their particular prejudice against Muslim immigrants? A: Yes. Our Turks and Moroccans must follow specific dietary laws. They want their lamb slaughtered ritually. So it would be a good entrepreneurial activity for Muslim butchers. But butchers here need a permit and must pass exams. The exams included questions about pork, which, of course, the Muslims didn't know how to answer, since they don't eat pork. A couple of Turks and Moroccans set up shops without permits. Sometimes they were tolerated. Other times, they were forced to close down. Q: Are these restrictions coming down? A: Yes. Our government is removing the barriers for entrepreneurs. Of course, this doesn't always help the immigrants, either. A couple of years ago, the government freed bread prices. This resulted in a rat race among Turkish bakers, who tried to sell it cheaper and cheaper. They had to hire illegal aliens in order to keep down prices. So a law meant to encourage new businesses ended up hurting them. Also, we now allow large supermarkets to stay open until 10 p.m. This has hurt immigrant entrepreneurs who used to compete by keeping their small food shops open late. So deregulation has its pros and cons. Q: But what's the overall trend? A: There is a substantial growth of small immigrant entrepreneurs. The share of immigrant entrepreneurs is approaching that of native Dutch. Some groups, primarily the Chinese and Turks, are particularly active. This rise in activity took off when there was huge unemployment among immigrants and some of them decided to create their own work. Also, our economy now is booming, and that helps. There are more opportunities for everyone. Q: What types of field are attracting immigrant entrepreneurs? A: Most of the immigrant firms set up shops in the neighborhoods. These are often places where native Dutch don't go. Most immigrant firms are active in the retail sector and particularly in restaurants. But you can also see them in services. There are even some Internet entrepreneurs. Q: Are the immigrants going up the value chain? A: Yes. If you look at the restaurant field, the Chinese and Indonesians used to be at the lower end of the market. There used to be a Chinese [restaurant] every six blocks here in Amsterdam. A lot of the shops had to close down. But the survivors invested and now make better food in nicer surroundings. There is even a Chinese restaurant here that has received a Michelin star. It's the same in other fields. The Islamic butchers who used to be just retailers now have bought slaughterhouses. One butcher I heard was even supplying KLM with meat for Muslim customers. Q: What are the problems facing immigrant entrepreneurs? A: A lot [of them] lack capital. Banks seem to be reluctant to give credit. It's not just prejudice. You need to have a good business plan to get a loan, and a lot of immigrants are not able to produce one. So many stop trying to find credit and depend on loans from the family. But the banks also often ignore the immigrant market. They need to start hiring Turkish and other immigrant account managers. They should target specific immigrant groups. Q: Do you think the immigrant entrepreneurs will succeed? A: The key is whether immigrant firms can break out of their ghetto and cater to the larger public. This is hard. Immigrants often don't join the trade association. They should. Q: What's the government attitude towards immigrant entrepreneurs? A: If you ask politicians, they of course say [immigrants provide a culural] richness. Compared with other European countries, the situation is good here. But this doesn't mean that immigrants are always welcome or ever taken seriously. You still hear too many jokes about blacks and Turks. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					Unsung Heroes (int'l edition) EUROPEAN COVER IMAGE: Unsung Heroes CHART: Where Europe's Immigrants Go TABLE: Showing Initiative TABLE: Fortress Europe ONLINE ORIGINAL: "There Are More Opportunities for Everyone" ONLINE ORIGINAL: Europe Must "Get More People of Working Age" INTERACT E-Mail to Business Week Online

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