Europe is facing an increasing number of refugees and asylum seekers driven out from their homes by several large conflicts in the Middle East and Africa. It is estimated that there were 1.2 million asylum requests by the end of 2015 in the European Economic Area and Switzerland. This trend is likely as it is to persist and putting pressure on resources of countries tasked with the resettlement an
d integration of refugees. Despite the challenges created by this increasing number of displaced persons, refugees arrive in their destination country with two extraordinary assets, a tremendous capacity to build resilience in the face of adversity and a formidable drive to start a new life. Having successfully survived persecution on grounds such as race, religion, or political opinion, are resilient, industrious, and determined. Studies with long history of hosting refugees establish that foreign nationals are more likely than nationals to establish businesses (particularly during economic downturns), thus contributing to innovation, entrepreneurship economic growth and job development. Refugees have a long history of starting successful businesses in the UK. In the longer term, refugees could also address the EU's alarming demographic trends by improving the ratio of active workers. In the labour market, migrants can fill important niches both in fast-growing and declining sectors of the economy, and contribute to labour-market flexibility. The above potential rests on the prospect of stakeholders to economically and socially integrate refugees rapidly. Evidence shows that the sooner the integration process begins, the more effective it is. This however is a considerable challenge given limited resources. Only between 40 and 50 % of refugees are found to have secured steady employment after 5 years. This is wasteful, both in terms of resources used for supporting basic needs for those out of work, as well as wasteful in terms of talent and capabilities of internationally protected persons. It is widely recognised that displacement of people poses challenges for both refugees themselves, but also for host countries tasked with resettlement and integration. This however if managed well offers more advantages for host societies than it creates problems. It is well documented that achieving economic self-reliance of resettled refugees as quickly as possible is crucial for unlocking this medium and long term potential. Achieving this, however, has been identified as the ‘greatest challenge’ by both refugees themselves and agencies supporting them, not least due to lack of resources. Given the impetus to act on this very issue, the Restart Refugee Support (RRS) programme has as its primary goal to contribute to the rapid economic adjustment of refugees resettled in the UK. Our approach for achieving the above is through support of refugees’ own efforts to pursue livelihoods by utilising their existing productive capacities. For this to happen there are a number of obstacles that need to be overcome, where one important such is the lack of resources available to refugees needed to enable them to transition from home country to host country employment, be that funds for the purposes of labour market integration, or seed capital needed to restart or develop an existing business idea. However, many still face barriers to accessing credit facilities due to the stringent requirements of the credit scoring system used for assessment of applications. We recognise the important roles refugee enterprise and engagement of professional refugees play in wider regeneration and community cohesion strategies and thus seek to provide such individuals with access to funds they need to restart their professional lives. Interventions such as microfinance over last few decades have proven to be one of the most effective strategies for improvement of vulnerable groups’ economic situation. Riding on these successes RRS employs a similar method, yet improving on it but offering loans free of any costs (including interest) to borrowers, with compassionate repayment terms. Although repayment is lenient and based on the mutual agreement by both parties, it is important to us as it ensures funds can be recycled and that we can sustain the programme by lending available funds many times over. Our vision is to see newcomers thrive and become full, participating members of our shared communities. We believe that being a refugee is not a perpetual state of victimhood or want. It is a difficult period in one's life. The person who emerges, what they do, what they contribute, and the gains their host communities can reap, is more fluid and dependent on the groundwork laid. A significant proportion of those entering the UK have skills and experience in various professions and trades and have thus the resilience and creativity required to make a positive impact if provided with the right support. It is our aim is to help them to restart their careers in the new environment. Our services are focused on facilitating refugees’ own efforts in becoming self-reliant by providing cost-free loans for activities which lead to durable economic integration. Loans, bundled with mentorship where necessary, are offered to individuals for the purposes of labour market integration, or business start-up and development. This approach presents a dignified way of assisting displaced/resettled populations as they do not promote a culture of handouts, but rather aims to enable people to become economically active. It also fills an important gap as it makes available a range of funds to refugees that are not normally available due to lack of access to financial services. Although there are no borrowing costs associated with the loan, there is an expectation of future repayment. The timing and feasibility of this repayment will be assessed on an individual basis via evaluation of periodic reports which are submitted to us by the beneficiaries. These periodic reports help us to retain a relationship with loan recipients and identify if additional help is needed. We commit to reusing (recycling) any repaid funds in the programme area which will enable us to lend the same funds many times over. Consequently, the impact of the repayable assistance is greater than the initial amount of the assistance. It is important not to confuse RRS with other financial instruments such as microfinance even though the basic mechanism of both schemes is similar.
