By Corinn Olson 

Entrepreneurship is a path to refugee self-reliance. At a time when the global refugee population exceeds 43.7 million, it is more important than ever to recognize the endurance and motivation of refugees to self-employ and support their economic endeavors. By owning businesses, refugees also create jobs that provide economic opportunities for host citizens or fellow refugees and positively contributes to host country's economy. More income generated means less reliance on social welfare system and reduction in welfare spending.

Globally, 55% of refugees live in countries that significantly restrict their right to work. Even when a refugee is granted the right to formal employment in their host country, they face other social roadblocks to finding work. Language barriers, lack of local connections, and unrecognized foreign education or experience can restrict refugee employment and place individuals in jobs for which they are overqualified. 

Entrepreneurship can circumvent the informal and formal barriers to meaningful and productive refugee employment. A 2019 report shows that 13% of refugees in the US were entrepreneurs, compared to 11.7% of other immigrants and 9% of US born nationals. While refugee entrepreneurship varies by country, the traits of resilience and other factors position refugees to pursue and benefit from self-employment

Basket Weaving in Dzaleka Refugee Camp

The Dzaleka refugee camp in Malawi, a former prison camp built to house around 10,000 people, currently hosts over 50,000 refugees, most of whom originate from Burundi, Rwanda, and the Democratic Republic of Congo. The Malawian Refugees Act of 1989 creates a broad definition of “refugee” and specifies for non-refoulement, allowing many persecuted individuals to safely seek asylum in Malawi. However, this Act was enacted during a period of autocratic rule in Malawi when enforceable rights were not granted to citizens, much less refugees. Additionally, Malawi hosted over one million refugees from neighboring Mozambique during its civil war; and available resources were strained. Refugee activities were restricted by law to ease burden on the Malawian population. 

Because of the circumstances surrounding the Refugees Act, Malawian law does not guarantee the rights to education, freedom of movement, or unrestrained economic activity to refugees. 

By law, refugees may not leave the refugee camp for a period exceeding 24 hours. Additionally, they are prohibited from engaging in economic activity outside of the camp, which includes attempting to farm. The small amount of humanitarian support refugees receive does not cover their basic costs of survival. 

Without the right to work or access to land to grow food, refugees in the camp must develop creative and informal ways to support themselves. In 2010, a group of women living in the Dzaleka refugee camp came together and brainstormed ideas for how to improve their living situations. Frustrated by the lack of economic opportunities, they sought a way to make money within the confines of the 1989 Refugees Act. Basket weaving was singled out as a craft form through which they could create and sell products. Several members from Burundi already had the skill of weaving traditional baskets, and felt confident that they could teach it to the others. 

From this coalition, the Umoja Hand Craft Project was born, consisting of 50 refugee women group members who create their products and sell them to support themselves and their families. “Umoja,” a Swahili word for unity or one, represents the connection and support these refugee women have found professionally and emotionally through their weaving cooperative.

Materials for making baskets are bought within the camp and from nearby villages. The women pool their money and resources to loan weaving materials and cover the high travel costs associated with selling their goods at markets in nearby cities. By selling one medium sized basket, a woman can feed her family for a few days. Business fluctuates heavily, and the long hours spent on each basket are not always rewarded.

One place where the Umoja Woman Craft group sell their goods is the Tumaini Festival, which is held within the refugee camp to highlight the skills and entrepreneurial abilities of refugees. The festival not only serves to promote goodwill and understanding among refugees, Malawian hosts, and tourists, but it provides a platform for refugees to improve their economic situation by selling goods and services. 

Knitstanbul Social Entrepreneurship for Refugee Women in Istanbul

Malawi is not the only country that restricts the economic activities of its refugees. 

In Türkiye, refugees may remain in the country, but cannot work without a permit. The permits are only granted after six months of residency, and they are restricted by quotas that prioritize hiring Turkish workers. In such a situation, refugees established an initiative called Knitstanbul, which is a crafting business focusing on issues of loss and displacement and the politics of labor for refugees in Istanbul. Knitstanbul is composed of refugee women from Syria living in Istanbul under temporary protection status. Through this refugee-led social enterprise, buyers place orders online, and refugees in Türkiye create and ship the knitted goods. Like Umoja, Knitstanbul was formed out of the necessity to earn money while providing refugees with a supportive community and a guiding purpose. 

As these case examples in Malawi and Türkiye show, entrepreneurship can be a path to overcoming employment barriers and ensuring refugee self-reliance. Refugee entrepreneurship improves the lives of refugees through generating income, building community ties, and providing psychological empowerment. It allows refugees to grow their capital and invest in their host communities by patronizing businesses, paying taxes, and purchasing homes.