Popular Immigrant-Owned Businesses in the UK

At Remitly, we recognise the huge contribution immigrant entrepreneurs make to the UK’s economy. Their businesses create jobs that employ natives and foreigners alike, stimulate economic activity, drive innovation, and generate tax revenue.

As long as immigrants have been coming to the UK, they’ve demonstrated their entrepreneurial spirit. Indeed some of these businesses have been hugely successful. So let’s take a look at some of the most popular immigrant-owned businesses, and immigrant entrepreneurs’ considerable contribution to the UK.

The Impact of Immigrant Entrepreneurs

A 2023 study showed that 39 of the top 100 fastest-growing companies in the UK had a foreign-born founder. These founders were drawn from 28 countries across five continents. They’re contributing to the economy in diverse sectors, including:

Manufacturing
Retail
Hospitality
Professional services
Food, e.g. restaurants and grocery stores
Technology, e.g. FinTech
Fashion

Overall, we doubt there’s any part of the UK economy that hasn’t been touched in some way by immigrant-founded businesses.

Early Immigrant Businesses, Historical Contributions, and Development

It’s unclear when the first immigrant-owned businesses were started in the UK—certainly a long time ago. However, historical records give us a glimpse into early immigrant businesses and their contributions to the development of the UK’s current economic landscape.

Initially, many of these businesses served their communities, providing essential services and items that would make people settling in the UK feel connected to their own culture. Early community-centred businesses that operated in the UK during the 19th century—and even before then—included:

Italian communities established food businesses/cafes in cities like Manchester and London, selling Italian cuisine. In 1959 La Trattoria Terrazza opened in London, and Italian food became “cool” as celebrities began to eat there. From then on, Italian cuisine’s popularity started to surge and the founders opened more restaurants in Bristol, Manchester and Leeds—the UK’s first chain of Italian eateries.
Jewish people from eastern Europe shaped the UK’s textile sector, especially in London. In fact, the Museum of London Docklands hosted an exhibition which highlighted just how much influence Jewish designers and tailors had on British fashion trends during the 20th century.
The Irish community set up pubs and food businesses, influencing the UK’s beer brewing and drinking culture. Many of Britain’s best-known stout-style beers are Irish in origin. Guinness, for example, is the best-selling Irish stout globally.
South Asian businesses sprang up in the food and retail sector in particular. Popular products coming into Britain during this era were spices such as cloves, mace, and nutmeg. These businesses also brought in new and exciting textiles.

A great example of a successful early South Asian business is the Hindoostane Coffee House. The first Indian restaurant in London, it was established by an 18th-century Bengali immigrant. South Asian food is now so popular in Britain that a dish invented in the country, chicken tikka masala, rivals fish and chips as the UK’s national dish.

Trailblazing Immigrant-Owned Businesses

Some of the most successful immigrant-owned businesses have been around for a long time. And even some that are no longer around became part of the business landscape in Britain.

The Hindoostane Coffee House

Although it no longer exists, the Hindoostane Coffee House is a great example of an immigrant-owned business success story. It was such a success that there’s a plaque at its 19th-century location.

In many ways, the Coffee House set down a template of business practices for other immigrants to follow:

Be authentic
The business introduced authentic Indian food culture to Britain, attracting the British elite and popularising Indian cuisine.
Innovate
The restaurant “Indianised” British dishes as an entry point for UK diners who weren’t yet ready to immerse themselves fully in authentic Indian food.
Offer a full experience
The restaurant also invested in its ambience, providing an exotic setting that complemented its cuisine and drew in customers.
Location matters for brick-and-mortar businesses
The innovative restaurant was set up in London, which at the time was the world’s largest city and port. Then, as now, London was a hub of international trade with a powerful economy and diverse population. So the city could support such new ventures.
Understand local culture to make your customers feel special
The restaurant installed bamboo furniture. In the 1800s, bamboo was fashionable, oozing class and signifying that the restaurant’s clientele were well-travelled and cosmopolitan.

Other lessons to be learned

Immigrant-founded businesses like the Hindoostane Coffee House, Carwow, PensionBee, and ToucanBox have blazed the trail. Other foreign-born entrepreneurs can follow in their footsteps and succeed in the UK if they draw on some important lessons they learned:

Partner with an expert
ToucanBox’s Virginie Charles-Dear had an idea on how to keep her young children creatively busy while she attended to other things. However, to create an age-appropriate product, she needed an expert. So she partnered and co-founded the business with a Montessori teacher.
“Make lemonade”
PensionBee and ToucanBox were both founded out of difficulties. In each case, the founders saw a need in the system and created lucrative solutions that have crossed beyond ‌UK borders.
Be real
Customers love honest, substantive, and authentic reviews before they spend their money. This is what Carwow has capitalised on so successfully.
Embrace convenience
In today’s fast-paced world, convenience sells; PensionBee customers can manage their pensions from their mobile devices. ToucanBox customers subscribe to a service that delivers their items on schedule. And Carwow does all the screening for their customers before the transaction in a car deal.
Invest in technology
Bricks-and-mortar locations are great if your business can afford one. However, technology wins in the modern business world; modern customers often visit a business online before they do in person. More than half of UK consumers do online research before making a purchase, so an active social media presence and a strong website are essential pretty much from the start.

Opportunities and Challenges for Immigrant Entrepreneurs

The UK offers business-minded immigrants great opportunities to thrive. But, as is often the case for immigrants, there are of course a few challenges too.

Market opportunities and business sectors

Immigrants leverage their different cultural experiences and perspectives, creating flourishing businesses in a highly diverse UK population.

Niche opportunities
In such a multicultural country as the UK, immigrants create businesses that tap into their home culture and introduce it to the British public. Perhaps the most obvious example is food; there are countless international restaurants thriving the UK. Chinese restaurants alone number over 10,000, for example.
Global connections
Immigrant entrepreneurs enjoy better sourcing and global connections from their home country, especially when bringing in authentic items. For example, families abroad can connect them with native suppliers of materials like fabrics or spices for the textile and food industries.
Community support
There isn’t a legally recognised immigrant business association in the UK. However, immigrant entrepreneurs get business support from organisations such as Action on Community Health (ACH) through mentorship opportunities, training, and networking events.
Government initiatives
The UK government regularly assesses and updates regulations to make the UK attractive to immigrant founders.

Obstacles, and Strategies for Overcoming Them

The UK’s government has taken steps to ensure a positive business environment for immigrants, significantly reducing obstacles and challenges for business owners from overseas.

But there will always be some challenges for foreign-born founders in the UK:

Access to capital
The Innovator Founder visa requires applicants to have at least £1,270 in their bank account for at least 28 consecutive days before applying. This kind of money is unlikely to be enough to launch a business idea and live comfortably in the UK. Additionally, limited credit history can hinder newcomers to the UK from accessing credit.
Complex regulations
Navigating the complex business landscape spanning permits, licensing, and taxes is challenging.
Language barrier
Immigrant founders need Level B2 proficiency to apply for an Innovator Founder visa, which allows them to conduct business in the UK. So, anyone living in the UK under a family visa, for example, can’t start a business unless they meet ALL the criteria for the business visa, including English proficiency. This may lock out some founders for any number of reasons.
Cultural differences
Cultural differences may be confusing for new immigrant founders in the UK. British humour, for example, can be baffling to people from overseas and immigrants from cultures that don’t appreciate or even notice sarcasm, for example, may find this confusing. So in things like marketing and advertising, understanding British culture is vital.

Policies Affecting Immigrant Entrepreneurs

There’s a lot to think about as it is when starting a business. For would-be immigrant entrepreneurs, there are some key policies to keep in mind:

The Innovator Founder visa has no minimum capital requirement for immigrant entrepreneurs. That makes it a bit easier than the old Entrepreneur Visa (Tier 1), which required immigrants to prove access to a minimum of £50,000 before starting a business.
The points-based immigration system means that only immigrants meeting set conditions such as English proficiency, and endorsement from a Home Office-approved endorsing body, can start a business in the UK.
The 2024 immigration rules raised skilled worker visa salaries by 50% to encourage British businesses to recruit from native talent first. This increased costs for immigrant businesses looking to hire.
The Home Office seeks to further reduce net immigration to the UK by introducing more stringent immigration policies. These policies will make it more difficult for immigrant businesses to find highly skilled employees from overseas.

Resources and Support Available for Immigrant Entrepreneurs

It’s not all bad news by any means—the government also supports immigrant business owners in many ways:

Providing government grants for immigrant businesses.
Formulating All-Party Parliamentary Groups (APPGs) such as the Ethnic Minority Business Owners APPG.
Offering free access to Growth Hubs, where entrepreneurs get free training on business management and funding opportunities.
Providing access to financial support through the British Business Bank.
Operating a network of local chambers to support immigrant-owned businesses, via the British Chambers of Commerce (BCC).

Future Outlook and Potential Developments

The future for immigrant-owned businesses in the UK is bright and there are opportunities among the challenges. Even the more stringent immigration rules, for example, may help established immigrant-owned businesses to recruit higher-skilled personnel to propel their business to new heights.

Trends and predictions for economic contributions of immigrant entrepreneurs

Looking forward, we’re expecting to see:

More technology-based businesses.
More businesses run by second-generation immigrants.
More focus on sustainability and Environmental, Social, and Governance (ESG) considerations.
Better access to business support and finance.
Investments in more diverse sectors, e.g. “green” jobs.
More remittances sent abroad due to immigrants’ increased earning potential and business proceeds.

Immigrant-founded and owned businesses are going to be around and successful for a very long time yet.

Frequently Asked Questions

What’s the impact of immigrant entrepreneurs on the UK’s economy?
Immigrant-owned businesses contribute £2 trillion to the UK’s Gross Domestic Product (GDP) annually, paying taxes worth £20 billion.

Are immigrant-owned businesses successful in the UK?
Yes. Immigrants run 39% of the 100 fastest-growing businesses. These businesses create jobs for natives and foreigners alike, contributing to the economy by driving innovation and paying tax revenue.

What are the notable success stories?
Businesses like Carwow, PensionBee, ToucanBox, and the Hindoostane Coffee House are noteworthy.

Does the UK government support immigrant businesses?
Yes. Through programs and initiatives like the Innovator Founder Visa, government grants for immigrant businesses, All-Party Parliamentary Groups (APPGs) such as the Ethnic Minority Business Owners APPG, Growth Hubs, the British Business Bank, and the British Chambers of Commerce (BCC).