Italy: Migrant bank – a colourful GDP

Immigrants, who account for about 4% of the Italian population, produced 111 billion euros or 8.8% of Italy?s GDP in 2006. This is what emerges from a recent estimate formulated by the Istituto Tagliacarne and included in the Unioncamere report that was presented to the Italian Government in May. At the end of 2006 the Italian Revenue?s Office calculated that in 2005 immigrants had contributed 86,7 billion euros, 6.1% of the GDP. The difference between the estimates for 2005 and 2006 lies in the fact that the 2006 statistics included revenue created by irregular labour (these facts were obtained from estimates calculated by research institutes specialised in immigration issues, such as the Ismu in Milan).

Another surprising fact is the increase in immigrant entrepreneurs ? nearly a third (34.3%) of new enterprises in Italy are headed by foreigners, meaning that there are in total 228 thousand immigrant entrepreneurs across Italy, nearly 20 thousand in Milan followed by 16 thousand in Rome, 10 thousand in Turin and 7 thousand in Florence.

?In the last few years the number of new enterprises in Italy had begun to decrease? says the director of Centro Studi Unioncamere, Claudio Gagliardi. ?The reversal of this trend can be attributed to immigration, especially as far as commercial, construction and manufacturing industries are concerned. The enterprises opened by foreigners tend to be concentrated around the big cities, especially Milan and Rome, and in the vicinity of industrial areas? .

But where does the wealth produced by immigrants end up? 62% is spent nationally, within Italian borders, 16% is sent to immigrant?s native countries while the remaining 22% becomes savings (data source: Abi-Cespi).

There are, however, a number problems related to immigrant entrepreneurship, explains Otto Bitjoka who was born in Cameroon but has spent the last 30 years in Italy as an economist and entrepreneur: ? one of these is the access to credit available to immigrants who wish to open their own businesses, only 3% of immigrant entrepreneurs have taken out bank loans and innovative measures are needed to keep up with recent changes. Another problem is that the relations between Italian banks and banks in countries of origin is often weak?. This is confirmed by Enzo Napolitano, the director of a network that favours intercultural economy called Etnica (www.etnica.biz), who says that: ?even though only 57% of immigrants have bank accounts, they are only given access to basic services and a low access to credit?. The Italian postal service, Poste Italiane, has declared that more than 400 thousand immigrants have opened postal accounts and almost 200 thousand have Postepay electronic payment cards.

Despite these significant numbers bank savings, if owned by immigrants, remain ?invisible? says Etnica?s Napolitano: ? there is not a single consortium for immigrant entrepreneurs, banks are rigid in their treatment of immigrants and ask for many guarantees.? Napolitano calls for greater courage: ?it is as if banks were afraid of spoiling their image, the products thought out for immigrants are kept under the counter and there is no desire to gamble any capital. One example of a best practice can be found in Emilbanca?s investment into Ganacoop cooperative. Their motive was not philanthropic but they are prepared to be patient before seeing a return on their investment?.

Among this new generation of entrepreneurs there are those who are trying to create a network. One of these is Josè Galvez, a 40 year old Ecuadorian with a degree and MA in Management of Immigration from Milan?s Bocconi University, who created an online service called Impresaetnica.it that aims to create a point of reference and a space where immigrant entrepreneurs can meet and exchange experiences and information. ?It must be said that many immigrants are first time entrepreneurs who see this as an opportunity to secure a legal livelihood here in Italy – highlights Mr. Galvez – there is, however, also a great desire to succeed joined with the ability to take on risks. It is still difficult for an immigrant to present a business plan to a bank and obtain credit because there is still much diffidence in Italy when it comes to immigrants. The typical image is that of the poor immigrant who speaks no Italian and is incapable of organising his labour?.

Things, however, are changing quickly. This is demonstrated by the recent emergence of associations of immigrant entrepreneurs (such as Aipel, founded by Augustin Mujyarugamba, a Rwandan engineer www.immigrantiimprenditori.it) and the support from local structures such as Asiim, a project financed by Milan?s Chamber of Commerce, that offers free business advice.