MAC recommends that the Government should substantially reform the visa route for entrepreneurs
The Migration Advisory Committee (MAC) last Thursday released its comprehensive review of the Tier 1 Entrepreneur and Graduate Entrepreneur routes of the points-based system (PBS).
The 198-page MAC report can be read here.
Image credit: UK GovernmentFollowing its review, the MAC recommends that the Government should substantially reform the visa route for entrepreneurs, with Committee Chair Professor Sir David Metcalf CBE saying there was considerable scope to do so.
Under the existing route, the MAC says it found clear examples of migrants establishing highly innovative, high-growth potential businesses, but also found substantial evidence of low quality businesses being established.
Out of the 13,746 individuals granted Tier 1 (Entrepreneur) or Tier 1 (Graduate Entrepreneur) visas since 2008, the MAC identified 1,580 active companies registered on the Inter-Departmental Business Register who employ a total of 9,850 people and generate a combined annual turnover of £1.45 billion. However, the report added that less than one per cent of companies (15 businesses) are responsible for 64 per cent of that turnover (£930 million).
The Committee says a more selective approach would improve the quality of entrepreneurs and maximise the economic benefit to the UK, and it recommended that the Government considers introducing a visa route specifically for talented entrepreneurs looking to establish start-up businesses in the UK.
"The Tier 1 (Graduate Entrepreneur) route works well and it makes sense to expand this route to allow a small number of UKTI-approved accelerator programmes to endorse high potential entrepreneurs," Sir David Metcalf said.
A MAC press release highlighted the following recommendations from its report:
• The Government should consider introducing a separate visa route for talented entrepreneurs looking to establish start-up businesses in the UK. This low-volume, highly selective route would aim to attract the best entrepreneurial talent, with UK Trade & Investment (UKTI)-approved accelerator programmes allowed to endorse individuals for a limited number of visas.
• Where appropriate partners are identified, the Government may wish to build third party endorsement into the selection process. In particular, the Home Office could work with UKTI and the UK Business Angels Association (UKBAA) to explore the feasibility of approving selected angel investor networks or syndicates to provide third party endorsement under the Tier 1 (Entrepreneur) route.
• The selection of migrant entrepreneurs should be carried out by industry experts where possible. Options for assessing the applications could include: appointing a panel of experts with expertise in early-stage entrepreneurship, such as angel investors or venture capitalists; recruiting specialist immigration officers qualified to review business plans; working with other government departments such as UKTI or BIS; or outsourcing the assessment of business plans to a professional services firm.
• The entrepreneur visa routes should aim to attract entrepreneurs with innovative business proposals.