Migrant entrepreneurs and financial access in Sweden: A critical review of financial inclusion and institutional barriers

Migrant entrepreneurs fulfill a crucial role in economic development by fostering innovation, creating job opportunities, and promoting market diversification. They introduce distinctive perspectives, competencies, and cultural knowledge that enhance local economies and bolster social unity. Despite their substantial contributions, they often encounter significant financial challenges, largely due to inadequate credit histories, stringent lending criteria, and persistent biases within financial institutions. These barriers not only impede their capacity to initiate and expand businesses but also perpetuate economic exclusion and inequality. This research investigates the interplay between financial inclusion, human capital, and social networks in shaping the entrepreneurial outcomes of migrant entrepreneurs in Sweden. In particular, it scrutinizes how restricted access to formal financial services correlates with diverse levels of education, experience, and communal support to influence entrepreneurial success. Through an analysis of obstacles to financial accessibility, regulatory constraints, and informal support systems, this study underscores the critical importance of financial literacy, alternative credit evaluation methods, and policy interventions in improving financial access and engagement. Moreover, comparative examinations from various regions underscore the necessity for inclusive financial systems that are tailored to the unique challenges faced by migrant entrepreneurs. These systems encompass culturally attuned banking services, microfinance alternatives, and fintech innovations that cater to the specific needs of migrants. The findings suggest that targeted financial policies, advancements in financial technology, and community-centered support frameworks can enhance financial inclusion, thereby contributing to the sustainability and growth of enterprises owned by migrants. In conclusion, the research provides substantial recommendations for policymakers, financial institutions, and academics seeking to bridge the financial divide and empower migrant entrepreneurship as a driver of inclusive and sustainable economic growth. By addressing systemic barriers and harnessing digital innovation and social capital, stakeholders can cultivate a more equitable entrepreneurial ecosystem that benefits both migrants and host economies.