Ex-Northvolters want to start businesses – to stay in Skellefteå

Following the lay-offs at Northvolt, more people have begun exploring the possibility of starting their own businesses in Skellefteå. Some are motivated by a long-held dream, while others see it as a means to stay in Sweden.
However, for those from non-EU countries, the path is filled with challenges.
– There are strict requirements that must be met, says Hanna Geurtsen from Migrationsverket.

Employees leave their shifts at Northvolt's factory in Skellefteå the day after the announcement that 1,000 workers will be let go from the facility.

Employees leave their shifts at Northvolt's factory in Skellefteå the day after the announcement that 1,000 workers will be let go from the facility.

Foto: Pontus Lundahl/TT

Skellefteå2024-12-18 10:30

Sima Haddadin and Angelica Falk work as business advisors at Nyföretagarcentrum in Skellefteå. They offer free consultations to people interested in starting their own businesses.

This autumn, they have seen a significant increase in budding entrepreneurs.

– Last year, we had 260 people coming to us. This year, it’s more than 400, says Angelica Falk, who is also the operations manager.

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Sima Haddadin and Angelica Falk work at the Nyföretagarcentrum in Skellefteå. They have noticed a growing number of people interested in starting their own businesses.

To meet the demand, they have implemented special measures. For example, some consultations have been conducted in a group format, where participants were provided with information about what is required to start and run a business.

Falk and Haddadin note that they draw some parallels with the situation during the pandemic when the numbers also increased significantly.

– It’s not unusual for people to have carried an idea with them their entire lives but haven’t acted on it because they had another job. A change in circumstances gives them the motivation to pursue that idea, says Falk.

This year has seen a notable increase in the number of non-Swedes looking for advice. The share of foreign-born individuals has increased from 22 to 45 percent, and those from third countries (outside the EU) have increased from 17 to 33 percent.

– Among these are people who see entrepreneurship as a chance to create their own employment and thus stay in Skellefteå. It's obvious that many really do want to stay in the area, says Haddadin.

However, starting a business and becoming self-employed is easier said than done, especially if you are not a Swedish citizen or from another EU country.

– In some cases, starting a business has seemed an attractive way to remain in Sweden, but strict requirements must be met, explains Hanna Geurtsen, assistant team leader at Migrationsverket's focus area for work permits.

The main challenge is that former employees of Northvolt (or any other employer) who want to start a business must apply to Migrationsverket for a change to their residence permit.

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Migrationsverket's website states that applications must be submitted from the applicant's home country. However, Hanna Geurtsen from the agency, clarifies that they will not automatically reject applications filed from within Sweden.

While it's possible to alter the residence permit, approval requires meeting the following criteria:

  • A well-developed and sustainable long-term business idea and plan, as assessed by Migrationsverket.
  • Demonstration of a crucial role as a key person within the business.
  • Relevant industry experience or prior experience running a business.
  • Sufficient private funds to support oneself during the startup phase: 200,000 kronor for the applicant, 100,000 kronor for a partner, and 50,000 kronor per child.

Additionally, Migrationsverket's website states that applications should be submitted from the applicant's home country. However, Geurtsen asserts that applications submitted from within Sweden are not automatically rejected, but that an application must be made before the current visa expires.

– To change the basis of your residence permit, you must apply before your current permit elapses. Otherwise, you will need to leave the country and apply from abroad, she explains.

She acknowledges the frustration this can cause for those exploring business opportunities in Sweden, as clear-cut answers are not always possible, because this is a new situation that everyone concerned is trying to figure out.

– We cannot provide definitive answers until we have assessed a specific case. General guidance is difficult, says Geurtsen, while emphasising their increased preparedness for these types of applications and related inquiries.

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Migrationsverket is the authority responsible for assessing whether the business idea and business plan are strong enough.

Haddadin and Falk of Nyföretagarcentrum have great respect for those exploring all avenues to remain in Skellefteå.

– We help evaluate business ideas, develop business plans, and budgets, but the authorities ultimately determine their viability, says Falk, who praises the current entrepreneurial spirit of non-Swedes in Skellefteå.

– It's admirable to see the courage, willingness, and drive of these individuals, who maintain their spirits despite the disappointments and uncertainties they face. It's truly impressive, says Falk.