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INFO RUEHLA/AMCONSUL BARCELONA PRIORITY 4284

UNCLAS SECTION 01 OF 03 MADRID 001234 
 
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E.O. 12958: DECL: N/A 
TAGS: ECON EAID PREL SCUL SOCI XF XI ZR ZP CN PU MV
SO, SP 
SUBJECT: MISSION SPAIN ROUNDTABLE ON "ENTREPRENEURSHIP SUMMIT" 
 
REF: (A) STATE 112468; (B) MADRID 1149; (C) MADRID 1144 
 
SBU - ENTIRE TEXT 
 
¶1.   SUMMARY:  As part of Post's ongoing outreach to migrant, 
ethnic, and other marginalized communities, and in response to 
tasking in reftel (A), Embassy Madrid hosted a roundtable on 
December 17 with Muslim entrepreneurs, representatives of NGOs 
and institutions representing Muslim interests, and academics, 
including nominees for the Entrepreneur Summit.  Participants 
highlighted some of the challenges faced by Muslim 
entrepreneurs - and Muslims in general - including negative 
stereotyping; informal discrimination; institutional 
discrimination in Spanish laws that restrict  Muslims' ability 
to gain residency and establishing businesses; barriers and 
taboos within Muslim communities with respect to the 
participation of women in the workplace; language barriers; 
access to credit; and the lack of consensus and coordination 
among Spain's two main Muslim federations.  There was general 
agreement on the importance of education and the promotion of 
entrepreneurship from an early age, dissemination of 
information about entrepreneurship and economic opportunities, 
and the need to strengthen institutions that support and 
promote entrepreneurship and access to credit.  END SUMMARY 
 
¶2.   In opening remarks as host, the Public Affairs Officer 
(PAO) linked the roundtable to the initiative proposed by 
President Obama in his June 5 speech at Cairo University to 
hold a "Summit on Entrepreneurship" early in 2010, and 
characterized the roundtable as part of the Embassy's ongoing 
dialogue with a cross-section of Spanish society, including 
immigrants, Muslims and other marginalized groups. 
 
--------------------------------------- 
INTEGRATION AND DISCRIMINATION 
--------------------------------------- 
¶3.  Participants reached back centuries to the 1492 surrender 
of the last Muslim kingdom in Spain and the subsequent 
expulsion of the Muslim population from the peninsula in 1609 
to emphasize that a negative image of Islam has been burnished 
in Spanish culture; this legacy, coupled with more the more 
recent experience with Islamic terrorism, extremist Islamic 
ideologies, language barriers, the relatively recent influx of 
Muslim immigrants, and the lower economic status of the Muslim 
immigrant communities all contribute to negative stereotyping 
of Muslims in Spain.  (One participant referred 
to "Islamophobia"). 
 
¶4.  Participants noted that some obstacles to Muslim 
entrepreneurship and integration are due to discrimination by 
Spanish Government (GOS) regulations or by Spanish society in 
general.  For example, they felt that Spanish immigration law 
discriminated against Arab and Muslim immigrants, who have to 
wait nearly twice as long as Latin American immigrants (i.e., 
10 or more years) to obtain legal, permanent resident status or 
naturalization, a requirement for establishing a business. 
(NOTE: The GOS would likely cite the strong historical and 
ancestral ties to Latin America for the more favorable 
treatment).  Overall, participants believe Muslims face more 
obstacles to obtain start-up funds or micro-credit for small 
businesses.  Other obstacles arise from restrictions from 
within the Muslim communities themselves, for example, ultra- 
conservative interpretations of Islam, discrimination against 
women, or self-imposed isolationism that discourages 
integration and co-existence. 
 
------------------------------------ 
OTHER CHALLENGES 
------------------------------------ 
¶5.  Most participants agreed that, overall, "Spain lacks a 
tradition of entrepreneurship."  This affects not only Muslims, 
but all segments of society.  Thus, it is more common for 
Spaniards to aspire to a job in government or in an established 
company than to start one's own company. 
 
¶6.  Not all Muslims intend to become permanent residents of 
Spain; many plan to work here only until they save enough to 
return to their countries of origin to set up businesses 
there.  Therefore, a global strategy would have to account for 
this phenomenon among some temporary "economic immigrant" 
groups. 
 
¶7.  Participants agreed that the two Islamic federations 
recognized by the GOS do not see eye-to-eye, are internally 
 
MADRID 00001234  002 OF 003 
 
 
fragmented, are not democratic, and don't reflect the views of 
the communities they are supposed to represent.  As a result, 
they are not effective advocates of Muslim interests, and do 
not have a constructive dialogue with the GOS. 
 
¶8.  There was general consensus that entrepreneurship is not in 
conflict with Islamic values, and there certainly are many more 
entrepreneurs among the Muslim populations of Spain than are 
known publicly; however, due to the difficulty in obtaining the 
required residency permits to open a business, many businesses 
operate clandestinely or under a "front" provided by a legal 
resident.  This creates an unmonitored informal economy that 
runs parallel to the formal economy and does not contribute to 
economic statistics - or the tax rolls.  Also, some business 
people prefer to be "entrepreneurs" as opposed to "Muslim 
entrepreneurs." 
 
----------------------------------------- 
MECHANISMS FOR PROMOTING ENTREPRENEURSHIP 
----------------------------------------- 
¶9.  Several institutions help promote entrepreneurship in 
Spain; however, Muslim or Arab access to and participation in 
their initiatives and programs are negligible.  For example, a 
program of the Madrid regional government called "Madrid 
Emprende" ("Madrid Start-up"), promotes small enterprise by 
helping entrepreneurs navigate the bureaucracy.  The Young 
Entrepreneurs club has existed for 25 years; however, despite 
moral support from the Prince of Asturias, this organization 
has little impact in promoting entrepreneurship.  Savings banks 
in Spain offer some micro credit under restrictive conditions; 
however, the overall lack of access to funding for small 
businesses is creating a void which is being filled in some 
cases by Arab banks and financial interests controlled from 
Morocco and Saudi Arabia, among other foreign sources. 
 
¶10. The Halal Institute of Csrdoba is registered with the 
Government of Spain and is authorized to certify products as 
compliant with Islamic standards.  This regulatory organization 
is providing opportunities for Muslim-owned businesses in Spain 
to gain access to the growing halal market in Europe.  (Note: 
The Director General of the Halal Institute has been pre- 
selected as a participant in the Summit.) 
 
------------------- 
PROPOSALS 
------------------- 
¶11.  Many of the proposals suggested by the participants could 
generate positive benefits across Spanish society.  They 
reflected a perception shared by many of the participants that, 
while Muslims feel marginalized here, Muslim communities in 
Spain desire not special concessions, but rather equal access 
to Spanish society and to economic opportunities. In this 
context, Muslim entrepreneurship might need a jump-start with 
special incentives for Muslim businesspeople. 
 
(a) Participants noted that if Spain is to develop an 
entrepreneurial spirit, the first step is to encourage and 
develop a new culture of entrepreneurship.  Training and 
mentoring in entrepreneurial practices and business development 
should begin at an early age in public schools with education 
and programs to promote a better understanding of 
entrepreneurship.  Universities should develop business 
curricula that teach entrepreneurship. 
 
(b) The Spanish Government, NGOs and businesses need to focus 
more on creating opportunities for women and young 
entrepreneurs.  Establishment of an "entrepreneurship fund" or 
promoting commercial loans for entrepreneurs, specifically 
including Muslim entrepreneurs, would be a useful step. 
 
(c) The environmental degradation in Arab countries presents 
opportunities to develop entrepreneurial programs that promote 
sustainable development, respond to the needs of populations, 
and establish development models that are consistent with Arab 
and Muslim values, culture, and traditions.  Those traditions 
include respect for water and nature, two critical factors for 
human survival which support worldwide efforts to address 
environmental issues. 
 
(d)  With respect to the issues of discrimination and negative 
stereotyping, participants cited traditional values, building 
on the ancient and positive legacy of Islam in Spain:  a rich 
cultural heritage which can still be seen in the architecture 
and landscape, the tradition of tolerance (to which President 
 
MADRID 00001234  003 OF 003 
 
 
Obama referred in his Cairo speech), and a respect for the 
environment.  Access to Spanish language instruction and 
activities would promote integration and help demystify the 
Muslim community for Spaniards. 
 
(e)  Social media offer forums for promoting entrepreneurship 
and for confronting and correcting negative stereotypes.  A 
representative from WebIslam, the largest Spanish language 
Muslim website and a member of the European Media Islamic 
Network (EMIN), a cooperative venture among Islamic websites in 
Europe, was present and recognized that social media and 
websites are avenues to educate the public on both issues. 
 
------------------------- 
OBSERVATIONS 
------------------------- 
 
¶12.  Post was fortunate to have a window of opportunity guest 
at the roundtable.  Ms. Helen Hatab Samhan, Executive Director 
of the Arab American Institute Foundation, was in Madrid at the 
invitation of a local institution, Casa Arabe, whose mission is 
to promote better understanding of Arabs and Islam.  In 
addition to the proposals raised by local participants, many of 
Samhan's observations and conclusions tracked closely with 
Post's own: 
 
(a) The Muslim communities in Spain are still relatively new 
and not yet integrated into society.  Although the Muslim 
populations have grown significantly in the past 20 years, as a 
whole, they still only represent just over two percent of the 
Spanish population. 
 
(b) Spain and Muslims must address some basic issues of social 
integration, residency status, and religious accommodation 
before any serious progress can be made in promoting Muslim 
entrepreneurship.  Many of the institutions and NGOs working on 
these issues are dependent on government funds and therefore 
subject to political winds and uncertain budgets. 
 
(c) Spanish businesses appear to be unaware or uninterested in 
promoting integration.  Spanish government initiatives and 
program are not sufficiently funded or focused on the problems. 
 
(d) American or other successful entrepreneurs may be effective 
mentors to Spanish entrepreneurs. 
 
¶13.  Embassy Madrid and Consulate General Barcelona will 
continue to engage these participants and other minority and 
marginalized audiences to seek long-term dialogue and solutions 
to these issues. 
 
CHACON