occupied an important character in formatting a network of entrepreneurial human and ... begin to relocate a new typology of entrepreneurs; that is of diaspora entrepreneurs. ... war or experiencing interior conflict and social disturbance. Also ...
Diaspora Entrepreneurship: Reflections on a Novel Typology by: Hamza El Fasiki Published by uPublish.info
It would be edifying to make a position on how international or transnational entrepreneurship has occupied an important character in formatting a network of entrepreneurial human and economic recourses and expertise. Mulling over the significance of the economic prospective of a very big estimated number of intercontinental migrants dwelling in countries other than their country of origin urges our tendency to think of two important focal points: skills and money. With this thinking, we begin to relocate a new typology of entrepreneurs; that is of diaspora entrepreneurs. With the appearance of such a new variety, it is obviously witnessed that these international immigrants either tend to annually send money to support their family back home, which constitutes an important change stream in the financial link between migrants and their family members back home, or they themselves think of returning home and establishing their own local businesses. Either way, is locally accepted. However, diaspora entrepreneurship as both a before-and-after mindset pushes intercontinental entrepreneurs to hold an ethical obligation to return home and apply or replicate their entrepreneurial experience. Hence, while these remittances are characteristically person-to-person flows, we are also observing investments into small and medium enterprises by a new cadre of entrepreneurs from the diaspora community. Not only diaspora creates the escape of ideas - ideoscapes (A. Appadurai: 1996) or what we call the Brain Drain, but also the networking of entrepreneurial Brain Gain (J. Ortmans : Public Forum Institute). Diaspora entrepreneurs are becoming important change agents in their home country. Most of diaspora entrepreneurs have financially established themselves in the host counties. Their dynamism is now bringing back home capital, academic expertise and business wisdom all together to start enterprises in their countries of origin. In turn, their projects are impacting the local marketplace with the introduction of a new technology, new market breaks, new job opportunities, new products and services and business processes that are fostering innovation and enhancing competitiveness in the local economy. Despite the studies launched in the examinations of the role of diaspora entrepreneurs in directing investments toward their home countries (Global Entrepreneurship Monitor: 2012), another attention is requested to be paid over the nature of the diaspora entrepreneurs, their type of contribution and their limitations in promoting local economic growth. Probably, the difference between domestic entrepreneurs and diaspora entrepreneurs can be found in the resourcefulness capacity of these latter. Their knowledge of the local political, economic, and cultural environment, as well as their personal connections and linguistic abilities, may give members of diaspora a first push when investing in or starting businesses in their home countries (Migration Policy Institute: 2011). Yet, not all types of entrepreneurship make a contribution by the same token. Recent research, such the 2012 Global Entrepreneurship Monitor, shows the importance of distinguishing between what I shall articulate as "Necessity Diaspora Entrepreneurs" and "Opportunity Diaspora Entrepreneurs". In fact, a great quantity of necessity entrepreneurs may suggest those individuals who work for themselves because they cannot find opportunities in the labor market. Either they would replicate others' businesses or work for themchoices (Christensen et al, 2009) . Necessity diaspora entrepreneurs can be defined as those who immigrated out of a necessity and who are simply self-employed out a necessity as well. These unskilled immigrants or returnees who established their own businesses to create employment for themselves produce a very limited scope of
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economic help in the home country. Opportunity diaspora entrepreneurs, on the other hand, have different opportunities and approaches to starting businesses. Opportunity entrepreneurs make reference to individuals with an available atmosphere to start a business out of an opportunity (Ibid). Opportunity diaspora entrepreneurs with their high-skilled business knowledge overseas are equipped with a balanced wisdom in both selecting the type of opportunity in the home country and in being aware of their level of entrepreneurial activity (Global Entrepreneurship Monitor: 2012). Despite the fact that the two groups have very singular effects on development, a greater number of necessity diaspora entrepreneurs may not correlate with higher levels of economic growth. Opportunity diaspora entrepreneurs, on the other hand, are much more likely to have a constructive impact on economic growth. Experienced individuals who specialize in high-demand and rapidly growing sectors of the knowledge-based economy can create huge economic breaks and profits for businesses in their home countries. Despite the advantages of exerting a pull on diaspora entrepreneurs, many emergent countries have experienced merely restricted accomplishments in essentially doing so, particularly those at war or experiencing interior conflict and social disturbance. Also, one of the factors that do not create suitable start-up atmospheres for diaspora entrepreneurs is the intervention of the government. Complicated tax laws, limited access to local financing, and corruption are all conditions that can discourage diaspora entrepreneurs from pursuing economic activities in their given country of origin (Migration Policy Institute: 2011).
Written by: Hamza El Fasiki
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