Ethnic entrepreneurial success factors: evidence from the United Arab Emirates

Abstract

This paper examines how personal, business, and environmental factors influence ethnic entrepreneurial success in the UAE, against the backdrop of the nation's concerted efforts to promote entrepreneurship and foreign investments in SMEs, as the means to attaining its goals of sustainable, long term economic diversification, expansion, and enhanced performance. The study adopts a mixed methods approach to investigate the key determinants of ethnic entrepreneurial success by utilizing primary quantitative data collected via a survey of 103 entrepreneurs. In addition, qualitative data is obtained from in-depth interviews of ten expatriate entrepreneurs. Whereas the quantitative results evidenced a significant impact of one personal and two business factors on ethnic entrepreneurial success in the UAE, with the environmental factors being insignificant, the qualitative results confirmed the importance of personal and business variables in achieving success, especially the role of support from ethnic groups. Further, interviewees' perceptions of the environmental factors' role were mixed, supporting the qualitative findings regarding the insignificance of these factors. Our findings are timely and beneficial for policymakers promoting ethnic entrepreneurship in the UAE and potential entrepreneurs intending to establish businesses within it. Furthermore, no previous studies have been found in the research literature regarding the factors influencing ethnic entrepreneurial success in the UAE, ranked fourth globally in the Global Entrepreneurship Index (GEI) 2020. Hence, this study's results merit policymakers' consideration regarding the adequacy and relevance of their efforts to promote startups and entrepreneurship.