Returnee entrepreneurial entry decisions among forced and voluntary returnees in Ethiopia: A comparative study

Abstract

ABSTRACT Returnee entrepreneurship has become an important topic of interest due both to the increasing number of return migrants and the particular nature of their entrepreneurial activities. In some cases, such as in Taiwan, China, and Israel, voluntary returnees have made a significant impact on their home country’s economic development. However, some expatriates are forced to return due to rapid changes in the political and economic situations of their host countries. We compare and examine these two different cohorts in Ethiopia to understand what attributes are transportable and facilitate entrepreneurship, as well as barriers for the two different groups. Scholarly understanding of what drives returnee entrepreneurial entry decisions remains limited, even more so regarding sub-Sahara Africa. Using the mixed embeddedness perspective, this paper aims to unveil the multi-level drivers of returnee entrepreneurial entry decisions by comparing forced and voluntary returnees to Ethiopia. Based on in-depth interviews with 25 returnees, abductively, the findings indicate the interactive influence of personal and interpersonal factors, simultaneous engagement, and opportunity promise on returnee entrepreneurial entry decisions. Specifically, for the voluntary returnees, childhood aspirations, altruistic desire, simultaneous engagement, and nostalgia, coupled with migration capital and opportunity promise influence their business entry decisions. For the forced returnees, lack of options, regrets about migration, preconceptions, tacit capital, and government support drive their entry decisions. We discuss how these factors are contingent on migrants’ pre-, post-, and during-migration conditions in facilitating returnee entrepreneurship. We also illuminate the distinctive differences between forced and voluntary returnees. Implications for theory and practice are indicated.