(Social) Entrepreneurship by Refugees

Abstract

In a sample of 36 nascent refugee entrepreneurs, we examine the influences of personal unmet needs and prior knowledge on (social) opportunity recognition processes. We also examine how these entrepreneurs utilize their networks and the types of barriers they experience in doing so. We answer the following research questions: To what extent do personal experiences and prior knowledge influence refugees in becoming (social) entrepreneurs in a host country, 2) what barriers can we detect, and 3) what are their networks’ roles in this? We use a case study design with a mixed-method approach, combining in-depth interviews (n = 7) and descriptive survey data (n = 36). We collected data from two entrepreneurial training programs in the Netherlands. We find that prior knowledge, personal unmet needs, and specific prosocial motivations influence how a (social) entrepreneurial opportunity is recognized and perceived. In contrast to what was expected, prior knowledge hinders these refugees in starting up their businesses. We also find substantial barriers that hinder refugees from acting on their business ideas, such as language barriers, lack of knowledge of the cultural, legal, and political context as well as a lack of knowledge about the institutional system. Refugees often have little knowledge about their network, which they should utilize in establishing their business. We find that many refugees feel pushed into entrepreneurship and may be considered as necessity-driven entrepreneurs. When this happens, this influences the growth potential and success of these (nascent) ventures over time. Our research contributes to the literature on refugee entrepreneurship by examining the drivers and barriers that entrepreneurial refugees experience. Stimulating refugee entrepreneurship will increase integration, and can positively affect a host country’s economy. It also increases refugee self-reliance. Our research also makes a practical contribution by providing a better understanding of how to empower and support (nascent) refugee entrepreneurs in integrating into their host country.