Accelerating and incubating refugee entrepreneurship: The role of social enterprises in supporting marginalised entrepreneurs

Research question and aims Refugee entrepreneurship is increasingly seen as an effective response to some challenges of economic and social integration in the wake of the global refugee crisis. In response to the ongoing... [ view full abstract ]

Research question and aims

Refugee entrepreneurship is increasingly seen as an effective response to some challenges of economic and social integration in the wake of the global refugee crisis. In response to the ongoing global refugee crisis, some social enterprises are building business incubators to support refugee entrepreneurs in establishing a new life. This paper applies the theoretical lens of effectuation to understand the nature of refugee entrepreneurship processes, and how social enterprises can best support refugee entrepreneurs.

Few studies have considered the role of social enterprises in supporting refugees (Teasdale 2010, Barraket 2013), with these studies focused on refugee employment rather than entrepreneurship. Similarly, the research on refugee entrepreneurship is underdeveloped (Wauters and Lambrecht 2008), despite the significant literature on immigrant entrepreneurship (Aliaga-Isla and Rialp 2013). The role of incubators in catalysing entrepreneurial activity has received increasing attention in academic literature, though this research has ignored the role of social enterprises as incubators and the potential for refugee enterprises to be the focus of incubation processes (Ebbers 2014). By exploring the interplay between social entrepreneurship, refugee entrepreneurship and entrepreneurship incubators, the paper aims to advance these three conversations through empirical insights and increase our understanding of how social enterprises affect marginalised groups.

Theoretical framework

Effectuation challenges the traditional rationalist model of entrepreneurial decision-making, arguing that rather than pursuing a predetermined goal, entrepreneurs project towards generalised aspirations aligned with their given set of means (Sarasvathy 2001). This paper adopts the effectual lens to empirically understand processes of refugee entrepreneurship and how incubator programs run by social enterprises can support these entrepreneurs. The five key elements of effectual entrepreneurship mapped against the core themes in the immigrant entrepreneurship and entrepreneurship incubation literatures provide the theoretical frame for this paper: bird-in-hand (human capital), crazy quilt (social capital) affordable loss (risk/loss aversion), lemonade (experimentation/failure) and pilot-in-the-plane (motivations/empowerment) (Sarasvathy et al. 2014).

Methodological approach

The methodology adopted in this paper is two-fold. The first part involves an in-depth case study of a social enterprise that runs an incubation program for refugee entrepreneurs. In-depth interviews with 20 refugees before and after participation in the program shed light on the processes of refugee entrepreneurship. The second part involves a multiple-case study of 32 socially entrepreneurial incubators from 16 countries. This international comparative study examines how social enterprises are supporting refugee entrepreneurs and structuring their incubation programs. The incubators are examined through a combination of documentary analysis and in-depth interviews with program managers.

Conclusion and relevance

The analysis provides a deeper understanding of refugee entrepreneurship processes and the nature of incubation programs run by social enterprises.

Bird-in-hand (human capital) – refugee entrepreneurs and incubator programs focus on differentiation through cultural diversity. Knowledge and skills from the home country are leveraged as opportunities rather than treated as barriers.

Crazy quilt (social capital) - refugee entrepreneurs and incubator programs place a high priority on developing new networks through establishing relationships with mentors, potential investors, potential customers, and ensuring embeddednesss within local communities.

Affordable loss (risk/loss aversion) - refugee entrepreneurs have a unique perspective on affordable loss in light of their journeys to arrive at the host country and limited opportunities for meaningful work.

Lemonade (experimentation/failure) - incubator programs are structured to create a space for experimentation and failure, rather than requiring strict business plans. This allows refugee entrepreneurs to exploit unanticipated events and learn from failure as they develop their enterprises.

Pilot-in-the-plane (motivations/empowerment) – a desire to actively shape their own future is the core factor motivating refugee entrepreneurs. Social enterprises running incubator programs are heavily involved in activism around refugee issues with a similar desire to reshape opportunities for refugees.

These findings provide insights on the nature of refugee entrepreneurship and how it can be supported through social enterprises. Further, the international nature of this study will assist academics and practitioners seeking to engage with and support refugee entrepreneurs in diverse contexts.

References

Aliaga-Isla, Rocío, and Alex Rialp. 2013. "Systematic review of immigrant entrepreneurship literature: previous findings and ways forward." Entrepreneurship & Regional Development 25(9/10):819-844.

Barraket, Jo. 2013. "Fostering wellbeing of immigrants and refugees? Evaluating the outcomes of work-integration-social-enterprise."  Social Enterprise: Accountability and Evaluation around the World.

Ebbers, Joris J. 2014. "Networking Behavior and Contracting Relationships Among Entrepreneurs in Business Incubators."  Entrepreneurship Theory and Practice 38(5):1159-1181.

Sarasvathy, Saras D. 2001. "Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency."  Academy of Management Review 26(2):243-263.

Sarasvathy, Saras, K. Kumar, Jeffrey G. York, and Suresh Bhagavatula. 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities."  Entrepreneurship Theory and Practice 38(1):71-93.

Teasdale, Simon. 2010. "How Can Social Enterprise Address Disadvantage? Evidence from an Inner City Community."  Journal of Nonprofit & Public Sector Marketing 22(2):89-107.

Wauters, Bram, and Johan Lambrecht. 2008. "Barriers to Refugee Entrepreneurship in Belgium"  Journal of Ethnic and Migration Studies 34(6):895-915.