Refugee resettlement and socio-economic participation through entrepreneurship: The case of New Zealand

Abstract

Entrepreneurship is often viewed as a feasible pathway for refugee resettlement. It is regarded as a means for refugees to find employment and participate in socio-economic activities. Previous studies have suggested refugee entrepreneurship as a pathway for refugee integration. However, it is not enough to assert that entrepreneurship is a pathway for refugees to integrate and resettle in a host community; we need to understand how entrepreneurship contributes to their resettlement. The current knowledge needs to be expanded within the context of resettlement by exploring why refugees start businesses, how refugee entrepreneurship aids resettlement, the types of businesses refugees engage in, and the reasons behind these choices. How does refugee entrepreneurship influence resettlement? Focusing on spatiality, this study addresses the gap caused by the lack of a context-specific study examining refugee entrepreneurship and resettlement in a host country.

A synthesised conceptual framework that provides a structured overview of key ideas, concepts, theories, and relationships drawn from existing research and literature on (refugee) entrepreneurship and resettlement has been neglected. Exploring the phenomenon of refugee entrepreneurship and its connection to resettlement necessitates the development of a synthesised conceptual framework. In conducting this study, the framework is based on a synthesis of: (1) the mechanisms (a broad theoretical discussion) driving the motivation of (refugee) entrepreneurs; (2) social capital theory; and (3) mixed embeddedness theory.

Focusing on New Zealand as a refugee-receiving country, the developed novel context-aware conceptual framework is applied to improve understanding of the linkage between refugee entrepreneurship and resettlement. How the “enabling” factors of refugee entrepreneurship transform misfortune into positive outcomes for refugees is revealed. The term “enabling” describes how refugees overcome difficulties and turn challenges into elements that drive positive outcomes for them.

This study provides answers to why refugees engage in business activities. This improves our understanding of the motives of refugee entrepreneurs beyond the traditional push and pull dichotomy of necessity and opportunity recognition. Although motivated to start businesses, refugees encounter significant barriers to entrepreneurship and need to actively participate in socio-economic activities to support their resettlement through entrepreneurship. Refugee resettlement through entrepreneurship is a transformative process shaped by their experiences from their home country, culture, transition, and pre-entrepreneurial activities in the host country.

Applying the interpretive approach, data were collected through semi-structured interviews with 21 refugee entrepreneurs, using a semi-structured interview guide. Qualitative methods that uniquely enable the explanation of the participants’ agentic lived experiences, capturing individuals’ meanings and interpretations of their behaviours, events, and contexts, were employed. Abductive reasoning was used to identify themes, codes, and categories. Raw data were organised through the first-order coding or open coding process, where sets of data were closely reviewed and integrated with other data to develop broader themes and theoretical dimensions. NVivo software was utilised to support and enhance the rigour of data analysis.

This study finds that refugees must transition from informal to formal entrepreneurs to resettle through entrepreneurship. This change requires support from drivers of mixed embeddedness (DME) and government intervention through policy change, especially for refugees who arrive as adults.