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Barriers to immigrant entrepreneurship: A causal relationship analysis of the Asian immigrant entrepreneurs in Germany employing the DEMATEL approach

Author

Listed:
  • Gul Shah Sabary

    (Tomas Bata University in Zlin, Czechia)

  • Aleksandr Kljuènikov

    (Pan-European University Prague, Czechia)

Abstract

Research background: Entrepreneurship and migration are top priorities on many national and international agendas. As a result, entrepreneurship is one of the most popular strategies immigrants use to avoid unemployment in a host country. However, studies lack to discuss causal relationships among key barriers to immigrant entrepreneurs. Purpose of the article: This study attempts to fill the knowledge gap and investigate the causal relationship between the primary obstacles faced by Asian immigrant entrepreneurs in Germany. Methods: A predesigned questionnaire was used in face-to-face interviews with Asian business owners in Germany for the study, and the Decision-Making Trial and Evaluation Laboratory (DEMATEL) method of data analysis was used. Findings & value added: The findings reveal that lack of sufficient financial resources to establish a business, high market competition, and a lack of knowledge of the local language of the host country are the most significant barriers, among others, which may severely hamper Asian immigrant business performance and have a considerable impact on their entrepreneurial decision. At the same time, lack of professional knowledge & skills, problems with rules & regulations, and cultural differences are among the least essential obstacles for Asian immigrant entrepreneurs. The findings show that unfamiliarity with the local language, problems with rules and regulations, cultural differences, and lack of international business experience are associated with the causer category. However, lack of enough capital to establish a venture, lack of professional knowledge and skills, difficulty in access to financial resources, and high market competition relate to the receiver category. This research generates value for policymakers, particularly those participating in migration studies. One of the study's novelties is using the DEMATEL framework for decision-making on barriers to immigrant entrepreneurship in the European context.

Suggested Citation

  • Gul Shah Sabary & Aleksandr Kljuènikov, 2023. "Barriers to immigrant entrepreneurship: A causal relationship analysis of the Asian immigrant entrepreneurs in Germany employing the DEMATEL approach," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 18(2), pages 491-522, June.
    • Handle: RePEc:pes:ierequ:v:18:y:2023:i:2:p:491-522
    DOI: 10.24136/eq.2023.015
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    References listed on IDEAS

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    More about this item

    Keywords

    immigrant entrepreneurship; causal relationship; immigrant barriers; DEMATEL method;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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