Economic Contributions and Challenges of Immigrant Entrepreneurs
Discuss about the Antecedents of Ethnic Minority Entrepreneurship.
The economic contribution of immigrant entrepreneurship is immense and it revolves around the concept of developing and developed societies nowadays. The entrepreneurship concept is the actual process of creating value and utilizing the resources properly for the exploitation of entrepreneurship opportunities. The immigrant entrepreneurship means the processes that take place when people from outside come in the parent country to start and expand business properly. The topic will illustrate about the weaknesses and the areas of improvement in New Zealand. It is seen that the immigrant entrepreneurship has created value as well as improved the social and economic wellbeing to ensure effective business functioning. It is to be discussed about the economic contributions and challenges of immigrant entrepreneurs to the host country (Morris et al., 2013).
There are more than 90 percent small and medium sized enterprises and 50 percent of the jobs are provided to the employee with the help of that. Based on the population size, New Zealand is focused on managing the export activities where the products and services are sold to the foreign countries. With the occurrence of immigrants travelling to New Zealand from all over the world, it will be effective to create social and economic value through entrepreneurship and at the same time, facilitate the creation of value, wealth and exploitation of resources to utilize the scopes and opportunities (Cain & Spoonley, 2013).
Auckland is one of the largest cities in New Zealand that holds 30 percent of the entire population of nearly 1,415,550. Nearly 15000 African immigrants reside in Auckland and they have managed entrepreneurship to improve their lives and at the same time contribute well to the growth in economy of the country (Engelen et al., 2014). Few of the factors that may benefit the immigrant entrepreneurs include passion to go beyond the monetary value and benefits, understanding the weaknesses in New Zealand and identifying the market factors along with personality traits that are needed to become successful in business. The immigrants are perceived as skilful, knowledgeable and entrepreneurial for the management of growth in economy and innovation (Krueger, Liñán & Nabi, 2013). In spite of the level of motivation that the immigrants possess, their contribution has brought profitable outcomes for many businesses in the developing and developed countries, furthermore ensured creating special visas and entry requirements to attract more immigrant entrepreneurs (Turró, Urbano & Peris-Ortiz, 2014). This would propel the economy in New Zealand as well as secure minimum capital investments through the development of a clear business plan and ensuring that business frauds do not occur and employment opportunities are created for the people in New Zealand.
Immigrant Entrepreneurship in New Zealand
Being a small country with sources of income mainly dependent upon the small and medium sized enterprises, the immigrant entrepreneurship may help in contributing to the technology and engineering sector as well as provide employment opportunities to both the local and immigrant workers (Zhou, Friedrichs & Sundin, 2014). With a huge amount of more than $100 million in investments, Turkey and other neighboring areas joined the entrepreneurship and made sure that the immigrants can start businesses. The financial technologies brought bigger investments and it favoured use of online technologies for the businesses. The cultural perspective is not as good expected at Turkey, still opportunities for female individuals are lower. Many of the immigrants have started living in Turkey and New Zealand for a considerably long amount of time. The diversified culture and ethical landscape influenced the immigration entrepreneurship and created positive mindsets among the religious composition of its population. The diversity and culture of the population as well as the immigrants living there clearly has been reflected in the features of workforce and the labor market (Krueger, Liñán & Nabi, 2013). The economy of the country is quite good when characterized by financial services, stock market and trade activities in New Zealand. Another example could be Indian immigration in United Kingdom, which has continued to strengthen and those of Indian ethnicity is more than 1.05 million. Due to good trade relations between these two countries, proper support is given to the immigrants, which has also facilitated the values and ethics of the culture present there (Masárová & Han?ovská, 2016).
The ethnic minorities could experience higher rate of employment and even own significant portions of a business in most of the industrialized countries. There is heterogeneity in the economic performances of the ethnic groups and thus policies and procedures are implemented to ensure that the success in terms of economic growth and self-employment is achieved. With the globalization of world economy, it would be much more convenient for the ethnic minorities to manage flexibility in business and develop global networks through integration of communication technologies and managing global business and trade relations successfully. The ethnic minorities in New Zealand include Black, Asian, Pacific Islander, American Indian and even Hispanic. They belong to some other area and visit the foreign country to start their own business after their arrival in New Zealand. The ethnic minorities’ entrepreneurship can consider the micro and macro environmental factors at first and then assess the cultural preferences, opportunities and economic advantages that may be derived (Engelen et al., 2014). It is a fact that ethnic minorities entrepreneurship have been economically disadvantaged, due to which, they lacked essential resources to start a new business and even faced problems related to employment opportunities. An ethnic enclave consisting of the local people and immigrants in New Zealand can create partnership working and entrepreneurial scopes to meet the needs of the local people and gain critical support in the form of money or other resources (Smans, Freeman & Thomas, 2014). It would also assist in setting up a new business through proper management of information networks, capital and labor. All these would bring success for immigrant entrepreneurship through proper utilization of resources and leveraging the local- co-ethnic community to the fullest. These are essential aspects for survival in business and for generating new ideas and concepts to create value by contributing to the growth in economy as well (Chung & Tung, 2013).
Weaknesses and Areas of Improvement in New Zealand
The immigrants who come to Auckland, New Zealand have faced various challenges such as lack of ability to secure finance, high tax rate, small population, high competition in the market and increased costs of managing business operations and processes. It is evident that the immigrants in New Zealand have faced challenges who are small business owners in their home country and thus it becomes difficult sometimes for them to manage business growth and long-term profitability. New Zealand is a place with a population of over 4.5 million and thus the domestic market is relatively small when compared with other countries. The main source of income is the presence of small and medium sized business enterprises managed by the entrepreneurs (Masárová & Han?ovská, 2016). There is lack of employment opportunities in New Zealand, which has created a number of problems for the new businesses to be managed properly while the growth in economy has been hindered. New capital is not added in the economy, which has resulted in higher level of unemployment, lesser value and wealth creation (Nakhaie & Kazemipur, 2013).
They even lack the host country’s work experiences, which create difficulty for them to cope with the labor market and gain opportunity to start a new business. One of the biggest challenges faced by the immigrants while starting business is the lack of proper amount of finance. There was lack of investments by the shareholders because many of the people in New Zealand were skeptical of the abilities and skills of immigrants to make funds available for the immigrant entrepreneurship (Lietuvnike et al., 2018). For example, in certain cases the banks were biased against the help and support provided to the immigrants, which further created complexities while approving the loans. It is also a major difficulty for the immigrants to secure the loans from the banks, because of which, they need to mobilize the funds from their home countries to add the capital into the economy of the country (Webb, Ireland & Ketchen, 2014). The change in policies and practices in New Zealand regarding the immigrant entrepreneurship can be another area of weakness that can prevent them to start business successfully (Hagen, Denicolai & Zucchella, 2014).
It is a fact that immigrant entrepreneurship can contribute to the creation of both social and economic value and ensure growth in economy of the country. The trade relations would be facilitated, which could even promote better trade activities between two countries as well as facilitate the revenue generation from the foreign countries (Webb et al., 2013). The immigrants are paying the right taxes, collected goods, and service tax from the customers for the Government to ensure that the immigrant entrepreneurship can be managed properly. This will help the economy of the country to grow and develop as well as overcome the social problems faced. With the prevention of these issues, it will be more convenient for managing the import and export of products and services along with proper support and help provided by the New Zealand Government to start a new business there (Vries, Hamilton & Voges, 2015).
Another essential contribution to the social and economic value could be the revitalizing or re-establishing the dying businesses. It would be possible by enabling fresh capital and created more scopes for the local and immigrants to work at the new business and enhance the labor productivity. This should result in increased production level and creation of wealth and value (KritiKoS, 2014). To overcome the issues and challenges associated with the access to marketing, sales, finance, management and high tax rates (Verbeke et al., 2014). It should not only provide new capital to the dying businesses, but would also create a diversified workplace while managing entrepreneurship. There would be trading across borders and the cultural differences should be overcome as well. The increase in employment scopes and opportunities might result in forming a productive workforce that should contribute to the social and economic value creation effectively as well (Chung & Tung, 2013).
- It is recommended for them to work with Government agency partners and provide information regarding the governance structure that can support targeting the segments and delivering services accurately.
- It is recommended to implement the evaluation and monitoring frameworks for the Government settlement activities including the services purchased by the immigrants.
- The retention rates of the skilled immigrants during the last two to five years have increased and many often have gained full time residency. It is recommended that the local companies provide opportunities to the skilled individuals from outside so that they can work and improve their knowledge to start their own entrepreneurship.
- The Government agencies should provide proper monetary support for making their lives better and help them raising a business.
- With the technological achievements now days, it is important for the immigrant entrepreneurs to establish an electronic World Trade Platform for simplifying the rules and regulations and overcome issues related to tariffs for encouraging global e-commerce.
- Higher the success of immigrant entrepreneurship, the higher is expected to be the trade relations between the two countries, thus creates more scopes for economic growth too.
The report was prepared to discuss about the cultural perspective on entrepreneurship considering the impact of immigrant entrepreneurship on the social and economic value creation in New Zealand. The immigrant entrepreneurship could allow for resolving the issues faced in various areas of New Zealand. It should create more jobs for the individuals as well as enhance the workforce productivity along with long-term profit achieved by the organizations. The African natives visited New Zealand to start businesses, which might be difficult for them sometimes due to cultural differences, language differences and discrimination considered as major challenges faced. It could be overcome by gaining proper support from the Government and even work in partnership with other SMEs to ensure that more employment scopes could be created and increased labor productivity, which would automatically improve the growth in economy of the country.
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