Challenges in the Era of Globalization - iaabd

Abstract
Challenges in the Era of Globalization
Edited by Emmanuel Obuah
Diaspora Entrepreneurship: A Pilot Study of British-African Entrepreneurs
Sanya Ojo sanyaojo@hotmial.com
University of East London, UK.
This paper examines the extent to which ‘hydra phenomenon’ and the ‘paradox of embeddedness’ influence the
entrepreneurial activities of British-Africans through a case-study ethnography approach. Two Nigerian Diaspora
entrepreneurs were interviewed using a collaborative narrative method to established knowledge of their business
strategies and tactics. The study shows that the process of embeddedness is not adequately negotiated by the
entrepreneurs; the transition to the ‘next stage’ is proven daunting to the entrepreneurs as shown by failed attempts
at ‘expansion’; the entrepreneurs struggled to cope with the various complexities that attend changing UK business
environment. Other emergent issues are also revealed.
Introduction
Diaspora communities have been portrayed to be scattered from an original centre to more than one
peripheral places and still maintaining links, memories, and images of their original homeland (Manger &
Assal, 2006: 12-13). They may or may not be fully integrated into their host countries and mostly harbor
the desire to return to their homelands when the time is right (Skinner, 1982: 17-45). Ionescu (2007: 8)
defines Diasporas as: “members of ethnic and national communities, who have left, but maintain links
with their homelands”. While seen as communities, diasporas are transnational in nature rather than being
sheer ethnic or immigrant minority groups located in a particular country as they embody means of
envisaging community, citizenship, and identity as ‘simultaneously here and elsewhere’ (Clifford, 1992:
3).
Diaspora entrepreneurs are valuable in facilitating some trade links with countries of origin and residence
directly by catering to the demands for goods & services (such as food or music from their home
countries). They may possess access and knowledge of markets or industries in the home country, which
can generate new business links (Ghosh, 2005). Trade links can also develop through opening of new
businesses in home or host countries through return/circular migration (Portes et al., 2002). According to
Kitching et al. (2009), Diaspora network structures play important roles for business development by
providing resources and opportunities to ethnic ventures if they are effectively exploited. Essentially,
Diaspora-based network under specific criteria allows access to resources & markets, and assist greater
levels of competitiveness. But it can also become an albatross, in certain conditions, when it restricts
resources and markets thereby limiting business competitiveness.
The explosion of British-African entrepreneurial Diaspora in Britain can be located broadly at the
intersection of micro, meso, & mega structures, and the mechanisms of migratory processes. Drawing
from extant literature, this paper interrogates and teases out how the concepts of “hydra phenomenon” and
“paradox of embeddedness” evolve and are negotiated by British-African entrepreneurs. It explores how
these communities, as strategic actors, are involved in processes of linking two different business
locations; and how they constitute a significant albatross in entrepreneurial activities.
Conceptual Framework
Diaspora entrepreneurship can be explored by the ‘middleman minorities’ (Bonacich, 1973; Morokvasic,
1993; Turner & Bonacich, 1980); the culturalist (Masurel et al., 2002; Fregetto, 2004; Borjas, 1993) and
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