Positioning Diasporans as Change Agents in the SME Sector

Abstract

Within an entrepreneurial ecosystem, diasporans are transnational entrepreneurs that bring new ideas, beliefs, norms and behaviors acquired in their country of residence to engage differently in business activities in their home countries. The state of an institutional environment influences the extent of entrepreneurial opportunities and threats perceived about doing business in that country of origin. It is useful to understand the extent to which being involved in entrepreneurial activities in a country of origin is perceived as an asset or liability by transnational individuals, particularly as governments seek effective ways to support SMEs, especially when existing challenges are further compounded by crises such as the Covid-19 pandemic. Therefore, the paper seeks to understand whether transnational entrepreneurs are likely to develop new ways of reframing these issues. The paper draws insights from the perspectives of diasporans about their resources and the country of origin’s business environment for business investments. It concludes that relative to entrepreneurial ecosystem attributes and diasporans resources, diasporans do not approach the opportunities and threats of entrepreneurial activities differently.