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International Business Economics Immigrant Entreprene

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International Business Economics Immigrant Entreprene Aalborg University Department of Business and Management Field of study: International Business Economics Immigrant Entrepreneurship in Denmark- Motivations and challenges: case study of Nepalese Entrepreneurs. Author: Sudhir Biraji Study Number: 20171207 Supervisor: Arnim Decker Date of Project submission: 05/06/2019 Period of project: 4th semester (Master’s Thesis) Number of words: 20347 Number of pages: 65 1 Abstract: This study investigates the Motivation and challenges of the Nepalese immigrant entrepreneurs in Copenhagen. For the purpose of this research, 5 entrepreneurs were interviewed in Copenhagen. The finding of the research shows that the factors that motivates Nepalese immigrant to pursue entrepreneurship are Independency and autonomy, to increase their income, ego satisfaction, language barrier and social motivation for community. The finding also shows that Nepalese who came in a student visa to Denmark supported their education working in jobs related with cooking and developed the knowledge and skills of cooking which later become another motivating factor to start their own restaurant business. peer pressure, and self-esteem/ not losing face were also the motivating factors for the Nepalese entrepreneur. The finding also shows that Nepalese entrepreneur faces the challenges to access the capital required to begin their business along with attracting the local customer due to lack of social Network. The entrepreneurs poor command over the Danish language appears to be an obstacle to handle the relationship with customer along with acquiring the information. Competition was another challenge which was with the non-ethnic entrepreneurs rather than their own co- ethnic entrepreneurs. The Nepalese entrepreneurs do not employ their family member in their business and thus faces the problem of recruiting labour also. Recruiting labour was challenging because the entrepreneurs tried to hire workforce from same ethnic community so that the work can be done with lower wages inorder to keep the price of food lower and maximise their profits. However, the major challenge for the Nepalese immigrant entrepreneur was to raise the flow of local Danish customer. 2 Acknowledgement: This thesis paper is prepared as a part of 4th semester for the programme MSC in international Business Economics at Aalborg University. Firstly, I would like to thank my supervisor Arnim Decker for guiding and supervising my thesis. I would like to express my gratitude towards my supervisor who guided me with his valuable knowledge and suggestion to finish my thesis. I would also like to thank all the participants who were part of interview during my thesis. Thanks to all the participant for giving their time for the interviews which helps me to collect the data and prepared this thesis paper. I would also like to thank all the professors who share their knowledge during the two years programme and I would also like to thank to the administrations who keeps me updated with the information regarding programmes. Lastly, I would like to thank my parents for believing in me and supporting my education. 3 Table of Contents CHAPTER 1 .............................................................................................................................................. 7 1.1 INTRODUCTION: ............................................................................................................................ 7 CHAPTER 2 .............................................................................................................................................. 9 2.1 Problem Formulation: ................................................................................................................... 9 2.2 Structure of the thesis: ............................................................................................................... 10 CHAPTER 3 ............................................................................................................................................ 11 3. Literature Review: ......................................................................................................................... 11 3.1 Entrepreneur and Entrepreneurship: ......................................................................................... 11 3.2 Immigrant Entrepreneurship: ..................................................................................................... 14 3.3 Immigrant Entrepreneurship Theories: ...................................................................................... 17 3.3.1 Ethnic enclave theory: ......................................................................................................... 17 3.3.2 Labour Disadvantage theory: ............................................................................................... 18 3.3.3 Cultural Theory: ................................................................................................................... 19 3.4 challenges for immigrant entrepreneurship: .............................................................................. 20 3.5 Entrepreneurial Motivation: ....................................................................................................... 23 CHAPTER 4: ........................................................................................................................................... 28 4. Methodology ................................................................................................................................. 28 4.1 Research Design and research approach: ................................................................................... 28 4.2 Research Method: ....................................................................................................................... 30 4.2.1Qualitative research method: ............................................................................................... 30 4.2.2 Quantitative research method: ............................................................................................ 31 4.3 Data collection: ........................................................................................................................... 32 4.3.1 Primary data: ........................................................................................................................ 32 4.3.2 Secondary data: ................................................................................................................... 34 4.4 Data analysis: .............................................................................................................................. 34 4.5 Research quality: ....................................................................................................................... 35 Chapter 5:.............................................................................................................................................. 37 5. Analysis and Discussion: ................................................................................................................ 37 4 5.1 Immigrants Background (profile of interviewee participants): .................................................. 37 5.1.1 why did the Nepalese immigrants come to Denmark? ....................................................... 40 5.2 Information regarding the business: business type, size of business, costs of business........ 41 5.2.1 Business type: ...................................................................................................................... 41 5.2.2 Cost of starting/acquiring business: ..................................................................................... 42 5.2.3 Size of business or number of employees: ........................................................................... 43 5.3 Immigrants Entrepreneur’s motivation: ..................................................................................... 45 5.3.1 Independency and autonomy: ............................................................................................. 45 5.3.2 Income security & Financial success: ................................................................................... 46 5.3.3 Language barrier: ................................................................................................................. 47 5.3.4 Ego satisfaction: ................................................................................................................... 48 5.3.5 Community and social motivation: ...................................................................................... 48 5.3.6 Development of Unique knowledge and skills: ................................................................... 49 5.3.7 Peer pressure: ...................................................................................................................... 49 5.3.8 Self-esteem and not losing face: .......................................................................................... 50 5.4 Challenges or problems Entrepreneur are facing: ...................................................................... 51 5.4.1 Access to capital: .................................................................................................................. 51 5.4.2 Attracting customer/ lack of social network: ....................................................................... 51 5.4.3 Danish language: .................................................................................................................
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