ENTREPRENEURSHIP IN CONFLICT ZONES (LIBYA AS A CASE STUDY) BY BADREDDIN A ABDUGADER AKREIM Doctorate of Business Administration 2020 DISSERTATION Submitted to the International University of Leadership in Partial Fulfillment, of the Requirements for the Degree of Doctorate of Business Administration December, 2020 1 Copyright © 2020 Abstract This study emphases on the Entrepreneurship opportunities in Libya and discusses in depth its related features. The research explores the concept of entrepreneurship, its evolution, forms and theories. A special case of entrepreneurship has been carefully taken where the entrepreneurship opportunities in conflict zones have been studied and the case of Libya has been chosen. Where, an investigation has been made for a potential entrepreneurship opportunity for anyone who is interested in taking any opportunity available in Libya whether Libyan citizen or a foreigner. The research helps in drawing conclusion whether the opportunities available in Libya are indeed affordable for a potential entrepreneur or not? For this purpose, a special questionnaire has been established to collect the data from a sample population of 319 potential entrepreneurs who have already started business in Libya or willing to start in near future. Results of the study provides significant output and highlight that doing business in Libya requires lots of experience as well as some motivation behind given the concentration of security risk. Data shows that on average each potential candidate who wants to do business in Libya has on average five family members to take care of. This highlights the drastic situation in Libya which may signifies the high unemployment levels in Libya and a person may be willing to start his/her own business to support the family rather than waiting to find an employment opportunity. Further, the comparison of two eras i.e. Era of Gaddaffi and time period after the Gaddaffi tenure, presents a harsh reality where according to the sample population, the opportunities in earlier time with regards to FDI, Infrastructure, Legal Assistance, Employment opportunities, and business environment were rated horrible to Unsatisfactory even during the Gaddaffi era which in history is considered as the golden time period for Libya with regards to development. Understandably, the situation becomes more severe when comparison is made to the era after Gaddaffi era where all the previous variables turned more severe compared to the earlier time. Findings from the environmental factors also provide highly negative results giving an overall impression that entrepreneurship is not possible in general in conflict zones especially Libya unless some structural changes are made. 2 Copyright © 2020 Dissertation Committee This dissertation has been examined and approved in partial fulfillment of the requirements for the degree of Doctorate of Business Administration by: Badreddin Akreim Dissertation Director, Faculty Name, Title (includes discipline) Faculty Name, Title (includes discipline) _______________________________ Faculty Name, Title (include discipline) _______________________________ Faculty Name, Title (includes discipline) _______________________________ Faculty Name, Title (includes discipline) _______________________________ On [Date of Defense] 3 Copyright © 2020 Acknowledgements and Dedication First of all, I would like to thank my supervisor Dr. Jalal Mouti whose expertise was invaluable in formulating the research questions and methodology, his insightful feedback pushed me to sharpen my thinking and brought my work to a higher level, also he was my teacher and supervisor during the MBA, in 2015 and 2016. I am grateful as well to my school, IUL and to my professors for the quality of the training that I received during these six years. I would like thus to express my special thanks to all professors for providing me with both theoretical and practical knowledge and trained me and polished my abilities in the field of business. Excuse me here to mention Dr. Emil and Dr. Achour for their following of my program of doctorate. My thanks must go also to Moroccan king, authorities and people for their hospitality. Last but not least to my mother and my father’s spirit who taught me the value of hard work, my wife for her patience with me and children for seven years in a foreign country, and the government of Libya, more particularly Dr. Hamad Bourouiq and my boss in Libya Dr. Abdulaziz Issa for their encouraging, and also to everyone who were always there by my side to guide me and gave me the courage that I needed to do the best. 4 Copyright © 2020 Table of Contents Abstract ............................................................................................................................................ 2 Dissertation Committee ................................................................................................................... 3 Acknowledgements and Dedication ................................................................................................ 4 List of Tables & Illustrations ........................................................................................................... 8 List of Abbreviations ....................................................................................................................... 9 I. INTRODUCTION .................................................................................................................. 10 1.1 Background of the Study ..................................................................................................... 12 1.2 Significance of the Study ..................................................................................................... 13 1.3 Problem Statement ............................................................................................................... 13 1.4 Ethical Issues ....................................................................................................................... 14 1.5 Limitation of the Study ........................................................................................................ 14 1.6 Organization of the study ..................................................................................................... 15 II. LITERATURE REVIEW .................................................................................................. 16 2.1 Introduction ................................................................................................................... 16 2.1.1 History of Entrepreneurship .......................................................................................... 17 2.1.2 Entrepreneur and Entrepreneurship ............................................................................... 20 2.1.2.1 Schultz Argument ...................................................................................................... 22 2.1.2.2 Recent Developments ................................................................................................ 25 2.1.2.3 Entrepreneurial Characteristics ................................................................................. 30 2.1.3 Entrepreneurship as a Discipline ................................................................................... 39 2.1.4 The Entrepreneur as a Personality ................................................................................. 40 2.2 Small Businesses: Introduction ..................................................................................... 41 2.2.1 Defining the Small Business ......................................................................................... 41 2.2.2 Qualitative Definitions .................................................................................................. 41 2.2.3 Quantitative Definitions ................................................................................................ 43 2.2.4 The Role and Importance of Small Businesses in Economies ...................................... 45 2.3 Entrepreneurship in Libya ............................................................................................. 48 2.3.1 General Introduction ...................................................................................................... 48 2.3.2 History - Early Libya ..................................................................................................... 49 2.3.3 Modern Libya ................................................................................................................ 49 2.3.4 Geography ..................................................................................................................... 50 2.3.5 Opportunities Afforded during the Gaddafi Era ............................................................ 51 2.3.6 Present Situation ............................................................................................................ 53 5 Copyright © 2020 2.3.6.1 Law and order ............................................................................................................ 53 2.3.6.2 Political Environment ................................................................................................ 54 2.3.7 The Leadership Challenge ............................................................................................. 54 2.3.7.1 Current Political Scenario .......................................................................................... 56 2.3.7.2 Religion ....................................................................................................................