ENTREPRENEURSHIP: AN AFRICAN CARIBBBEAN PERSPECTIVE by GREGORY JOHN ROBERTS A thesis submitted to The University of Birmingham for the degree of DOCTOR OF PHILOSOPHY Department of Theology and Religion College of Arts and Law The University of Birmingham February 2009 University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder. ABSTRACT This study set out to take a definitive look at African Caribbean entrepreneurship by delineating the broad spectrum of historical and contemporary theories of ethnic entrepreneurship. It also looked in particular on the phenomenon of African Caribbean entrepreneurship through the lens of Pentecostalism, which is the most popular religious expression of African Caribbean peoples in the UK. The extent to which the socio‐cultural and psycho‐ religious underpinnings of the African Caribbean person are amenable to entrepreneurial engagement was also subjected to analysis. This analysis focused on themes and perspectives, which are general to African Caribbean experience – individual, family and community. They were presented as age, gender or sex, education, family structure, motivation, and funding of entrepreneurial ventures. Also in connection with these were a number of factors, which operate at the nexus of African Caribbean Pentecostalism and entrepreneurship. These include historical antecedents, socioeconomic situations up to the 1950s, the ambiguity of Scriptures towards wealth as well as the impact of the psychology of time on the African Caribbean mind. All these provide a framework in which the existential and transcendental interact in the community of faith. DEDICATION This work is dedicated to my family, past present and future ­ GJ, Chyanne, Reanah and Calis. To the Glory of God. ACKNOWLEDGEMENTS I wish to acknowledge the support that has been given to me by my family and a small but strong group of friends. This paper is as much a product of their investment of time, faith and support over the years. My supervisor, Professor Markus Vinzent has given tremendous support over and beyond dictates of duty. TABLE OF CONTENTS CHAPTER 1 INTRODUCTION 1 1.1. Relevance and Application of Study 5 1.2. Purpose of Study 11 1.3. Things Encountered During Study 11 1.4. Overview of Study 13 CHAPTER 2 THEORIES OF ENTREPRENEURSHIP 20 1.1. Etymology of the Term ‘entrepreneur’ 24 2.0. Entrepreneurship in National Schools of Thought 26 2.2. British Classical School 35 2.3. Austrian School of Economics 44 2.4. American Institutionalist School 60 2.5. Some Thoughts on the Relationship between Background, Ethnicity and the Definitions of Entrepreneurship 63 2.6. Economics, Entrepreneurship and Theology: A case for the engagement of the African Caribbean Pentecostal Church in the UK 66 2.6.1. Economics and Theology: a path to entrepreneurship 66 2.6.2. Liberation/Life Theology model of African Caribbean Pentecostalism 69 2.6.3. Liberation Theology, Marxism and Entrepreneurship 70 2.6.4. UK Context of African Caribbean Pentecostal Theology and Economic Engagement – Critique of Intellectual Approaches 74 2.7. Entrepreneurship as Healing 80 CHAPTER 3 ETHNIC ENTREPRENEURSHIP THEORIES and RESEARCH OVERVIEW 82 3.1. Ethnic Entrepreneurship Studies and African Caribbean Entrepreneurship 83 3.2. Ethnic Entrepreneurship – Presentation of Theoretical Frameworks 93 3.2.1.1. Middleman Theory 96 3.2.1.1.1. Ethnic Entrepreneurship as a Response to Labour Market Disadvantage and Discrimination 97 3.2.1.1.2. Narrow choice of enterprise and vocation 101 3.2.1.1.3. Ethnic Solidarity and Cohesion 103 3.2.1.2. Ethnic Enclave Theory 105 3.2.1.3. Ethnic Market Niche 108 3.2.1.4. Collectivist Theory Error! Bookmark not defined.09 3.2.1.5. Discussion on the Ethnic Resource Bundle and its relevance to the African Caribbean Context 110 3.2. 2. Embeddedness in Ethnic Entrepreneurship 112 3.2.3. Mixed Embeddedness Error! Bookmark not defined. CHAPTER 4 SOCIAL ENTREPRENEURSHIP FROM THE AFRICAN CARIBBEAN PERSPECTIVE 138 4.1. A Discussion 138 4.2. Non- Commercial Legal Forms of Organizations in the UK 143 4.3. Social Entrepreneurship and the Struggle for Definition 146 4.4. Definition of Social Entrepreneurship and the UK Context 162 4.5. African Caribbean Pentecostalism and Social Entrepreneurship in the UK 167 CHAPTER 5 AFRICAN CARIBBEAN ENTREPRENEURSHIP – THEMES AND PERSPECTIVES 172 5.1. Age 173 5.2. Sex and Education 176 5.3. Entrepreneurship and the African Caribbean Family Structure 180 5.4. Motivation Among African Caribbean Entrepreneurs 199 5.4.1. Personality Traits and Characteristics 200 5.4.2. Circumstances of the Entrepreneur 204 5.5. Funding and Start-up Finance 209 5.5.1. Sources of Funding at Start-up 214 5.6. 'Pardna' System – a Jamaican Rotating Savings and Credit Association 216 CHAPTER 6 Entrepreneurship and the African Caribbean Pentecostal Church 223 6.1. A Discussion 223 6.2. African Caribbean Pentecostalism and Entrepreneurship 228 6.2.1. African Religious Retentions and Entrepreneurship – Myalism, Obeah and their Functions. 230 6.2.2. Entrepreneurship and Religion Among the Enslaved 239 6.2.3. European Christian influences on Jamaican Pentecostalism and Entrepreneurship 245 6.3. Jamaica and the USA – Advent of Pentecostalism 250 6.3.2. Jamaica and the coming of American Pentecostalism – Social and Economic Conditions 255 6.4. A Presentation of Select Themes in African Caribbean Pentecostalism and their Impact on Entrepreneurship and the Perception of Business among African Caribbean Pentecostals 255 6.4.1. Biblical ambiguity towards money 267 6.4.1.1. Psalms 268 6.4.1.2. Major and Minor Prophets 269 6.4.1.3. Wisdom Literature 271 6.4.1.4. The Virtuous Woman 272 6.4.1.5. The New Testament and Wealth 274 6.5. Antecedents in the Predecessors of African Caribbean Pentecostalism 276 6.6. The Theology and Homiletics of African Caribbean Pentecostal Preaching 280 6.6.1. Church vs. World Orientation 281 6.6.2. Other – Worldly Orientation Error! Bookmark not defined. 6.6.3. Eschatology 284 6.7. Concept of Time among African Caribbean Pentecostals 286 CHAPTER 7 CONCLUSION 290 7.1. Theological Significance and Linkage of Main Items Presented 291 7.2. Strength of Thesis 295 7.3 Limitations and Future Research Areas 297 7.4. Implications for Policy and Practice 299 7.4.1. An integrative and interdisciplinary approach to entrepreneurial policy formulation 299 7.4.2 Import of ethnic entrepreneurship in immigration policy and community cohesion considerations 300 7.4.3. Dismissing the false distinction between entrepreneurial activities by faith groups and social entrepreneurship 301 7.4.4. Keener appreciation of the special case of female entrepreneurship 301 7.4.5. Importance of social analysis and enterprise development by African Caribbean Pentecostals and other faith groups 302 7.5. Conclusion 303 List of References Books and Articles Internet Sources LIST OF TABLES page 1. Table 1. Theological and Economic Vectors 68 2. Table 2. Comparison of educational attainment by ethnic groups 90 CHAPTER 1 INTRODUCTION The circumstances and experiences of minority groups in a host society have always been of particular interest to researchers. Theologians are no different, as the situation of other human beings ought indeed to be of some import to our understanding of the purpose and meaning of existence. The African Caribbean person living in the context of contemporary Britain is an example of an ‘other’ in a mainstream society, which warrants a detailed understanding. Understanding is incomplete in the absence of a keen appreciation of the economic conditions, which are attendant on the African Caribbean person and the ways in which she responds to opportunities and challenges. For many persons, regardless of status and exposure, there is a reluctance to engage with economics from a theological perspective. For although the early centuries of Christianity and theology featured significant levels of commonality between church and society, this declined tremendously with the onset of what has been referred to as the Enlightenment. The ensuing centuries saw the development of political economy and then economics as academic disciplines. Despite the various British (Anglican) Christian political economists and others who might have been of similar open theological orientation; as well as clearly identified common threads rooted in moral values, there was an increasing divergence between the discipline of economics and theology. A difference in method was clear as economics is increasingly seen as rational; an arriving at facts based on a certain type of mathematical rationality and 1 deduction that was supposedly removed from the shackles of the historical. Theology on the other hand, remains obedient to the historical involvement of God in time. This position informs the method by which it has arrived at its findings, largely using as its point of departure the advent of Christ in history. The ends or objectives of theology include the pursuit of an understanding of God and how God works through history. Economics to a great extent sees utility, efficient allocation of scarce resources and economic growth as not just worthwhile but pre-eminent ends. This would render it at odds with the traditional views of theology – the “queen of the sciences”.1 A synthesis of ideas, attempts and approaches to bridging the gap between theology and economics was undertaken by D. Stephen Long in his work Divine Economy: theology and the market.