Diaspora entrepreneurs' push and pull institutional factors for investing in Africa: insights from African returnees from the United Kingdom

Abstract

Applying the institution-based views, this article conceptualises how diaspora entrepreneurs take stimuli from the push and pull institutional factors to develop business enterprises in their countries of origin. Using cases of African diaspora entrepreneurs in the UK and the grounded theory methodological approach, our conceptualised model demonstrates that the diasporas use the new knowledge, skills and wealth they have gained in the UK in tandem with support from trusted family, kinship and business ties at home to develop enterprises. It further demonstrates that diaspora entrepreneurs foster resilience to withstand weak formal institutions in their countries of origin and the discriminatory obstacles in the UK. We also found that institutional barriers which served as push factors that encouraged or forced migrants to leave their home countries to seek greener pastures abroad may later become pull factors that enable them to engage in diaspora entrepreneurship which is often characterised by paradoxes. Particularly, the informal institutions that constrain foreign investors can become assets for African diaspora entrepreneurs and help them set up new businesses and exploit market opportunities in Africa. The implications of the study for diaspora entrepreneurship literature are outlined