MPI Study: Mobilizing Diaspora Entrepreneurship for Development

  • Date Posted: November 15, 2011
  • Authors: Kathleen Newland, Hiroyuki Tanaka
  • Organizations/Projects: Migration Policy Institute
  • Document Types: Evidence or Research, Technical Report
  • Donor Type: U.S. Agency for International Development

Diaspora entrepreneurs are increasingly recognized as playing an active role in job creation and economic growth in their countries of origin or ancestry through the establishment of new businesses. Recognizing business opportunities and assessing the myriad risks of doing business, these entrepreneurs are going ahead to start small and medium enterprises (SMEs) that are offering new products and services, thereby fostering innovation and job growth in the marketplace of their country of origin.  

This report is a study by the Migration Policy Institute under a USAID grant, which examines how diasporas are in a unique position to have a positive effect on the economy of their countries of origin - the key is for those countries to seize the opportunities. This report documents how diaspora entrepreneurs often are motivated to contribute to job creation and economic growth in their native lands. But, many developing countries have met only limited success in attracting diaspora investors and entrepreneurs.