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What strategies do diaspora entrepreneurs employ to sustain their businesses during economic recessions in their host countries?

I'm studying migrant economies and their role in community resilience. During a host-country recession, do diaspora entrepreneurs leverage transnational networks, shift to ethnic niche markets, or pivot business models differently than non-diaspora businesses? What are their unique vulnerabilities and strengths?

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By Akshay Answered 1 year ago

From my fieldwork, diaspora entrepreneurs often display remarkable resilience rooted in their transnational social capital. Key strategies include: leveraging informal credit networks within the diaspora community for liquidity, pivoting to serve the essential needs of their co-ethnic community (which may be less sensitive to broad recessions), and utilizing flexible, trust-based family labor to reduce costs. They may also activate transnational trade links to source cheaper goods or access markets in their country of origin that are not in recession. However, they remain vulnerable due to often operating in marginal sectors with low barriers to entry. Their strength is not just individual grit but the mobilization of collective, cross-border resources.

   

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