International Capital Flows and Small Business Development: Evaluating the Role of International Remittances

European Journal of International Management, Vol. 6, No. 5, 2012, pp. 486-502.

17 Pages Posted: 21 Dec 2015

See all articles by Colin Williams

Colin Williams

University of Sheffield - School of Management

Peter Rodgers

University of Sheffield

Marijana Baric

University of Buckingham - Business School

Date Written: 2012

Abstract

To evaluate the importance of remittances in international capital flows, a burgeoning macro-economic literature has displayed their contribution to national, regional and local economic development. Until now, however, there have been few micro-economic studies of the effects of remittances. This paper fills that gap. The aim is to demonstrate how the remittances from profit generated by an entrepreneur in one country can act as capital for developing business ventures in another country. To do this, in-depth interviews are reported with twelve entrepreneurs, seven in the UK who send remittances to Ukraine to support the development of business ventures, and five entrepreneurs operating in Ukraine whose business ventures are supported by international remittances from friends and family. The outcome is a clear display of the role played by international remittances in enabling entrepreneurs to develop their international operations.

Keywords: international remittances, small business development, informal entrepreneurship, informal sector

JEL Classification: H26, J46, K42, O17

Suggested Citation

Williams, Colin and Rodgers, Peter and Baric, Marijana, International Capital Flows and Small Business Development: Evaluating the Role of International Remittances (2012). European Journal of International Management, Vol. 6, No. 5, 2012, pp. 486-502., Available at SSRN: https://ssrn.com/abstract=2706148

Colin Williams (Contact Author)

University of Sheffield - School of Management ( email )

15 Conduit Road
Sheffield, S10 1FL
United Kingdom

HOME PAGE: http://https://www.sheffield.ac.uk/management/staff/williams/index

Peter Rodgers

University of Sheffield ( email )

17 Mappin Street
Sheffield, Sheffield S1 4DT
United Kingdom

Marijana Baric

University of Buckingham - Business School ( email )

Hunter Street
Buckingham, MK18 1EG
United Kingdom

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