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
Date Written: 2012
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: Suggested Citation