The role of immigrant entrepreneurship in the economy of a city: The case of Somali immigrants in Nairobi

Abstract

The paper is an attempt to analyse the role of immigrant entrepreneurship to the economy of a city with a particular emphasis on the economic contributions made by the Somali immigrants in Nairobi. A number of shopping malls, which accommodate a good deal of small enterprises, came up recently in Eastleigh, Nairobi. These small businesses are owned and run by Somali immigrants. Currently, the area serves as a business hub for Eastern and Great Lakes regions in Africa. This is an immigrant entrepreneurship phenomenon that is worth to be studied or investigated. Theoretical and empirical immigrant entrepreneurship literature proved that immigrant businesses are important catalysts to economic development and growth. This paper discusses entrepreneurship, different types of entrepreneurship; theories of entrepreneurship; concepts related to immigrant entrepreneurship; factors that lead global immigrant entrepreneurship and its theories; contribution of immigrant entrepreneurship to an economy; problems faced by immigrant entrepreneurship. Moreover, the paper looks at historical perspectives of Somali Immigrants in Kenya; their community values; their economic organization and social relations; and how the Somali immigrants contribute to the economy of Nairobi and subsequently to the larger economy of Kenya. The study employed mainly library research and -.. observation approaches. The first approach was used to explore generally the role of immigrant entrepreneurship in an economy of a city, while the latter method was used to observe particularlj, how Somali Immigrants contribute to the economy of Nairobi city. The paper proposes the theoretical framework that conceptualizes the immigrant entrepreneurship as combinations and interactions of such characteristics as innovativeness, opportunity alertness, positive structure of economic opportunity, positive cultural resources, calculated risk-taking propensity, personal resourcefulness and achievement orientation. Economic contributions of the S<:...malimmigrants in Nairobi are actually apparent. Somali entrepreneurs contribute economic development and growth of the Nairobi city through jobs that make it possible for many Kenyan people to earn something to provide for their families,