Abstract

Malawi's refugee crisis has been a source of both inspiration and hostility in the country. This
is due to widespread and violent resentment of Malawian refugees who engage in
entrepreneurial activity. The overall goal of this study is to investigate the factors that
contribute to successful entrepreneurship ventures among Malawi's refugee population both
in Dzaleka camp and outside the camp.

The lessons learned can be applied by native Malawians to develop better business ownership
strategies. The research will employ mixed research questions, with both qualitative and
quantitative approaches used in data analysis, a questionnaire developed as a collection tool,
and a sample size of 100 determined using snowball rolling sampling techniques.

In addition to conducting interviews with various key informants, this study will collect
cross-sectional data using semi-structured questionnaires. We will use the Statistical Package
for Social Science (SPSS), as well as STATA and Microsoft Excel, to carry out the data
analysis process.

The study's findings will help policymakers understand how the burden of refugees can be
transformed into the country's primary economic driver, as well as how refugees can be
integrated into national development agencies and better refugee policies can be formulated.

Key Words: Dzaleka, Refugees, Entrepreneurship, Success Factors

Table of Contents
i|Page
 Abstract...................................................................................................................................i

CHAPTER 1: INTRODUCTION..............................................................................................1

1.1. Introduction.................................................................................................................1

1.2. Background Study.......................................................................................................1

1.1.1. Refugees' Business in camps................................................................................1

1.1.3. Refugees Business outside camps............................................................................3

1.3. Problem Statement.......................................................................................................3

1.4. Research objectives.....................................................................................................4

1.5. Research Questions.....................................................................................................4

1.6. Significance of the study.............................................................................................4

1.7. Scope of the study.......................................................................................................5

1.8. Limitations of the study...............................................................................................5

CHAPTER 2: LITERATURE REVIEW...................................................................................6

2.1. Introduction.................................................................................................................6

2.7. Displaced people.........................................................................................................6

Refugees.............................................................................................................................6

Internally Displaced person................................................................................................6

Stateless person..................................................................................................................7

Asylum Seeker...................................................................................................................7

2.8. Current Refugees status in Malawi..............................................................................7

2.9. Entrepreneurship by Refugees.....................................................................................8

Benefits of entrepreneurship for refugees and communities..............................................9

2.10. Factors for Refugees entrepreneur success..............................................................9

Cultural Factors..................................................................................................................9

2.11. Capital ( Cash, Social and Human)........................................................................11

Government policies and entrepreneurship......................................................................13

2.12. Theoretical framework; Refugees entrepreneurship..............................................15

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 Introduction......................................................................................................................15

Push and Pull Theories.....................................................................................................15

Necessity Versus Opportunity Theories...........................................................................17

Middleman Theory...........................................................................................................18

The Interactive Theory.....................................................................................................20

2.13. Conclusion and gap analysis..................................................................................21

CHAPTER 3: RESEARCH APPROACH AND METHODOLOGY.....................................23

3.1. Introduction...............................................................................................................23

3.2. CONCEPTUAL FRAMEWORK..............................................................................23

3.3. Research design.........................................................................................................24

3.3.1. Area of Study.........................................................................................................25

3.3.2. Participants.............................................................................................................25

3.3.3. Research Design and Methods...............................................................................25

3.4. Research Philosophy..............................................................................................25

3.4.1. Research Approach................................................................................................26

3.4.2. Research Strategy...................................................................................................26

3.4.3. The questionnaires.................................................................................................26

3.4.4. Case-Based Interviews..........................................................................................27

3.5. Sampling.......................................................................................................................28

3.5.1. Sample Size Determination....................................................................................28

3.6. Data Collection methods and tools...............................................................................29

3.6.1. Primary Data..........................................................................................................29

3.6.2. Secondary Data......................................................................................................30

3.6.7. Pretesting of the data collection tools....................................................................30

3.7. Data Analysis................................................................................................................30

3.8. Ethical Considerations..................................................................................................30

References............................................................................................................................32

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 CHAPTER 1: INTRODUCTION
1.1. Introduction
In Malawi, the economic activities of refugees have become a source of both inspiration and
hostility due to the pervasive, violent resentment towards refugees who engage in
entrepreneurial activity (Kong, 2022) As a means of replicating positive practice and as a
strategy for shaping appropriate policy interventions according to Radoš et al.(2021), there
have been widespread calls to comprehend the drivers of entrepreneurial practises among
refugees, The goal of this study is to investigate the determinants of refugee entrepreneurial
success in Malawi. This study will help policymakers understand how the burden of refugees
can be transformed into the country's main economic driver and how policymakers can
incorporate refugees for national development agencies and formulate better refugee policies.

1.2. Background Study

The refugee situation has always been a concern in different countries, with recent cases of
tens of deaths of unidentified refugees in Malawi found in Chikangawa forest in Mzimba
posing a serious threat to the country under the protection of foreigners and refugees
inclusive (Zodiak news, 2022).

According to the United Nations, As of May 2022, Malawi is reported to have over 52,258
refugees and asylum seekers. The majority of these people came from the Democratic
Republic of the Congo (31,551), Burundi (11,241), Rwanda (6,939), and Mozambique. The
remaining 2,523 people will be of different nationalities. Because Malawi has an
encampment policy, all refugees and asylum seekers are housed in the country's sole camp,
known as the Dzaleka refugee camp; this is a place to protect them and citizens from the
scramble for resources and hostility (United Nations High Commissioner for Refugees, 2022)

(Chima & Horner, 2022) noted that the initial capacity of Dzaleka camp was designed for
10,000 people; however, there are now more than 50,000 people staying there, which poses
significant threats to people's health, further reports have revealed that there is Inadequate
sanitation, a lack of freedom of movement, and a crowded living environment are some of
more the difficulties that refugees in the Dzaleka refugee camp (Damiano et al., 2022).

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1.1.1. Refugees' Business in camps
The vast majority of people have the wrong idea that refugee camps are places where no
economic activity takes place and where people who don't work can only get help. But many
researchers found a huge number of small businesses inside and near the camp. These
included grocery stores, tailors, barbershops, taxis, phone repair shops, and many more (Nath,
2021). Researchers at the Dzaleka camp in Dowa and in the nearby city of Lilongwe talked to
the owners and employees of different businesses to get a lot of information about the
economy. They found that both locals and refugees take part in the economy and that these
two groups have a lot to do with each other as consumers, suppliers, workers, and creditors,
such that the economy of Dzaleka is intertwined with the surrounding economies of the host
community Dzaleka need to better understand the socio-economic profile of the people, as
well as the economic linkages and market opportunities to develop programmes that can
make a difference and help people earn a living and support their families. (Wirsig, 2020).

Further studies have revelated however that only a small percentage of refugees are in a
position to launch a business, and those who are in a position to do so face greater obstacles
than their equivalents in Malawi. Despite this, the fact that there is a thriving economy in the
camp is evidence of the enterprising spirit of the refugees and contradicts the notions that are
generally held (Makhumula, 2018).

There have been impacting of financial constraints on the resulting protection problems in the
Dzaleka camp, the refugees are reported to resort to coming up with entrepreneurship
ventures that would decrease dependency on international aid and allow for families to be
able to meet their needs (Damiano et al., 2022b) in support to this observation, Malawi
Parliament (2020) also commented that Resilience and entrepreneurship of refugees is
evident all over Dzaleka refugee camp, With food rations constantly fluctuating, sometimes
as low as 50% of recommended rations, depending on the funding situation of the World
Food Programme, some residents of the camp have taken it upon themselves to find creative
ways to help support their families (Parliament., 2020)

As a conclusive remark Kaiti (2020) said recognises that there are entrepreneurs in the
refugee camp who, with some additional support, could eventually grow their businesses, and
some human rights commentators in Malawi recommended that UNHCR have to embark on
a livelihoods survey in Dzaleka camp.  Once the results are tabulated, they will be used to

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develop a strategy to help refugees and surrounding communities on the path to self-reliance
and entrepreneurship(UNHCR, 2021)

1.1.3. Refugees Business outside camps

Because of complaints about the quality of life and overcrowding in the Dzaleka camp from
current and former refugees both inside and outside the camp, many refugees have fled the
camp, either legally or illegally, with an estimated 2,000 refugees leaving the camp and
moving to other parts of Malawi (Wirsig, 2020b). Almost all of them began with locally
owned and operated businesses such as supermarkets, boutiques, hair and nail salons, and
restaurants. Aside from that, many refugee-owned businesses have thrived in areas where
Malawian-owned businesses have failed. It has also been established that refugee businesses'
services are highly valued by the local community. (Damiano et al., 2022c)

One thing is certain: refugees may be engaging in successful entrepreneurship activities that
Malawians are not, so this study will focus on identifying the factors that contribute to the
success of refugees' businesses. This will enable the lessons learned to be applied to the
development of the entrepreneurial spirit in Malawians, as well as assist the government in
capitalizing on the entrepreneurial endeavours of refugees to reduce the country's refugee
burden and drive the economy.

1.3. Problem Statement

More and more people are being forced to flee their home countries, causing crises all over
the world. By 2022, over 10 million people will be refugees worldwide, (Kayaoglu, 2022) It
is unlikely that any country, including Malawi, will be unaffected. According to studies,
refugees pose an economic threat because they require jobs, low-cost housing, access to
health care, and other services. Furthermore, they pose a health risk because some refugees
come from countries with significantly higher rates of certain diseases (e.g., tuberculosis,
AIDS). Refugees also pose an identity threat, particularly if they have a "different cultural
identity, religious identity, and value system than members of the host community."
(Gulland, 2015)

With Malawi having a 7.40 unemployment rate, over 80 per cent of families lacking proper
housing, and the government of Malawi failing to adequately feed its citizens, the influx of
refugees threatens to deplete the country's resources (Msiska, 2020).

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While this is the case, some refugees in Malawi have been successful in entrepreneurship and
contributing to the country's social economic activities, including providing jobs for
Malawians; therefore, the research seeks to identify factors that lead to the success of the
refugees’ entrepreneurs, so that lessons learned can be applied by local Malawians to develop
better entrepreneurship strategies.

1.4. Research objectives.

The main research objective of this study is:

1. To determine the factors that influence the success of refugees’ entrepreneurship

in Malawi.

1.4.1. Specific objectives

This research is supported by the following research objectives;

i To determine what cultural practices motivate refugees to start businesses in

Malawi.

ii To investigate how capital influence refugee entrepreneurship in Malawi.

iii Determine how government policies impact refugee entrepreneurship in Malawi.

1.5. Research Questions

The following research questions guide this study.
i What are the cultural factors that motivate refugees to start businesses in Malawi.?

ii How does capital affect the entrepreneurial spirit of refugees in Malawi?

iii How do government policies impact refugee entrepreneurship in Malawi?

1.6. Significance of the study

The refugees in Malawi are the primary subject of this study. The study evaluates the
entrepreneurial endeavours of the refugees, even though the perspective of the refugees held
by the country that is hosting them is almost always negative because refugees pose a threat
to the social, economic, and political environment. This study will look at the positive aspects
of the refugees', thus entrepreneurship, and it will learn how the refugees are successful in
their entrepreneurial endeavours. The research will be of assistance to the government in
developing better policies to help refugees who contribute to the economy of the country

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through entrepreneurial endeavours. The study will also help to decongest the camps by
providing lessons on entrepreneurship to the refugees, who may also run successful
businesses in the future as a result of these lessons.

1.7. Scope of the study

The factors that influence the success of refugee entrepreneurship will be the primary focus
of the research that will be conducted. The majority of the people who will be studied are
going to be refugees living in the Dzaleka camp in Dowa as well as refugees living outside
the camp, particularly those who are engaged in business activities; as a result, the researcher
will systematically select business owners who are refugees from both inside and outside the
Dzaleka camp.

1.8. Limitations of the study

The research that is being proposed would make use of a qualitative research study, with the
semi-structured interview functioning as the primary method of data collection. It requires
taking a descriptive stance and conducting an initial analysis of the factors that influence the
success of refugee entrepreneurs in Malawi. Due to the time constraints involved in first
conducting the interviews and then analysing the data, it will only be possible to test a
selected few participants chosen using snowball rolling from the sample.

Because the researcher intends to conduct the study only in urban areas, they will exclude
people who live in rural areas. As a consequence, the findings may not be representative of
refugees residing in Malawi as a whole. The breadth of the investigation is yet another
limitation of the study. Because the research involves refugees, it is unlikely that the refugees
outside the camp will be willing to provide complete information with this is because some
participants may be afraid that the study is a trap set by the government to send them back to
camp or to imprison them.

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 CHAPTER 2: LITERATURE REVIEW

2.1. Introduction
2.6.

The primary purpose of this literature review is to find out what is already known about the
area that is being explored and to provide an overview of the various theories and points of
view concerning refugee entrepreneurs. the review will first start by understanding the
displaced people as a means of understanding who are refugees, then an in-depth analysis of
the research will reveal multiple, distinct, and sometimes overlapping hypotheses regarding
the factors that motivate refugees to launch and maintain their successful businesses. The
review will look at some refugee entrepreneurship theories in addition to social and cultural
aspects. Finally, the review will also look at the gap in their search and why there is a need to
further study the factors that influence the success of refugee success in entrepreneurship.

2.7. Displaced people

People are displaced in their homes for a variety of reasons. Several works of literature have
been written to recognise and categorise various displaced people; here are a few examples.

Refugees
Viet Thanh Nguyen (2018) defines a refugee as a person who has been forced to flee their
home country due to persecution, war, or violence. A refugee is someone afraid of being
persecuted because of their race, religion, nationality, political beliefs, or membership in a
particular social group. Most likely, they are unable or afraid to return home. The leading
causes of refugees fleeing their countries are war and ethnic, tribal, and religious violence.
(Viet Thanh Nguyen, 2018)

Internally Displaced person

Internally Displaced Persons (IDPs) are people who have been forced to flee their homes but
have never crossed an international border. These people seek safety wherever they can find
it, including nearby towns, schools, settlements, internal camps, and even forests and fields.
IDPs, who include people displaced by internal conflict and natural disasters, are the largest
group served by UNHCR. IDPs, unlike refugees, are not protected by international law and

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are not eligible for many types of aid because they are legally protected by their
government(UNHCR,2021).

Stateless person
A stateless person is not a citizen of any country. Citizenship is the legal bond that exists
between a government and an individual, and it provides the individual with certain political,
economic, social, and other rights, as well as the responsibilities of both the government and
the citizen. A person can lose their statehood for some reasons, including sovereign, legal,
technical, or administrative decisions or oversights(UNHCR,2021)

The true extent of statelessness is estimated to be much higher than previously estimated,
because fewer than half of all countries submit any data, and some of the world's most
populous countries with large suspected stateless populations do not report on statelessness at
all. (Bianchini, 2017)

Asylum Seeker
Conlon ( 2010) defines asylum as the right to be recognised as a refugee, which entitles the
holder to receive legal protection as well as material assistance, and it is sought out by people
who have fled their home country in the hopes of finding safety in another. A person seeking
asylum is required to provide evidence that supports his or her claim that they are at risk of
being persecuted in their home country. (Conlon, 2010)

The Geneva Convention from 1951 is the most important piece of international law about
refugees. The Convention defines in unequivocal terms who exactly qualifies as a refugee, as
well as the types of legal protection, other forms of assistance, and social rights that should be
extended to them by countries that have ratified the document. The Convention also defines
the responsibilities that a refugee owes to the governments of their host countries as well as
certain groups or individuals, such as war criminals, who are not eligible for refugee status. In
the years immediately following World War II, the Convention's scope was restricted to the
protection of refugees primarily from Europe. However, another document, the 1967
Protocol, broadened the Convention's application in response to the growing problem of
forced migration across the globe (Bowles, 1996)

2.8. Current Refugees status in Malawi

Not every refugee immediately launches themselves into an entrepreneurial endeavour; some
of them are also the victims of injustice, and others commit crimes in the country, for
instance (PODRIEZ & ZHUKOV, 2021). According to the reports by the Malawian Police
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Service and the United Nations Office on Drugs and Crime (UNODC), they are also
widespread exploitation of men, women, and children that will be taking place in a refugee
camp in Malawi. Now, several publications claims measures are being taken to bring to
justice the individuals responsible for the human trafficking networks that have been
operating within the Dzaleka Refugee Camp, as well as to identify and save the victims of
these networks (Chima & Horner, 2022b)

According to United Nations, the Dzaleka refugees camp functioned like that a Sunday
market, which is a place where people would come to buy children who would later be used
in exploitative situations such as forced labour and prostitution (Chak, 2018). However, some
refugees are doing better things in the country and are more economically free than citizens
in Malawi(United Nations, 2022). These refugees have been so successful in business that
they are even envied by the locals. The review of literature will primarily look at the
entrepreneur aspect of the refugees and the theoretical framework that underpins it.

2.9. Entrepreneurship by Refugees

According to (Mawson & Kasem, 2019), refugees are the most entrepreneurial in many
countries, and they have nearly twice the likelihood of being successful entrepreneurs
compared to the general population of the host country. Despite this, the policies that are
currently in place and the refugee settlement services that are provided in many host countries
put more of an emphasis on other types of employment for refugees and rarely encourage
them to pursue entrepreneurial opportunities (Black et al., 2022)

A new report published by the Centre for Policy Development (CDP) and the Open Political
Economy Network (OPEN), recommended that assisting refugees in the launch of new
businesses may result in a boost to the economies of the countries that assist. (Wendy
Pettifer, 2017)

Altindag et al., (2018) argued that a rise in the number of businesses run by refugees leads to
a rise in the number of jobs available for both refugees and locals, in addition to an increase
in the number of goods traded both domestically and internationally. The important goal of
recognising the entrepreneurial spirit of refugees also has the beneficial side effect of
assisting in putting to rest the widespread misconception that refugees are a financial burden
for the communities to which they relocate (Altindag et al., 2018).

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 Benefits of entrepreneurship for refugees and communities
Research done by Faith et al., (2019) revealed that the economic and social well-being of
both refugees and the community as a whole can be improved when refugees engage in
entrepreneurial endeavours. Self-employment provides refugees with the mental health
benefits, social status, and pride that come along with being the owner of their businesses. In
addition to this, it offers more chances for them to cultivate relationships within their
community and to improve their command of the English language. Increased access to
goods and services, jobs, increased tax revenue, and reduced spending on welfare are some of
the additional monetary benefits accrued by the community as a result of this development.
(Fajth et al., 2019)

Other similar research contends that Even though there is currently a lack of support
available, refugees who start businesses can generate a higher median income from those
businesses than the citizens of the host country in general. Some people start businesses out
of necessity, while others do so after recognising an opportunity that natives in the area have
overlooked or after adapting their prior experience to the culture of the host country. (Nambei
Asoba & K. Tengeh, 2016)

2.10. Factors for Refugees entrepreneur success.

The are several factors that influence the success of the refugees’ entrepreneurship, this
review will focus on cultural factors and capital factors, and the government policies which
will be discussed further below will be identified by several authors as three of the most
important contributors to the entrepreneurial achievements of refugees.
(Phonthanukitithaworn et al., 2019)

Cultural Factors.
Refugees' rich cultural backgrounds and networks are seen as valuable assets by many.
Culture is defined as "the dynamic accumulation of shared characteristics that shape a
people's responses to their environment” Furthermore, it is explained in terms of how
societies structure their knowledge and social behaviour (McGrath et al., 2021). Therefore,
culture is not universal because it varies in terms of how people behave in society and what
they know from one group to the next.

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Entrepreneurial behaviour, according to Murad et al., (2022b) is typically the result of a
person playing catch-up with the rest of society. The cultural theory will be among the
earliest attempts to explain the superior performance of ethnic and refugee businesses
compared to their domestic competitors.

Strong cultural traits such as dedication and hard work, belonging to a strong ethnic
community, taking risks, solidarity and loyalty, and a desire to work for one's self are
ascribed to refugees in this theory (Volery, 2017). The theory also posits that, depending on
their cultural background, refugees may be overrepresented in certain types of small
businesses

Why some people, especially natives, are not as entrepreneurial as refugees can be explained
by the cultural hypothesis. For instance, Asian Americans tend to be viewed more favourably
as business owners than black Americans. This is due to the stereotype that African
Americans are too individualistic and lack the community spirit that helps businesses thrive
in other cultures (Oskooii & Ajali, 2017)

Because of the importance, their culture places on starting and running one's own business,
members of certain cultural groups are statistically more likely to do so. The Chinese,
Koreans, Jews, South Asians, and Cubans in America are just a few examples (Piperopoulos,
2018). When it comes to selling goods and services, ethnic communities have a distinct
advantage (ethnic food products). This gives them an advantage over their local competitors
and generates unique demand for their products among consumers (Piperopoulos, 2018).

On the cultural aspect, one researcher commented that “If you want to succeed in a foreign
market, you shouldn't limit yourself to selling products made by people of the same ethnic
group as you”, the researcher further gave an instance on As Korean community in Chicago
can attest, the quality of the goods and services offered by the ethnic community is not
always high. For a company to thrive, it needs to reach out to as many customers as possible.
So, it is suggested that for refugees to succeed economically, they should cater to the wants
and needs of local consumers (Ooka, 2018).

Research on entrepreneurs and business growth over the past 30 years has uncovered some
factors that contribute to business expansion. However, connecting cultural factors to
entrepreneurial success remains obscure. For instance, El-Namaki (2020) claimed that
cultural factors do play a role in whether or not entrepreneurs are successful at launching and
growing their businesses, but he failed to provide any supporting evidence.

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When customs and beliefs are codified into institutions, cultural norms are preserved over
generations ((Wilf, 2015)

Hofstede Wilf (2015) developed a model that uses four cultural dimensions to address
universal issues. This was his attempt to shed light on the cultural context of business, these
dimensions of culture found were Power distance (how people handle differences),
individualism (how people relate to each other), uncertainty avoidance (how people approach
the future), and materialism (how much material goals are pursued as opposed to spiritual
ones).

According to Nuryani, (2018) a community that has amassed a great deal of social capital
stands a better chance of success than those with less. Culture and religion play a role in
explaining why some societies are more entrepreneurial than others. Entrepreneurship would
flourish in a culture that encourages its members to constantly develop their skills (Nuryani,
2018).

2.11. Capital ( Cash, Social and Human)

Tamer et al., (2014) stated that when a business owner has the social capital, they can
leverage their relationships for professional gain. The importance of social exchange for
entrepreneurs' social capital, studies reviewed show the effects of providing tangible
resources to providing intangible resources when examining the impact of exchange ties on
performance. One excellent example of a tangible resource is the network of businesspeople
who lend money to one another (Nuryani, 2018b).

In terms of social capital, individuals tend to have divergent views. In his seminal work from
2000, Robert Putnam discussed the interplay between bonds, bridges, and links as they
pertain to social interaction. However, Nee and Sanders (2016) created a framework for
social capital that recognises social capital as part of a more nuanced set of entrepreneurial
resources.

Based on their research,(de Zúñiga et al., 2016) determined that three distinct types of
economic expectations of social capital exist: value introjection, group membership, and trust
that can be enforced. For social capital to be effective, there must be a high level of trust
between the participants. Connecting external networks to bring in resources and fostering
trust among employees are two of its many potential benefits (de Zúñiga et al., 2016) In
addition, from the perspective of an entrepreneur, the networks should provide and make it

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simpler to take advantage of new opportunities and aid in the discovery, collection, and
distribution of scarce resources Possibilities for acquiring, assessing, and deploying
exploitative resources are also raised

(Christidis, 2020) pointed out that, having trusted and a network of contacts is beneficial for
more than just making connections and learning about new opportunities. Also, it's crucial in
making financial dealings cheaper

Also, he (Christidis, 2020) further urged that Trust, mutual obligation, personal feelings, and
direct communication are far more important than formal, contractual, and official
bureaucratic procedures when it comes to business transactions

It also lends credence to the claim made by Nee and Sanders (2001) that social capital is both
a potent political and economic shield. One must be familiar with the various forms of social
capital to appreciate its significance.

According to Portes and Sensenbrenner (2011), there are three distinct types of economic
expectations related to social capital. To start, value introjection demonstrates how societal
norms influence the way money is spent. Furthermore, social capital greatly relies on group
membership. When people in a group work together, they share resources and knowledge.
There is no monetary value involved in these transactions, only social capital. Trust that is
enforceable through economic transactions is the final type of social capital.

These three forms of social capital are all present in the commercial transactions that refugees
engage in. Opportunity in the business world is discussed and traded amongst them. They
conduct business differently depending on the level of mutual respect and trust among them.
They can borrow money from one another verbally and informally, without any paperwork or
formalities. Every month, everyone in the group must chip in a certain amount of money and
accept whatever consequences may arise. As an additional strategy, some refugee
entrepreneurs pool resources to expand their operations. This gives them a competitive edge
over the local entrepreneur. (Tamer et al., 2014b)

Conversely, human capital is crucial to the success of entrepreneurs and their businesses. The
answer lies in the relative value of the various combinations of knowledge and ability
(Gilleskie & Hoffman, 2014)

According to Gilleskie & Hoffman (2014), human capital can be either "general" or
"specific." The abilities and knowledge that make up general human capital can be put to use

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in any economic system. However, specific human capital consists of competencies and
expertise that are more limited in their applicability across industries and markets. Based on
the theory of human capital, education is crucial because it increases productivity. When new
opportunities arise, those with the highest levels of human capital are the ones who seize
them. (Ruzikulov, 2022)

Entrepreneurship, according to Nee and Sanders (2015), is correlated negatively with human
capital. A lot of people claim that those who invest in their education are more likely to
succeed in the professional and public service sectors. Entrepreneurship is described as
"heaven" by Jones, McEvoy, Barrett, and Brah (2018) and Brah (2017) for those who
struggle to find employment in the traditional economy. According to Nee and Sanders
(2015), business ownership provides a viable alternative for refugees to earn income when
they lack human-cultural capital that is fungible in the conventional economy.

Saunders (2018), Yoon (2019), Bailey and Roger 2014), Konnie (2016), and Chiumia (2019)
all discovered that refugees' self-employment and racial/ethnic/national/class differences in
business ownership were influenced by human capital and social capital. Since most refugees
do not have access to the formal labour market, they often see starting their businesses as
their only employment opportunity. Business ownership also allows them to put their human
capital to work (Sanders and Nee, 2015).

Government policies and entrepreneurship

It has been established that entrepreneurship is a very vital ingredient for the creation of jobs
as well as economic development. This is because the success of income generation for the
majority of rural and urban residents who do not currently have a recognized paid job is
highly dependent on entrepreneurship (Fami, 2016). There has been a significant amount of
research conducted at the urban, state, and national levels on the topic of the connection
between entrepreneurship and economic growth due to the proper government policies

According to research conducted by Sambrani, (2016), the contribution of the

entrepreneurial sector to both employment and GDP is on the rise. For this reason, it was
suggested that governments should place as few restrictions as possible on entrepreneurial
activity (Acs Z. et.al 2004). In the case of policies that provide support from the government,
it is generally assumed that since the government is in charge of the development of
entrepreneurial opportunities, it should provide the essential resources required to the best of
its ability.

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 One of these resources is the provision of an atmosphere that is favourable to business,
which will significantly encourage entrepreneurial activity.

In this context, the term "government policy" refers to any course of action that is intended
to regulate and improve the conditions of small and medium-sized enterprises (SMEs) in
terms of supportive, implementation, and funding policies by the government. According to
this definition, the purpose of government policy as it relates to entrepreneurial practice is to
promote entrepreneurship by creating an environment that is favourable for the people who
engage in entrepreneurial activity. (Bosworth, 2015)

This is accomplished by the establishment of guidelines that will regulate entrepreneurial

activity in general. This is done for the simple reason that entrepreneurship is the foundation
upon which a nation's path to industrialization is built (Sadat, 2022).

In addition, the government needs to enact policies that would make operating their
businesses easier for business owners. It was argued by Pals.S. (2016) that there is a need for
government policies as they relate to entrepreneurship to be successfully implemented
regardless of which administration is in power to achieve the goals of the guideline, which
are frequently and always lacking.

Pals.S. argued that this is necessary to achieve the goals of the guideline, which are
frequently and always lacking. The governments of almost all nations, and particularly those
of developing nations, have, in the recent past, dedicated a significant amount of time and
energy to the formulation of policies designed to encourage and support entrepreneurial
endeavours ((Raimi, 2021) China, Brazil, Saudi Arabia, Malaysia, and Nigeria are just some
of the countries that provide examples (World Bank 2010). The Chinese government has
made concerted efforts to develop high-technology businesses through the implementation of
various policies and the allocation of resources ((Raimi, 2021)

The Brazilian entrepreneurial movement has become very established in a very short amount
of time as a result of policies implemented by the Brazilian government that is geared
towards the development of both low-tech businesses and highly technologically oriented
firms (Etzkowitz. H. 2012). According to a recent study (Salem. M. 2014), the Kingdom of
Saudi Arabia established a ten-year entrepreneurship effort and innovation plan in 2010. This
was reported in 2010. The plan's objective was to position the Kingdom on an economic
pedestal comparable to that of other highly competitive nations around the world. In the
context of Malaysia, the government's effort to develop the country through the expansion of

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technological entrepreneurship has resulted in the establishment of some technology funding
organisations. These organisations were established to provide full support to technological
businesspeople. This includes the establishment of venture capital firms by the government to
encourage investments in high-growth firms for the reason that it is difficult for high-growth
firms to raise adequate financing at the early stage of the growth of their businesses. The
government's goal is to encourage investments in high-growth firms (Ajagbe and Ismail
2014). There is a positive correlation between government policy and entrepreneurship,
according to the literature compiled from several studies (Greene.F. 2022). On the other
hand, the findings of other studies have shown that a negative relationship exists between
government policy and entrepreneurial activity. Because of this, the information presented
above demonstrates that there is a contradiction in the role that government policy plays in
encouraging entrepreneurship, particularly in developing countries. As a result, the influence
of government policy on the connection between entrepreneurial activity and outcome was
moderated.

2.12. Theoretical framework; Refugees entrepreneurship.

Introduction
The theoretical framework is the theoretical foundation of the research, and the purpose of
this section is to identify some of the theories developed by researchers. To provide for
themselves and improve their economic standing, refugees and asylum seekers often start
their businesses. Many hypotheses have been proposed to explain the motivations of refugees
who start businesses. Some of these theories are the "push" and "pull" model, the
"disadvantage" model, the "interactive" model, the "middleman" model, and the "n There is
duplication between the various theoretical frameworks proposed by various authors.
However, in this case, they are recorded as they are articulated in the literature to guarantee
complete coverage of the various vantage points put forward to explain entrepreneurialism
among refugees. A few of the theories incorporate ideas from elsewhere in the review.

Push and Pull Theories

The ability of refugees to launch new ventures is affected by a variety of factors. An
organisational structure will be proposed that classifies these as drivers and inhibitors of
ethnic minority members' (especially recent refugees') decision to launch their businesses
(Catron, 2017)

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Many people start their businesses because they are forced to by circumstances beyond their
control, such as unemployment, redundancy, retrenchment, a lack of formal job or career
prospects, or simply a desire to be their boss and avoid supervision (Kirkwood, 2009; Fatoki
and Patswawairi, 2015). Workers from underrepresented groups are often thought to be
forced into self-employment due to discrimination from employers, a lack of relevant
educational credentials, an absence of relevant work experience, and a limited ability to speak
local languages ((Catron, 2017)

Gaining proficiency in the local language greatly improves a newcomer's chances of finding
work and making friends. Without this, refugees have a difficult time interacting with the
community and finding work. It has found that in the United States, non-native English
speakers are less likely to be self-employed, but data from Australian refugees suggests the
opposite The push factor theory may be flawed because it fails to consider that minorities
may be motivated to become entrepreneurs by forces other than prejudice (Kitsak, 2019)

Some of the pull factors that encourage refugees to start businesses include the pull of one's
religious beliefs, the availability of unofficial channels of support like one's family and one's
cultural or linguistic group, and the desire to strike out on one's own, amass wealth, change
one's way of life, or put one's acquired skills and knowledge to good use Kitsak, 2019)

Some religious groups encourage their members to be self-sufficient because they believe it
is essential to their spiritual growth and the fulfilment of their religious goals. People of the
Muslim and Sikh faiths, for instance, tend to look favourably upon self-employment because
many prominent religious figures are also highly successful entrepreneurs Because of this,
preachers and believers may have a significant impact on whether or not members of their
congregations decide to go it alone (Clark and Drinkwater, 2020).

One of the main draws of starting a business is the chance to increase one's income. Benz and
Chen (2019) surveyed 590 African business owners in Kenya, Ghana, and Nigeria to better
understand what drove them to enter the industry. They found that people with more
education will be more likely to go into business for themselves and that for most people, the
chance to make money will be the primary motivation for starting their own companies.

Opportunities to further one's education are a common "pull" factor that inspires new
business owners to get their feet wet. Bates (2021) claims that the high success rates enjoyed
by Asian, Indian, and Filipino entrepreneurs can be attributed in large part to their extensive
education. There is a correlation between the availability of favourable opportunities and the

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likelihood that educated Asian refugee entrepreneurs will continue to operate independently
(Bates, 2020).

Necessity Versus Opportunity Theories

According to Nadathur (2016) refugees who go into business for themselves can be divided
into two categories: those who are "necessity driven" and are compelled to start their ventures
due to a lack of alternative employment opportunities, and those who are "opportunity-
driven" and are motivated to take advantage of specific market openings. Most people agree
that business ownership is important for the economy because of the way it boosts
employment, creativity, and social well-being ((Nadathur, 2016)

The dynamics of entrepreneurship can be drastically altered by factors such as the

institutional environment and the stage of economic development What constitutes
"underground" commercial activity varies greatly from country to country economic
development

The relative importance of necessity and opportunity in inspiring entrepreneurialism varies

widely from one country to the next (Acs et al., 2008).

Williams (2008) suggests that the need for survival, rather than the desire for financial gain,
motivates informal entrepreneurs in Eastern and Central Europe. More so than in countries
where entrepreneurs are more often motivated by necessity than opportunity, early-stage
business failure is less common in nations where entrepreneurs are more likely to be driven
by opportunity (Williams, 2007a). Researchers discovered a divide between "necessity
entrepreneurs," who launch ventures due to a dire financial predicament, and "opportunity
entrepreneurs," who do so because they see a lucrative prospect (opportunity
entrepreneurship).

Acs and Varga (2015) looked at the effects of entrepreneurship in 11 different countries and
found that while opportunity entrepreneurship significantly contributes to economic growth,
necessity entrepreneurship does not (including Malawi).

Individuals engage in the opportunity type of entrepreneurship when they believe that
activities like starting their own business are the best option available for employment, but
that they are not necessarily the preferred option and the necessary type of entrepreneurship
when individuals engage in such activities because they have to

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Opportunity entrepreneurship differs from necessity entrepreneurship by focusing on new
markets and businesses. According to Acs and Varga (2018), opportunity entrepreneurs are
people who go into business for themselves because they want to maintain or increase their
current standard of living, or because they want more financial and/or personal freedom.

Profitability and opportunity seizing will be the lenses through which Block and Wagner
(2010) examined the distinctions between the two types of entrepreneurship. German
researchers found that business owners who are "opportunity-driven" rather than "necessity
driven" will be more successful.

To date, not many studies have tried to illustrate the characteristics and driving forces behind
business owners in the informal economy, and those that did tend to take a necessity/choice
perspective (Williams, 2017a). The marginality thesis backs up the common perception that
people who work in the informal economy are paid less than their similarly situated formal
economy counterparts.

North American studies, especially those focused on ethnic minority and refugee
communities, frequently assume that economic necessity is the primary driving force behind
the decision to enter the informal sector (Williams, 20017a). On the other hand, there are
counterarguments. New York City's East Village's unofficial business owners will be the
focus of Snyder's (2014) research. She argues that her research shows that many people work
in the informal economy to achieve internal motivations like autonomy and financial security,
while most literature blames exogenous factors like discrimination and unemployment for
driving people into the sector.

Middleman Theory
The economic "middleman theory" best explains the phenomenon of ethnically-based
entrepreneurship (Volery, 2017). This theory was used to examine the economies of
transitory populations. They are in the middle because of several factors that all work
together to put them there. Since their suppliers and customers will be different from the
middleman, they settled on a strategy of rapid cash generation through commercial
entrepreneurship (Leopeng & Langa, 2018)

Middleman perspectives are in the minority, highlighting the theory of advantages' flaws
(Leopeng & Langa, 2018) According to this point of view, refugees are in a much worse
position now than they will be before they fled their homes ((Leopeng & Langa, 2018)

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Many members of the Korean diaspora have turned to small business ownership as a means
of escaping the economic hardships they have experienced since becoming refugees.

Research by Kim and Won (1985) shows that despite the odds, Korean refugees can start new
businesses with the support of other Koreans and their families. Also working long and
difficult hours are these refugees. In addition, small Korean businesses have a significant
competitive advantage over their rivals as a result of the dramatic reduction in their total
labour costs. The idea behind this is that refugees who want to avoid starting at the bottom of
the economic ladder should do so by launching their businesses. Small business development
is often prioritised in low-income areas because of a dearth of financial resources.

Starting a business requires a sizable financial commitment. Bank loans may be necessary for
entrepreneurs who lack the necessary startup capital. But getting credit from banks and
investors is difficult, so they'll have to turn to the capital markets for support. New ventures
have to pay to reach out to investors who will verify their legitimacy, and running a small
business is riskier because of its size

One of the biggest obstacles to business growth and expansion for refugee business owners is
a lack of access to financial capital. Because they lack access to even the most fundamental
banking services, refugees in Malawi are subjected to the additional discrimination (Landau,
2006). Most refugees do not have a refugee ID or a foreign passport with a permit, which are
both necessities for opening a bank account. Refugees and asylum seekers face a variety of
problems as a result of lengthy delays in receiving documentation. A prime example of how
limited access to financial services can stifle a refugee's business growth and prevent the
development of their enterprise is a lack of access to credit (Kendan, 2016).

Refugees frequently use their own or their family's savings to launch their businesses. Before
resorting to the credit markets, business owners can wait until they have amassed sufficient
funds internally (Kim et al., 2016). Additionally, most refugee businesses do not necessitate a
sizable initial capital investment.

To reiterate what has already been said, having supportive family members on board is
crucial when launching a new business. Money and people can be gotten from this (Sanders
and Nee, 2016). Refugees from the same family, for instance, may band together to form a
hiring bloc and secure higher wages and better working conditions for their members than the
company's regular clientele would be able to negotiate on their own. Interfamily loans help

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small businesses get off the ground quickly, and hiring family members helps keep costs
down (Sanders,2020).

In some cases, family ties can even be detrimental to the development of a company. To
comprehend refugees' self-employment, Kyoon (2016) notes that the middleman minority,
ethnic enclave, and reactive cultural theory frameworks all fall short. Korean-owned
businesses in Chicago were studied by Kim and Won (2013) and Yoon (2017), who
concluded that while tapping into ethnic resources will be useful for getting started, it will be
bad for the companies in the long run.

The Interactive Theory

The theory of interaction provides a new angle from which to examine the phenomenon of
refugees becoming successful business owners. According to this theory, the emergence of
ethnically focused businesses is the result of a nuanced interplay between the opportunity
structure and the group's resources (Hesslein, 2014)

It specifically considers "the interactive effects of entrepreneurs, depending on their personal

and ethnic resources, using business opportunities available under specific historical
conditions" (Fernandez and Kim 2014b). Market conditions like ownership and employment
prospects are examples of opportunity structures, as are the enabling laws and institutions
(Hesslein, 2014)Creating or joining a community with members of a similar ethnic
background can open up many doors. Therefore, there is a niche demand in these areas, and
only business owners from the same cultural background can fill it (Volery, 2007).

Markets had the potential to be unrestricted or regulated. In the open market, where
customers of all backgrounds are served or targeted, entrepreneurs can reach a wider
demographic. The opposite is true for a niche market that caters to only one cultural group or
religious sect. Refugees from a single ethnic group may have more commercial success if
they reach out to customers of all backgrounds. At first, the Cuban community in Miami only
catered to its members, but as it branched out into new industries like construction and
fashion, it found a much larger customer base (Fairlie and Meyer, 2021).

An ethnic group's economic integration with others of the same ethnicity is influenced to
some degree by the demand for and supply of the group's resources

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Businesses have a better chance of succeeding and growing if their assets are in line with the
economic climate of their co-ethnic communities, where they are more likely to find a ready
market for their products and services (Hesslein, 2014).

The extent to which these commercial endeavours are successful is heavily influenced by the
cultural differences between the visiting group and the host country. If the gap between
cultures is large enough, there will be a sizable demand for products and services from
minority groups While the market may be large, refugee access to opportunities is always
constrained. When trying to break into the open market, refugees face significant difficulties
because there are already people from the community doing business (Saunders,2021)

The second component of the interactive theory framework concerns the accessibility of local
resources to people of various ethnic backgrounds. Benefiting greatly from the availability of
skilled workers at low wages and high levels of dedication, as well as information about and
access to educational, financial, and business development opportunities, entrepreneurs of
refugees backgrounds can reap many rewards from the ethnic resources in their communities
(Piperopoulos, 2010). The cultural canon and familial ties are the geneses of these materials

There are a variety of reasons why refugees and people from other marginalised groups might
choose to start their businesses. While numerous theories attempt to explain why refugees
embark on entrepreneurial endeavours, it is essential to take into account the specific legal,
environmental, economic, and social circumstances of each case.

2.13. Conclusion and gap analysis

The literature review has provided an understanding of the major theories and points of view
concerning refugee entrepreneurs. The review has demonstrated that citizenship is the legal
bond that exists between a government and an individual, and it provides the individual with
certain political, economic, social, and other rights, as well as the responsibility to the
government, unlike refugees who are devoid of theses rights, rather they have their rights.

The review further emphasised that the refugees in Malawi and other parts of the world face
hostility and abuse, putting their lives and human rights in jeopardy. However, as a means of
survival or out of necessity, some refugees decided to start a business, which helps them to
find better survival means and gain status in society.

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The further review has notably shown that cultural, social, and government policies all play a
role in their entrepreneurship, as evidenced by their success in comparison to the local hosts
of the countries they fled to.

The evaluation of the literature, however, shows several gaps that need to be addressed. For
example, refugees are portrayed as victims in the host country, but there is little literature on
how refugees are parasites in the host country, crimes committed by refugees are not well
recorded, and the status of refugees in many countries is not defined. The review focused on
the entrepreneurship of refugees but did not state explicitly how they succeed legally; all
studies focused on the formal way of success by entrepreneurship even though some can be
drug dealers hiding in a business, some can be informants revealing government secrets and
selling information from their countries, and some can be involved in human trafficking; in
short, the success of refugee entrepreneurship is always the one-sided and beautiful story.
Unlike other researchers, this researcher intends to reveal and close this gap by identifying
the factors that lead to the success of refugees’ entrepreneurship, the research will focus on
how they attain wealth, and it will reveal whether the success of formal entrepreneurship is
based on legit means or its cover-up.

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 CHAPTER 3: RESEARCH APPROACH AND METHODOLOGY
3.1. Introduction
This section provides an overall outline of the research approach, as well as the specifics
relating to the methodology, as well as the details relating to the data that will be collected
and analysed as part of the study. In addition to this, it encapsulated the overarching research
paradigm and the associated tactics. The methodology that will be discussed in general terms
within and referred to as the "conceptual framework for the study"

3.2. CONCEPTUAL FRAMEWORK

The researcher will use the research question, the sub-questions, and the central factors that
arise from the literature review to develop a suitable framework for the study. Because the
overarching question and its related sub-questions informed the literature review, they would
be crucial in determining the overall structure for data collection and analysis.

Before outlining the overall conceptual framework, it is crucial to record the primary
problems that arise from the areas examined in the literature review. The authors, key
concepts, and theories, as well as the primary explanatory terrain, that are central to
understanding the factors that lead refugees to pursue entrepreneurial activities, are
summarised in the following chart. In the country of Malawi.
Figure 3.1. Conceptual Framework

Independent variables

Dependent variable
Cultural

Refugees
23 | P a g e Capital Entrepreneurship
success
 Sources: developed by the researcher

The conceptual framework presented above includes the three main independent variables
that are guided by this research. These variables are culture, capital, and the policies of the
government. The researcher's goal is to determine how these factors can contribute to the
success of the businesses that are started by refugees.

To begin with, the cultural aspect is a very important factor to consider because refugees
come from a variety of different ethnic groups and have a variety of different customs.
Refugees who come from cultures with a strong belief in entrepreneurship are more likely to
be successful compared to refugees who come from cultures with a variety of different
cultural beliefs; consequently, cultures can influence how refugees engage themselves in
entrepreneurship and how success can be achieved.

The other factor is capital, which is necessary for starting a business. While some businesses
are unable to get off the ground or grow because of a lack of capital, some refugees can raise
money from their families, friends in their host countries, and even savings from allowances
earned while living in a refugee camp so that they can use those funds to start their
businesses. This indicates that the success or failure of a business started by a refugee will be
determined, in part, by whether or not they have

It is therefore considered that better laws in the country would allow the coexistence of the
refugees and the locals to mix and do business. As the refugees in the host country the re-
regulated by the government, however in the face of the laws the entrepreneurship of
refugees can either be encouraged or discouraged, it is also another factor that would
influence the success of entrepreneurship among the refugees

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3.3. Research design
4.0.
According to Saunders et al (2016), research methodology refers to techniques and
procedures used to obtain and analyze research data, collected through questionnaires,
observations, interviews and statistical and non-statistical techniques. Research methodology
refers to “a system of beliefs and assumptions about the development of knowledge” The
method explains how research is carried out and the implications of those choices (This
chapter outlines the overall approach to this study. It describes the population and location of
the study, sample size and sampling techniques, research design, data collection, data analysis
and ethical considerations.

3.3.1. Area of Study

This study will focus on refugees who are currently residing in the Dzaleka camp as well as
other refugees who are currently operating businesses in the cities of Lilongwe. The
researcher chose this location because Dzaleka camp is where refugees are located in Malawi,
and because it is simpler to find refugees who are working in the city because there are so
many of them, in contrast to the rural areas where there are fewer refugees.

3.3.2. Participants
In this context, the term "population" refers to all of the people or things that fulfil certain
criteria to be considered members of the larger group (Churchill and Brown, 2019). On the
other hand, Sekeran (2021) defines population as any set of persons or objects that shares at
least one characteristic in common. He goes on to say that any kind of scientific investigation
is aimed at a specific population and that to collect the information needed for analysis,
questionnaires, interview guides, focused group discussion guides, and observation guides are
all distributed to collect that population's responses. The refugees who have started
businesses and are now living in Dzaleka camp as well as those who have started businesses
in Lilongwe make up the study population.

3.3.3. Research Design and Methods

According to Bryman (2015), a research design is a framework that a researcher follows to
guarantee that the information gathered is pertinent to the study being conducted. According
to Oppenheim (2018), the term "research design" refers to the basic blueprint of the study as
well as the logic that lies behind it. It also refers to the factors that will make it possible and
valid to derive additional general conclusions from it. The conceptual framework that forms

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the basis of the plan for the procedure of collecting, measuring, and analysing data is referred
to as the research design (Kothari, 2014). "Research design involves a set of decisions
regarding what topic is to be studied among what population, with what research methods,
and for what purpose," as stated by Babbie (2018). This research will take a descriptive
approach in the form of a survey, and it will make use of both qualitative and quantitative
research methods.

3.4. Research Philosophy

The study will involve the gathering of data, as well as its measurement and interpretation.
The qualitative and quantitative approaches will both be utilised in this project. The ball-
rolling method will be used to identify the sample population for the study. This method will
be used to target refugees at the Dzaleka camp and in the city markets of Lilongwe. The data
from the participants will be collected through the use of questionnaires as well as interviews
with key informants. SPSS will be used to enter the data, and STATA and Microsoft Excel
will be used to analyse the data.

3.4.1. Research Approach

Deductive reasoning and inductive reasoning are the two primary research methods. In the
deductive method, a theory and a hypothesis are formulated, and a research strategy is
developed to test the hypothesis (Saunders et al, 2012). On the other hand, in the inductive
method, data are gathered, and a theory is developed as the result of the analysis of the data
(Saunders, 2016). The inductive methodology will be utilised by the researcher throughout
the course of this study. The researcher has the opportunity to triangulate the primary data,
secondary data, and personal experience in determining what is applicable and why it is
applicable, and to arrive at findings that applied to independent and interdependently
variables thanks to the inductive approach that is used in this reasoning, which allows the
researcher to give subjective justification and reasoning with anecdote evidence from
everyday experience.

3.4.2. Research Strategy

The study will use semi-structured questionnaires and interviews to collect cross-sectional
data. These questionnaires will be structured to meet the study’s main aim and objectives.
The researcher will choose research assistants because of the nature of the population, being a
city, research assistants will be more preferably better to administer and time-saving.

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 3.4.3. The questionnaires
The questionnaire will be constructed in simple language and will be easily interpreted by the
research administrators, to suit all the respondents regardless of their educational
backgrounds.

To understand the patterns of behaviour as they relate to entrepreneurialism, data will be

collected through a survey questionnaire. Survey research is used to gather data from a large
population in a short period (Wagner, Kawulich, Garner, 2018). The questions will be
derived from the core themes or issues in the literature review and are consistent with the
principles of effective survey questionnaire design. This type of data consists of information
obtained by the researcher from study participants or respondents.

A structured survey questionnaire is one of the most used techniques for data collection. Its
design affects the responses as well as the validity and reliability of the research. In the
design of the survey, attention will be focused on information related to the central issues in
the conceptual framework as well as the research questions.

The questionnaire will have sub-headings related to the areas of exploration outlined in the
conceptual model. Under each of these, there are specific questions that relate to the areas of
exploration that are identified. In essence, the questions are directed at building a wider
understanding of the factors that drive entrepreneurship amongst refugees.

To develop a larger appreciation of the drivers of entrepreneurship, the research incorporates

elements related to the obstacles that are encountered during the formation and development
of their businesses.

Interviewees will be provided with a copy of the questionnaire and the questions will be
administered in English by the researcher. The researcher will translate and provide
interpretation into the main language because the target respondents may not be comfortable
with English. Careful attention will be focused on ensuring that the questionnaire serves to
provide a valid level of data for the research purpose and fits the ethical frameworks
established to guide how research is conducted and confidentiality is respected.

The survey questionnaire will be piloted within a small sample of the target population. The
objective of testing will be to check the design and whether the questions work in practice,
also to identify and amend the questions and refine the questionnaire where and if it is
necessary. At least twenty survey questionnaires will be piloted in Dzaleka, the researcher

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amended one question which will be asking two different perceptions and divided it into two
questions.

3.4.4. Case-Based Interviews

Observation and in-depth interviews are mainly used to collect data from ethnographic
research (Wagner et al., 2012). This entailed spending time observing how refugees engage
and deal with their daily business activities as well as gathering a thick layer of information
through in-depth case-based interviews that tracked their overall story. To build a deeper
understanding of the drivers for entrepreneurship, it will be necessary to conduct face-to-face
interviews with key identified respondents. To secure a rich ethnographic understanding of
entrepreneurship, three in-depth interviews will be conducted with entrepreneurs to track
their stories of survival and engaging with self-employment. The language will be used to
conduct the interviews the researcher translated into English. It will be recorded using a voice
recorder.

The use of interviews as a data collection method begins with the assumption that the
participants’ perspectives are meaningful and can be made explicit, and that their
perspectives affect the research. In this will have of data collection, the researcher
interviewed experienced individuals that have gone through different stages of enterprise
development, one of the interviewees started engaging in entrepreneurship activities from
being a street hawker to being an owner of a medium-scale enterprise. The interview will be
conducted in an environment which will be familiar to the individuals so they will be able to
talk about their experiences around the survival of refugees and enterprise development. The
interview will be recorded on a recording device (Mobile phone) and the estimated time of
each interview will be one hour; the researcher informed the participants of both the
recording and the length of the interview. The interviews will be structured according to the
structure outlined in the survey instrument. However, in this instance, the researcher probed
the interviewees for more details.

3.5. Sampling
3.5.1. Sample Size Determination
Because of the nature of this study, the sampling strategy for the survey will be
nonprobability sampling. The sample frame of this study is refugees in Malawi, while the
sample size is owners of enterprises.

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A random sampling of the target population will be not possible because a full list of the
population will be not available and most of the refugees will be not easy to locate or access
through formal channels. In addition, travel to the township-based enterprises of refugees
poses safety issues for the researcher. Because of this, the approach will be convenience and
snowball sampling. Snowball sampling is used when members of a population are difficult to
reach as in this case (Wagner et al., 2016).

About 49 000 refugees are living in Malawi (UNHCR,2022) And half of this number live in
cities and the surrounding areas, Estimating that 2 000 are involved in businesses; it is
difficult to stratify estimate further, so the researcher will use the sample of 100

Table 3..1. Sample size estimate

Total estimated Refugees entrepreneurs Snowballing Sample size

2000 100

The researcher will go with convenience sampling because it offers both lower costs and
fewer logistical headaches than other types of sampling (Wagner et al., 2012). While other
sampling methods, such as probability sampling, won't be possible because it won't be easy to
get a list of all the refugees in Malawi and pick them at random, other sampling methods,
such as convenience sampling, will be.

In terms of the case-based interviews, the approach that will be taken will be to select three
people deliberately as the subjects of the interviews. The researcher focused on people who
arrived in different periods and who operate businesses in various geographic locations as
their subjects of study. This ensured that a balanced distribution of in-depth stories was
provided. In the cases of observation, the researcher spent as much time as was physically
possible at the places of employment of the interviewees and respondents.

3.6. Data Collection methods and tools

One definition of a research instrument is a "tool" that is used to collect research data
(Kumar,2019). The instrument for data collection that the researcher will use is going to be a
combination of questionnaires and interviews. The demographic characteristics of the
participants and the three aims of the study will be the primary focuses of the questionnaires'
two primary divisions, respectively. The researcher decided to collect data through the use of

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questionnaires because this method enables the researcher to collect data from a wider
audience in a shorter amount of time and at a lower cost.

3.6.1. Primary Data

According to Saunders et al. (2016), primary data is information that is gathered specifically
for a research project that is currently being carried out. For this study, primary data will be
collected by collecting it directly from the field. The primary data will be collected through
the use of questionnaires that will be given to those who are participating in the research. The
questionnaire will include both closed questions, in which the respondent will be required to
select the best answer from among the responses, as well as open-ended questions, in which
the participants will be allowed to express their opinions regarding the matter at hand. When
it comes to collecting primary data, questionnaires are the most effective method because
they deliver relatively quick and substantial amounts of data (Saunders et al., 2016). In
addition to this, interviews with key informants will be conducted, with a particular focus on
factors influencing the refugee’s entrepreneurship success in Malawi

3.6.2. Secondary Data

According to Creswell (2013), the collection of secondary data entails the methodical
discovery, localization, and evaluation of documents that contain information pertinent to the
investigation under consideration. Publications such as periodicals, newspapers, and books
are all examples of secondary data sources (Adam and Kamuzora, 2018). As secondary
sources of data, the study will make use of publications found online, as well as books,
journals, and reports. During the course of this study, the readily available documents will be
evaluated in light of the requirements of the study. In addition to that, the researcher will also
speak with other refugees to verify the accuracy of the data.

3.6.7. Pretesting of the data collection tools

According to Saunders et al. (2016), pretesting is the process of refining questionnaires so
that respondents do not face any problems in answering questions and eliminating further
problems in recording data. Pretesting is also used to ensure that there are no problems in
recording data. The primary goal of the questionnaire pre-test is to guarantee that the wording
of the statement, flow of questions, scale suitability measurement, instructions, and
explanations of the questionnaire will all be accurate (Churchill et al., 2017). Churchill et al.
(2017) suggest that one should never begin the process of data collection before first
conducting an adequate pre-test of the instrument. The pre-testing exercise will involve ten

30 | P a g e
different respondents, all of whom will be chosen at random. This will be done to determine
how the respondents will respond to the questionnaire as well as whether or not the questions
will be easy to understand.

3.7. Data Analysis

According to Cooper and Schindler (2015) data analysis involves reducing accumulated data
to a manageable size, developing summaries, looking for patterns and applying statistical
techniques. Data analysis will be conducted through Statistical Package for Social Science
(SPSS), STATA and Microsoft Excel. Data will be presented in tabular and graphical forms.
The tools to be used to analyze all the specific objectives.

3.8. Ethical Considerations

According to Ranjit Kumar (2019), the ethics code of conduct varies from profession to
profession, so it is not possible to provide a universal answer to this question. However, in
research, any dilemma stemming from a moral quandary is a basis for unethical conduct.
There are certain behaviours in research such as causing harm to individuals, breaking
confidentiality, using information improperly and introducing bias, that is considered
unethical in any profession.

Therefore, this study put in place the following criteria to guide the researcher to properly
undertake the study professionally.

The research took into account all ethical issues with prudence and care such as:

i. Respecting the rights of participants, especially the right to be informed, the right to
privacy and the choice to participate.

ii. Avoiding influencing participants’ opinions or attitudes on any issue through direct or
indirect attempts.

iii. Participants’ confidentiality; by not giving out information about general business
activities or providing any information from the research to a third party.

iv. Allowing voluntary responses from willing respondents.

31 | P a g e
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