Unfolding the Dynamics of Refugees’ Entrepreneurial Journey in the Aftermath of Forced Displacement

Despite their detrimental circumstances, the number of refugee-owned businesses is on the rise—a situation referred to as “the paradox of refugee entrepreneurship.” However, a key question is how refugees, having undergone extreme life disruption due to war, conflict, and forced displacement, fare as entrepreneurs in their host country. Extant studies do not address this question, as they primarily focus on factors determining refugees’ entrepreneurial entry. We extend current research, which predominantly focuses on the antecedents of refugee entrepreneurship, with a processual approach that captures refugees’ entrepreneurial journey. Drawing on inductive theory-building analysis and extensive data gathered from 40 in-depth interviews with 21 recently arrived Syrians in Sweden, our dynamic model provides a thorough examination of the tactics and procedures that refugees employ to create and grow their businesses. This research contributes to the advancement of existing theory by introducing a comprehensive model that delves into the intricacies of refugee entrepreneurship, outlining the distinct phases, detailing the underlying mechanisms for each phase, and identifying the critical factors that drive progress from one stage to the next. Our findings offer valuable insights for initiatives seeking to provide support and encouragement to refugee entrepreneurs, thereby fostering their success and empowering them to reach their full potential.