Immigrants as Entrepreneurs: From Mynmar to Thailand

Transcription

1 Immigrants as Entrepreneurs: From Mynmar to Thailand Pusanisa Thechatakerng Maejo University, T.Nong Harn, Sansai, Chiangmai 50290, Thailand address: ABSTRACT Immigrant Entrepreneurs have been seen as one of countries economics driver. Immigrants from Myanmar, the rate of immigrant is high compare to that of other neighborhood countries e.g. Lao, and Cambodia. This research illustrates the demographical work of a population is an important determinant of entrepreneurship. Therefore, demographical variables as possible determinants of immigrant entrepreneurship are focused. 6 interviewed entrepreneurs limited to entrepreneurs from a single sector of industry, retail shops are involved. The finding shows that the immigrant entrepreneurs can be defined as self-employed businesses with 0-10 employees were dominated by women. The important factors influence immigrants to be entrepreneur are freedom and time managing. Moreover, the result implied that entrepreneurs are driving the new economy as demonstrated in their firms performance. Keywords: Immigrant, entrepreneur, determinants, Thailand, Mynmar 1. INTRODUCTION Entrepreneurs are driving the new economy (John Wiley & Sons, 2009) The rate of entrepreneurship shows considerable variation. This is especially true for immigrant populations. Many immigrants into the Thailand originate from neighborhood countries for eample, Myanmar, lao, and Cambodia are the main patron countries. These immigrants belong to either the first generation (if they themselves have been born elsewhere) or the second generation (if at least one of their parents has been born elsewhere). For immigrants from Myanmar, the rate of immigrant is high compare to that of Lao, and Cambodia (national news bureau of Thailand: NBT, 2011). In addition, immigrants from these countries account for almost 1 million (984,535) which can be divined by countries as follows; 643,095 from Myanmar, 238,586 of Cambodia and 102,854 from Lao (Department of Labour, 2011). Immigration from these countries has a history of more than three decades, yet these immigrants often find themselves in marginal economic positions (Hart, 2011; Hold, 2011; Zotan et al., 2009 Rath, 2006; Mendez & wanatabe, 2005). Chiangmai geographic has a very long broader with Myanmar, then it is very easy to cross both legal and illegal for immigrants. Subsequently, Chiangmai becomes one of the province that immigrants from Myanmar plays the major role in economic driving, around 52,557 legal immigrants work in almost every business sectors, as all business sector still need low level of labour (Department of labour, 2011). Thus, the study focuses on immigrants entrepreneurs from Mynmar. This paper tries to answer 4 research questions as follows; i) What are the demographical characteristics of the

2 Myanmar immigrant groups? ii) Which factors influence an individual s decision to become an entrepreneur? iii) how their businesses performances are and iv) what level of immigrants entrepreneurs satisfaction are? 1.1 Literature review and Theories The main theories in the field of immigrant entrepreneurship started for understanding why immigrants were likely to be self-employed business people. Most literature, based on research in Europe and the United States, mentions that immigrants were more likely to be self-employed than natives (Light, 1972, Bojas, 1986, Waldinger and Aldrich, 1990 as cited in De Raijman, 1996; Hiebert, 2003; Light and Sanchez, 1987 as cited in Kim, 1998; Min & Bozorgmehr, 2003; The Carnegie Endowment, 1997). Researchers have developed various conceptual frameworks to account for this phenomenon: why immigrants tend towards self-employment. However, according to the literature (Hiebert, 2003; Raijman & Tienda, 2000), it was difficult to generalise about entrepreneurial behaviour as most studies have been based on single groups. That was to say, most studies on this topic were case studies focusing on a particular immigrant or minority group (Min & Bozorgmehr, 2000, p. 2). Yet, as the ultimate aim of this study was to eplain the phenomenon of entrepreneurship among Lao, Cambodia, Mynmar in Thailand. The theoretical framework for this study was primarily drawn from previous research conducted on the social and economic adaptation of immigrants by European and American scholars. Unlike traditional immigrant-receiving countries such as the United States, Thailand has a small economy and a small population. Therefore it would be interesting to investigate what kinds of theories were similarly applicable to Thai immigrant businesses. A. Middleman minority theory This concept refers to the minority groups that have played an intermediary economic role between producers of the dominant group and minority customers in different societies (Min & Bozorgmehr, 2003). In Thailand it is widely acknowledged that the status gap between Thai and hill tribe people the indigenous people is notable in terms of various levels of living standard such as average household income although the gap between the incomes of Thai and hill tribe people has been closing dramatically (Stokes & Collins, 2007). Therefore it would be worth investigating whether some immigrant ethnic groups are playing the role of middleman minority in Thai society in the future. B. Labour disadvantage theory According to this theory (Min & Bozorgmehr, 2003), immigrants eperience disadvantages related to employment in the primary labour market, compared to the native born. Without a doubt, the language barrier is the most visible disadvantage to some immigrant groups. New immigrants who are not fluent in the spoken language of the host society are limited in their ability to use the skills acquired in their country of origin. As a result, according to the theory, there is often no other option for some immigrants but to choose self- employment for their economic survival and social mobility. In other words entrepreneurship is the alternative means of economic advancement for marginalised groups (Hiebert, 2003). C. Ethnic enclave economy theory The term ethnic enclave refers to an immigrant enclave where immigrant workers are employed in the enterprises owned by the members of same ethnicity (Lee, 2003). Therefore, the enclave theory concentrates on geographically self contained ethnic communities within metropolitan areas (Butler & Greene, 1997). D. Interactive theory

3 The Interactive Theory approach suggests that ethnic business proliferates in industries where there is a congruence between the demands of the economic environment and the informal resources of the ethnic population (Waldinger, 1986, as cited in Agrawal & Chavan, 1997). These referred theories would be applied to this study. 1.2 Methodology Sample selection The eploratory research was carried out between September 2011 and August 2012 at Papoa community, Chiangmai which are densely populated. The population would be immigrants from Myanmar which were running their businesses. The sampling procedure aimed to interview 6 entrepreneurs from Myanmar immigrant group. Interviews would be limited to entrepreneurs from a single sector of industry; retail sector, as the share of immigrant entrepreneurs was relatively high in this sector (Van den Tillaart, 2001). A two-step sampling procedure has been applied. In the first step, neighborhoods with a relatively high density of immigrants would be selected. Most of these neighborhoods were located in Wat Papoa, Muang, Chiangmai. Net, these neighborhoods would be visited and retail stores would be selected that appeared to be owned by individuals from a relevant immigrant group. Data collection methods One of my team was a Myanmar people who involve in Thai business for more than 3 years, and she knew very well about immigrant entrepreneurs in Chiangmai. As I have previously mentioned in the sample sector how to approach the immigrants entrepreneur, I, then interviewed them with interview form and if the immigrant entrepreneur could not understand Thai language well, the Myanmar assistant assisted me in this case. Methods of data analysis It was hard to find all data from administrative record. One possible data source was documentary analysis which provides more information about immigrant entrepreneur in Thailand. Source of documentary review came from report from Department of Labour and some research work in Thailand and similar research contet from developed and developing country. Validity Several validity issues are inherent within this paper. The first issue is in the small sample size being used. We occupy only the owner of retail businesses in the Papoa Community. This may limited the generalizability of the findings. 1.3 Results The results found in this part aim to demonstrate the demographical characteristics of the Thai immigrant entrepreneurs, factors influence an individual s decision to become an

4 entrepreneur, and businesses performance of entrepreneurs Social Characteristics & Back ground of Immigrant Entrepreneurs, and Characteristics of Businesses Characteristics & Back ground of Immigrant Entrepreneurs a. Characteristics of Immigrant Entrepreneurs Immigrant entrepreneurs have had very close age gaps, They are between years old, and they were in married status, just one immigrant was still be single. They were married Buddhism with between 2 3 children and they didn t have their own house. The later could be assume that they didn t have the right by Thai law to buy for their own house. They didn t have much education, in the level between primary and secondary school. Table 1 Characteristics & Back ground of Immigrant Entrepreneurs Name Age Education Status Chi Religion Living ldren Mrs. A 39 Primary Married 2 Buddhism Rent school Ms. B 35 - single Buddhism Rent Mrs.C 38 - Married 2 Buddhism Rent Mrs.D 40 Secondary Married 3 Buddhism Rent school Mrs.E 40 Primary Married 2 Buddhism Own home school Mrs.F 43 - Married 3 Buddhism Rent b. Motivation to shift from home to Chiangmai The motivation to shift from home to Chiangmai, Mrs.A. was cleared by her eplanation. She said that I just want to work and to earn money. I can work better here than my country, as well as Ms.B, Mrs.C, and Mrs.F. Whereas, Mrs.D stated, Life is get better here than my country, and I want to stay in another country. Mrs.E eplained the motivation to shift from home to Chiangmai that I just follow my husband where he goes I will be there. We summarize here that opportunity for their better life bring them to Chiangmai. Table 2. Motivation to shift from home to Chiangmai Name Entrepreneurs Mrs. A Ms. B Mrs.C Mrs.D Mrs.E Mrs.F of Reason from home to Chiangmai Working and earning. I work here. I can earn more money than in my country. I want to stay in another country. I follow my husband. I can earn more money and good living Types and Characteristics of Businesses a. Business background 4 Entrepreneurs from 6 have not had eperience before running their business. I never do business before but I need to earn more money to support my own family. In the same way as Mrs. C I need to maintain my family, otherwise how can we survive. Our family cannot survive if I worked as an employee. I decided to start up my own business because I want to have my own business noted by Mrs.E. While Ms. B told us that somebody suggested her to do some business that was while she started up her own business. For the rest of 2 entrepreneurs, they told us that they have had eperience to run their business before, so it was

5 not so hard for them to establish their own business. Table 3 Business background Name of owner Eperience in No eperience & reason to set up similar business Mrs.A No No, I need to earn more money to support my own family. Then I decided to start up my own business. Ms. B No No, somebody suggested me to set up own business. Mrs. C No, I need to maintain my family. Mrs.D Yes Mrs.E No No, I want to have my own business Mrs.F Yes b. Employment opportunity Entrepreneurs before running their own business, the eperience was very important. The target entrepreneurs here have been employed before thinking to have their own business such Almost of them have obtained under standard payment by Thai labour law. Ecept, one entrepreneur, she never works with others because her husband didn t allow her to work but start up her own business. Table 4 Employment opportunity Name owner of been employed by others Yes Standard payment yes no (try to get employment) Mrs.A Ms.B Mrs.C Mrs.D Mrs.E Mrs.F no c. Reason to be Entrepreneur Entrepreneurs like to be free, manage their own time and job (Thechatakerng, 2009; Collin & Moore, 1964) as the finding indicated in this study. Mrs.A, B, C claimed that I don t like to work for other people, I want to be free and do whatever I want to do. Whereas, Mrs.D and F clearly eplained I can earn more money, if I run my own business. However, Mrs.E has her own reason that My husband doesn t want me to work with others, but I still want to do something to earn money then it s a good choice to be entrepreneur. Table 5 Reason to be Entrepreneur Mrs.A I don t like other people to blame me in whatever I ve done. I want to do whatever I want to do. Ms.B To be entrepreneur is better than being employee. Moreover, I can earn more money than being employed. Mrs.C I don t like to be employed by other. I like to be entrepreneur. Mrs. D I can earn more money than being employed. Mrs.E My husband doesn t want me to work with others, and then it s a good choice to be entrepreneur. Mrs.F I can earn more money than be employed.

6 d. Characteristics of Businesses Immigrant entrepreneurs businesses have had both in the period that we interpreted as a young business and eperienced firms 1 (Thechatakerng & Rialp, 2005). Younger firm in this case belong to Ms. B, Mrs.E, Mrs.F which their businesses have established less than 4 years. In contrast with eperienced firms of entrepreneur, Mrs.A, Mrs.C and Mrs.E, which have established more than 4 years. The findings emphasized that they were micro businesses, where have had between 0 4 employees. We could define as self-employ. For types of business, the results showed that they were retail businesses. We concluded that they were in both young and eperienced businesses. Their businesses were micro 2 within the first generation. Table 6 Characteristics of Businesses Name Year of Types of Employee Investment Generation establish business Full time (Thai Baht) Mrs.A 2005 Retail <10,000 1 (7 yrs) Ms. B 2012 Retail <10,000 1 Mrs.C 2005 Retail <10,000 1 (7 yrs) Mrs.D 2010 retail 4 >50, ,000 1 (2 yrs.) Mrs.E 2006 Retail >50, ,000 1 (6 yrs.) Mrs.F 2009 (4 yrs.) Retail >50, ,000 1 e. Income support Almost of immigrant entrepreneurs were supported by their family. Just two entrepreneurs, Ms.B and Mrs.F were not suppoeted by their family but their own. Obviously, after initial stages of start-up, there were no supported from other sources, we interpreted as surviving by their own businesses. Table 7 Income support Entrepreneur Initial stage Supporter During running biz No Family No Mrs.A Ms. B Mrs. C Mrs. D Mrs.E Mrs.F Business performance and satisfaction 1 Firms have established for 4 or less than 4 years, define as young firm, but more than 4 years as eperienced firms (Thechatakerng & Rialp, 2005). 2 Size of business, firm with less than 10 or 10 employees as micro-business, and more than 10 to 50 employees as small business (Thechatakerng, 2009).

7 Business performance & Satisfaction a. Business performance For business performance of entrepreneurs, Majority of them have earned around Thai baht >100, ,000. Two of them, Ms.B and Mrs.D have earned around Thai Baht over 400,000 and Mrs.D around, Thai Baht >200, ,000. They eplained that they were happy with the earning here in Thailand which were better than the earning in their country. We interpreted as their businesses performances were in good situation. Table 8 Business performance Name of Earning/year (Baht) Entrepreneur < 100,000 >100, ,000 >200, ,000 >300, ,000 Over 400,000 Mrs.A Ms.B Mrs. C Mrs. D Mrs.E Mrs.F b. Satisfaction of outcome from business performance I interviewed their satisfaction from their businesses performance three of them responded in the medium level. Whereas, Mrs.D, Mrs.E, Mrs.F were pleased with their performances. Mrs.D uttered I m very much satisfied with my business and the growth of my business, as well as Mrs.E, and Mrs. whom were very much satisfied of their performances. I summarized that most of immigrant entrepreneurs were in good situation about their businesses performance. Table 9 Satisfaction of outcome from business performance Entrepreneurs yes no Description Mrs.A Medium Ms.B Medium Mrs.C Medium Mrs.D Good Mrs.E Good Mrs.F Good 2. Conclusion, Implication and future research This paper discovered that the results of the study point out the necessary to pay greater attention to how immigrants become entrepreneurs in regional development like Thailand. Entrepreneurs respond their new opportunities for surviving for themselves and their family. The results state that most of immigrant entrepreneurs are regarded as satisfaction due to their life in Chiangmai. The performance indicated the positive sign by profit gaining from the study period. It was consistent with the argument by Wood (2005) that the entrepreneur knows what will occur if he acts as he chooses, To the entrepreneur, there is no risk: The entrepreneur sees only profits. Moreover, the concept of ethnic enclaves falls supported the result, that immigrant groups who concentrated in specific spatial locations and organised a variety of enterprises serving their own ethnic market and/or the general population. Their basic character was that a significant proportion of the immigrant labour force works in enterprises owned by other immigrants (Barrett et al., 1996). For future research, a significant contribution aims to eplain immigrant entrepreneurs in

8 developed countries (Thechatakerng, 2012), but does not provide data to assess immigrant entrepreneurs in Thailand. This study was limited only Papoa community, it should be more interesting to etend to other area, or to other countries, and carry out the comparative studies to indentify immigrant entrepreneurs prototype. In addition, other area of minority entrepreneurs and also should allow conclusion to be depicted for Thai entrepreneurs policy towards small and micro-enterprises which have played an important role in driving Thai economy. 3. REFERENCES Agrawal, R. K., & Chavan, M. (1997). Entrepreneurship development amongst the ethnic community in Australia. Retrieved June 8, 2005, from Barrett, G.A., T.P. Jones and D. McEvoy (1996), Ethnic Minority Business: Theoretical Discourse in Britain and North America, Urban Studies, 33 (4-5), pp Bosma, N., M. van Praag and G. de Wit (2000). Determinants of successful entrepreneurship, Research Report 0002, Zoetermeer: EIM. Bosma, N., G. de Wit and M. Carree (2003). Modelling entrepreneurship: unifying the equilib-rium and entry/eit approach, Small Business Economics, forthcoming. Chou, L. (2000). Chinese immigrants in New Zealand society: a study of migrant acculturation and the effects of communication and multicultural public relations. Unpublished M.A, Auckland University of Technology, Auckland. Clark, K., and S. Drinkwater (2000). Pushed Out of Pulled In? Self-Employment Amoung Ethnic Minorities in England and Wales, Labour Economics, 7 (5). Collins, J. (2008). Immigrant entrepreneurs in Australia: Regulations and responses, in OLIVEIRA, Catarina Reis and RATH, Jan (eds.), Migrações Journal - Special Issue on ImmigrantEntrepreneurship, October 2008, n. 3, Lisbon: ACIDI, pp Herman, T.R. & Smith, R.L. (2009). IMMIGRANT, INC.: Why Immigrant Entrepreneurs Are Driving the New Economy (And How They Will Save the American Worker. John Wiley & Sons, Inc. USA. Le, A. T. (2000). The determinants of immigrant self-employment in Australia. The International Migration Review, 34(1), 183. Lee, J.S. (2008). Why do Asian immigrants become entrepreneurs? The case of Korean self-employed immigrants in New Zealand, a Master Thesis, Auckland University of Technology. Rath, J. (2000). Immigrant businesses: the economic, political and social environment, Basing-stoke: Macmillan. Thechatakerng, P. (2009). Determinants of Entrepreneur, EDP workshop, Universitat Autonoma de Barcelona, Barcelona, Spain. Thechatakerng, S., & Rialp, J. (2005). When They Go Together: Alliances Implementing by Thai Firms, Paper Presented in EURAM Conference at TUM Business School, Munich, Germany, Formally Published on the Web Thechatakerng, P. (2012). Thai Immigrants Entrepreneurs in new Zealand, Contemporary Research on E-business Technology and Strategy Communications in Computer and Information Science 2012, pp Wood. J.S. (2005). The Development and Present State of the Theory of Entrepreneurship in Product and Assest Markets by Knight, Hayek, Schumpeter, Mises, Kirzner, Shackle, and, Lachmann, Paper presented in Austrian Scholars Conference.