The economic contribution of immigrants

Historically and in the modern-day universe, immigrants play a important function in the development of national entrepreneurial activity of host states. They display a thrust to construct better lives through their willingness to move on their ain resources and take charge of their ain fiscal fate ( Hunter, 2007 ) . They use their traditional place state values to ease their success in entrepreneurial ventures, normally called the transplanted cultural thesis ( Li, 1993 ) .

Migrant concern proprietors are said to make the necessary resources for sustainable local development such as employment and apprenticeship places, every bit good as income for metropoliss and states. Beyond this economic part, they besides create a diverse supply of goods and services, which upgrades the attraction of vicinities both for dwellers and visitants. ( Borges-Mendez et al. , 2005 ) . Furthermore, different surveies show that migrator enterprisers besides secure the local supply constructions in marginalized countries and therewith better the life quality of their dwellers ( Borges-Mendez et al. , 2005 ) .

Migration of people from the developing universe to the developed universe has become an issue deriving the attending of concerned people in all parts of the universe due to the function it is believed drama in the holistic development of states in the underdeveloped universe. The earnestness of the migration from less developed states to the developed universe rests on the function it plays in weakening critical systems in the states from which these migrators originate. Nonetheless there is small done about migration from one state to another which are both in developing county class ( Salifu, 2007 ) .

Migration of enterpriser is some sort of encephalon drains like the skilled worker and professions migration. Entrepreneurs are of import in developing states for SME growing as an economic system advancement motors but their importance are non governmentally good considered in these states. These states purpose in prevent of losing their enterprisers as their societal capitals and even pulling the foreign enterprisers can authorise their strength in advancement. Their success can authorise their coveted effects on the host societies and even can assist the beginning states by their remittals.

Although there are long clip entrepreneurship have been studied, no concluding theoretical accounts or factors which are contributed to the enterprisers ‘ success are found. Some research workers consider limited factors and analyze their influence in different groups. In this survey we will unite the factors they considered and garner the factors in relation by success of our society of survey. In this manner we will present the theoretical account of immigrant enterprisers ‘ success from our point of position.

Therefore, here are still spreads in middling of entrepreneurship and migration surveies. For this intent we want to analyze this issue in different range. In this survey we will analyze the factors which influence the migration and success of immigrant enterprisers of Iran in Malaysia. Analyzing different groups of enterprisers in different state of affairss and environments can assist in better apprehension of this topic. This research can assist in better apprehension of migration and entrepreneurship phenomena both.

1.2 Background of the Study

Entrepreneurship is a worldwide phenomenon that has manifested itself in the growing of little to medium concern since the 1950s. Because this survey ‘s focal point on different sub-topics as migration, enterpriser ‘s migration, Persian enterprisers, Persian migrators, Persian enterpriser migrator, in-migration in Malaysia, entrepreneurship in Malaysia, foreign concern proprietors in Malaysia, entrepreneurial motivations, barriers and success, the related surveies will see them diffusely in chapter two. In brief… .while Khosravi ( 1999 ) did a survey about Persians in Sweden and besides Persian enterprisers in Stockholm. Entezarkheir ( 2005 ) survey Persian elites migration to Canada grounds, most of surveies about Persians are restricted to the USA.

1.3 Problem Statement

Malaysia as one the most progressed state of developing states is a multi cultural state. Although entrepreneurial immigrants are non a new phenomenon in Malaysia, there is still small published research about them, particularly about the immigrant enterprisers who are non belong to the chief minorities like Malayan Chinese and Indians, and who have non citizenship. During the last decennary the Numberss of travelers from Iran to Malaysia are increasing quickly specially in the last 5 old ages ( Ahmad Azmi, 2009 ) . Iranians are the first group in second-home-investing citizenship plan of Malaysia in 2009 and the figure of companies which established by them are increasing quickly ( Malaysia My Second Home statistics, 2009 ) .

On the other manus, although Iranians are one the most of import enterpriser minority in developed and traditional host state like in the USA ( Bazargan, 2000 ) , there are small bookmans which study Persian enterprisers who live outside their state. There are a few published surveies about the Persian enterprisers by and large and most researches in this subject are presented in Farsi ( Iran functionary linguistic communication ) . Therefore Persian immigrants as cultural enterprisers are still less known.

By uniting the in-migration survey and entrepreneurial concern creative activity cross boundary line, the inquiry of why the enterprisers decide to go forth from their place states and create concern venture abroad, every bit good as why Persian enterprisers choose Malaysia as the host state, go a subject to analyze in this research.

Another portion of our research is concentrating on the motives and barriers immigrant enterprisers face to get down and run their concern in Malaysia and eventually their success theoretical account. There are some surveies about entrepreneurial motives and barriers. In this thesis we will unite these factors and analyze them in our research mark group i.e. Persian enterprisers in Malaysia.

Research Aims

In this survey, we want to happen out the grounds that cause enterprisers to take to migrate to other states, their motivations and barriers to get down and spread out their concern and the factors contribute to their success. In this manner, we line out our chief aims as holla:

To happen Persian enterprisers ‘ Push-Pull migration grounds to Malaysia.

To happen the factors actuating Persian enterprisers to set up their concern in Malaysia.

To happen the factors that hinder Persian immigrant entrepreneurial activity in Malaysia in their start up stage and after that.

To happen the factors that contribute Iranian immigrant enterprisers in Malaysia to success.

1.5 Research Questions

To bring forth the appropriate responses that will reply to the intent of the survey, the following cardinal research inquiries are used to develop the instrument:

1. What is Persian enterprisers ‘ Push-Pull migration theoretical account to Malaysia?

2. What factors motivate Persian immigrants to be enterprisers in Malaysia?

3. What are the barriers in forepart of Persian immigrant enterprisers in Malaysia?

4. What factors contribute to the success of Persian immigrant enterprisers in Malaysia?

1.6 Conceptual Model

This survey is a combination of two major topic ; migration and entrepreneurship. Harmonizing to the most researches about migration and World Bank studies, the best theory to explicate the multi-aspect migration grounds is the Migration Push-Pull theoretical account. In add-on, in the entrepreneurial motivations, barriers and success factors subdivision, factors considered by other bookmans will be gathered and combined to be examined in our society.

In this survey, both the qualitative and quantitative attacks will be used in a manner that first, the subscriber factors in migration and entrepreneurial activities represented by other surveies will be all gathered. Later, appropriate factors for a pilot survey will be chosen and assessed by a set of interviews and eventually the most of import factors will be obtained by agencies of statistics analysis of the inquirers.

1.7 Scopes of Study

A major boundary line of this survey is that it is restricted to Persian enterprisers who live in Malaysia and will non be generalized to include enterprisers of other cultural groups or other immigrant population groups. Furthermore, the consequences of this survey are non traveling to include other Persian enterprisers who are settled elsewhere in other states. Although there are many Persian migrators who are settled in states like the USA, Canada, Australia, United Arab Emirates, Germany, Sweden and etc. , these groups of people will non be a portion of this survey. This research is concerned merely about Persians who are settled in the capital metropolis and southern portion of the Malaysia viz. Kuala Lumpur and Johor Bahru.

Sing the current political state of affairss of Iran every bit good as Persian cultural base, the research worker expects Persian immigrants non to be willing to go to the interview or make fulling the inquirer which may necessitate face to confront communicating and developing common trust. Therefore, a little figure of samples and some un-honest replies can be expected.

The research worker is non supported financially by any organisation, authorities grant, school, or bureau that has an involvement in the result of the research. As a consequence, research worker ‘s fund for this undertaking is limited and therefore the resources were unequal to spread out the survey over other mark groups or countries. The research worker did non use anyone to assist in carry oning the research, doing the survey limited to bing clip frame and continuance for the decision of this survey.

1.8 Significance of Study

This survey, by concentrating on immigrant enterprisers in developing states, could assist in better apprehension of both migration and entrepreneurship phenomena. Our research is traveling to research the nexus between in-migration and entrepreneurship from a different point of position and a different range as explained below.

First, this survey has a different range compared to other researches in this country. This survey is about a group of immigrant enterprisers in a underdeveloped state. The bulk of bing research within cultural and immigrant entrepreneurship has been conducted in America with American illustrations. After that most researches are done in other developed states which are traditionally considered as host states for immigrants, like Canada, Australia, West Europe and even New Zealand which are among the few states in the universe acknowledging immigrants for lasting colony. Therefore, it would be good if the consequences could be verified or refuted in other states as good, and in that manner we could better understand the theoretical model of the issue ( Brundin, et Al. 2001 ) . Although most of the researches in this field see the ground of migration flow from the developing states to the developed states, we will detect these phenomena between two developing states.

Second, in this survey we follow a different point of position in the sense that most researches in the entrepreneurial activities of migrations are about the motivations and barriers which conduct or even coerce them to self-employee. Many theories such as the Immigrant Adaptation Theory, the Immigrant and Ethnic Entrepreneurship Theory, Labour Disadvantage Theory, Ethnic Enclave Economy Theory, Middleman Theory, etc. survey and uncover the grounds and procedure, which conduct to the entrepreneurships. Immigrants, incapable of happening work in the general Labour market, or loath in accepting work options offered by the general Labour market, or merely unwilling to unify with aliens choose to be employed or self-employed in the cultural economic system of their assembly ( Light, 2004 ) . The treatments on the little concern proprietors ‘ motivations to travel their concern or set up a new concern abroad are limited. Therefore, in the current survey, which will be done in one of the development states, certain grounds will be derived as why prospective or presently enterprisers decide to immigrate and get down their concerns abroad of their origin state and what are their motivations and hinder in this procedure.

Third, although entrepreneurial survey has been long journey, there are small surveies about Persian minority and other minorities inside Malaysia. The migration factors were non studied for the group of enterprisers who came to Malaysia for inaugural grounds. Our survey ‘s focal point is entrepreneurial activities of a little minority who have non Citizenship or even Permanent Residency as Malaysian hard residence regulations ; they feel incapable of acquiring it, while it is personally an of import demand for them and fundamentally an of import advantage for their concern. Therefore, their motivations and hinders are different from others who are studied in other researches and this brand this mark worth analyzing.

Finally ; entrepreneurship research has a long history and scholarly work on entrepreneurship that dates back to 1776, when Adam Smith concluded that entrepreneurship was a consequence of an person ‘s chase of self involvement for his or her ain economic addition ( N. Smith and Miner, 1985 ) . Though there is no concluding success theoretical account, or even conducive factors for enterprisers ‘ success yet. Therefore, more survey must be done in the enterprisers ‘ success and different perusal can assist in better apprehension of this topic.

As a practical research, other than a part to the cognition, empirical consequences of this survey could assist different addressee groups as holla:

Persian enterprisers who are willing to immigrate

to cognize the state of affairs and subscriber factors of making concern abroad better and acquire a better vision about it ; particularly in Malaysia.

Persian entrepreneurial politician

to diminish the factors which push entrepreneurs out of Iran, who are the of import sicio- humanity capitals of each state.

Malayan politician

to alter the enterprisers to normal immigrants ratio by increasing the attraction of Malaysia for the foreign investors and enterprisers in term of ‘migration direction ‘ .


to cognize the jobs of immigrant concern proprietors better and assist them in set uping and running stage.

1.9 Definition of Concepts

Below are some operational definitions of some of the footings that are used in this survey.

Immigrants and Foreigners:

In sociology, an immigrant is defined as an person who changes his or her topographic point of abode from one geographically bounded country to another ; in fortunes which generate a societal, political or administrative reorganisation displacement for the immigrant. Peoples traveling from one town, state or part to another are internal immigrants while people traveling from one state to another are international immigrants ( Arandia, 2008 ) .

Sing that this thesis analyzes the entrepreneurial activity of international immigrants, I will hereon utilize the term ‘immigrant ‘ and ‘migrant’to refer merely to international immigrants.

On the other manus, the legal term alien allows us to separate between persons who have the host state citizenship from those who do non. In Malaysia, resident alien refers to the foreign-born who have lived in the state lawfully for more than three months, as lasting or short-run abode excepting those who have acquired citizenship and therefore became Malayan like Chinese and Indian Minorities of Malaysia ( Hirschman, 1987 ; Malaysian Torahs ) .

In amount, the term ethnics or immigrants includes the whole population of the nonnative or every races except Malay who live in Malaysia, irrespective of their citizenship, whereas aliens are international migrators who live in Malaysia and do non hold Malayan citizenship. Malaysia ‘s population comprises many cultural groups and Malayan citizenship is normally granted by lex soli and naturalisation. lex dirt besides known as birthright citizenship, is a right by which nationality or citizenship can be recognized to any single Born in the district of the related province ( Andrew, 2002 ; Malaysian Torahs ) .

To do a difference by other races like Malayan Chinese or Indians who has the primary citizenship, in this survey I will utilize the term immigrants merely for the alien ( and foreign-owned houses ) to mention to who live in Malaysia but have non acquired Malayan citizenship.

Entrepreneurs and the Freelance:

Harmonizing to Long ( 1983 ) , the definition of entrepreneurship can be traced back more than 800 old ages ago to the Gallic word ‘entreprendre ‘ which means ‘to do something ‘ . Then, in 1730, Cantillion used the term to depict a ego employed individual who has ‘risk taking tolerance ‘ , a characteristic which is believed to be critical in supplying for one ‘s ain well being ( Outcalt, 2000 ) .

From Cantillon ( ca. 1730 ) to Gartner ( 1988 ) the construct of entrepreneurship has been widely discussed in the literature. Due to the proliferation of theories and taxonomies, which frequently conflict and overlap, it has been claimed that specifying the constructs of enterpriser and entrepreneurship is one of the most hard undertakings faced by research workers working in the field ( Parker, 2004 ) . Harmonizing to Zimmere and Sacrborough ( 1998 ) , an enterpriser is an person who creates new concerns, mitigate hazard and uncertainness in order to do net income from the chances and resources available within its range.

The construct of self-employment can besides be controversial. The freelance are frequently described as persons who do non gain a wage by working for others, but who earn an income by running a concern at their ain hazard. In add-on, there are some gray countries between paid employment and self-employment. For case, some workers classified as freelance are in fact employees who work for one client house. This is typical of the building industry where workers are besides known as “ falsely freelance. ” Finally, some other of the gray countries between employment and self-employment include free-lances, housewifes, franchise holders and members of worker co-ops.

In this thesis we study the Persian concern proprietors who set up and run their concern in Malaysia entirely or with some other spouses. Therefore both in the empirical trials and at the conceptual degree, I will utilize enterpriser and freelance as equivalent word to mention to people who earn a life by working on their ain.

Immigrant- and Ethnic-entrepreneurs:

In the literature covering with foreign concern proprietors, the footings migrant, immigrant or cultural enterprisers are used in a instead alternate mode. Following the American research tradition, there is a little penchant for the construct cultural enterpriser ( Tolciu, 2010 ) . However, despite its popularity, this term has several defects: foremost, as Rath and Kloosterman ( Rath and Kloosterman, 2000 ) point out, the label cultural implicates a strong engagement of the concern proprietor in the cultural community, which is, nevertheless, non the instance for all enterprisers. In the research workers ‘ sentiment, when utilizing this construct it is non clear whether one refers to the beginnings of the enterpriser or to his direction schemes. Furthermore, the term cultural presupposes a set of common values stemming from a shared cultural background. Second, in Malaysia, the term ethnic is normally used for chief minorities of Malaysia who even have citizenship ( Chinese and Indians of Malaysia ) , either in the academic or public discourse. Following these considerations, for this analysis we use the more impersonal term migratory enterpriser ( Hirschman, 1987 ) .

Developing states:

There is no individual internationally recognized definition of developed and developing state and the degrees of development may change widely within alleged developing states. Developing state is a term largely used to depict a state with a low degree of stuff well being. ( Sullivan and Steven, 2003 ) . Other than international bureaus like the United Nations and the World Bank, Jaafar M, ( Jaafar M, etal, 2005 ) and Esfahani ( Esfahani, 2008 ) refered to Iran and Malaysia as a developing state in their researches.


Iran has long served as a link for trade and civilization between East and West. As the largest and most thickly settled state of the Middle E, it harbours in its 1,648,000 square-kilometres a broad mixture of climes, landscapes, and ethnicities. It was one of the universe ‘s oldest uninterrupted major civilisations ( Dastmalchian, 2001 ) . In this survey, Iran is the beginning or beginning state which migration to other states is originated from ( Salifu, 2007 ) .


Malaysia is a state in the Southeast Asia, which since its independency has had one of the best economic records in Asia. Malaysia ‘s Gross Domestic Product ( GDP ) is turning with an mean 6.5 % for the first 50 old ages of independency. Traditionally the economic system of the state has been fuelled by its natural resources, but is now besides spread outing in the sectors of scientific discipline, commercialism, touristry, and medical touristry ( Hill, 2005 ) . In this survey Malaysia, is the host or finish state which migration ends or migrators are settled into ( Salifu, 2007 ) .