Muslim Entrepreneurship in Ireland
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Transcript of Muslim Entrepreneurship in Ireland
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MUSLIM ENTREPRENEURSHIP
IN IRELAND
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Muslimentrepeneurship
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Whats entrepreneurship?
Entrepreneurship means more to createemployment opportunities, its also theway to contribute to well-being of thecommunity.
Several studies have highlighted thatmigration provides many benefits andcontributes to economic growth.
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Ethnic participation is increasing in terms ofself-employment so they play a importantrole in the establishment of small businessenterprises.
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Perfomance conditions for migrantentrepreneurs: (opportunities and barriers)
Structural factors: social exclusion, discrimination
Cultural factors: skills, cultural features, personal motivation
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Principal challenges facing ethnicentrepreneur:
Access to capital
Mainstream Network Connections
Over-Dependence on Ethnic Bussiness Network
Exclusive Focus on Ethnic Customers
Concentration on Marginal Economic Success
Lack of Managerial Experience
Lack of Familiarity with Institutional and Legal Environment
Spatial Concentration of Ethnic Enterprises in Urban Environments
Societal Hostility
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Islam and Entrepreneurship
In Muslim world the Shariah Law regulatethe behaviour in any ambit like social oreconomical.
Religion influences in entrepreneurship.
Vargas-Hernandez and Noruri (2010) explained that entrepreneurship is part of Islamic culture
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Shariah Law finance
Has the same purpose as conventionalbanking expect that it operates with the rules of Shariah, know as Fiqh.
Shariah has its own financing bussiness rules:
1-Musharak
2-Mudarabah
3-Murabaha
4-Ijara
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Webers Theory
He is sure that Protestant Religion is very
link to entrepreneurialism.
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Carswell and Rolland
The Muslim comunity has a great propensity
for entrepreneurship compared to the white
indigenous population.
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Female Entrepreneurs in Islam
Country Enterprise Survey (2003-2006) regarding the occurence of female business ownership.
31
2420
20
13
Noth Amrica
Europe andCentral Asia
East Asia
Latin America
Middle Easternand NorthAfricancountries
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Mclntosh and Islam (2010) hyphotheses to discover more about Female Muslim access to business.
1-Female entrepreneurs who demonstrate a commitment to Islam by wearing the hijab are more likely to gain access to business networks.
2-Female entrepreneurs with a supportive family.
3.Female entrepreneurs with higher human capital.
4. Female entrepreneurs in non-traditional business are more likely to have above average growth aspirations than women in traditional business.
5.Female entrepreneurs with high leves of human capital are more likely to secure funding from Islamic banks.
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Muslim entrepeneurship in Ireland
Foreign nationals constitute 11% of Irish population.
Almost all Muslims hadnt access to Sharian Law banking facilities in Ireland, because Shariah financial products arent available in Western Countries.
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Muslims in Ireland
First Muslims arrived in the early 1950s
Initially for education purpuse Medicine at the Royal College of Surgeons in Dublin
Job opportunities, Muslim businessmen andtraders from U.K. first Muslim community began to slowly evolve
Census in 1991: 3.873
Muslim refugeesfrom
Bosnia, Kosovo, Somalia & professionals
and workers
Census in 2006: 31.779 0.76 percent of the
population
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Diversity in terms of nationality and ethnicity not a barrier for social integration
73 % believe that they are fully integrated
77% feel accepted
Some incidents related to Islamophobia are stillexperienced Incidents relate to verbal abuse and disrespect rather than physical
assaults or criminal damage
Irelands Muslims are less tied to thecountrys historical baggage
Dramatic increase in the number ofMuslims now living has happened so
seamlessly
The integration of the Muslim communitywith Irish society has not been the subject
of disturbances & negative reactions
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Profile of the Muslim Population in Ireland
Third largest religious group in the State
young populationmany were born in Ireland of immigrant parents
majority identify their ethnicity as other than Irish
geographical distribution
Dublin
Munster
Connacht
Ulster
others
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quite a high socio-economic status in Ireland Attaining a level of degree or higher
Muslims: 37.91 %
General Irish population: 16.94 %
Socio economic groups Higher professionals: 17.47 % of Muslims
Strong employment status 45.11 % that are eligible for labour are at work
Students, persons looking after home
Muslims that are employers Only 11.11% of these are women
Muslims who are looking after home/family 92.77 % are women
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Islamic organisations in Ireland
The Islamic Foundation of Ireland First organisation established in 1959, Dublin Formed by a group of Muslim students Very involved in preserving Muslim traditions and values Literature about Islam in English, Arabic, Urdu (including
Quran) In 1990 first Muslim school was opened They provide:
Iftar meals during Ramadan Halal food Mosque is open to tours by public Funeral services Translation services for official documents
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Islamic Cultural Centre of Ireland Founded in 1996
Since than is an important and well established centre for Muslimin Ireland
Encourage the integration of Muslims into Ireland whilekeeping Islamic traditions alive
Multipurpose hall Communal fair is held there twice a year Arabic books, literature Hanmade decorations Large selection of Ladies Islamic clothing Also for hiring wedding, celebrations, exhibitons Serves Arab and Pakistani food Frequented also by members of general public Marriage facilities Facilitates Muslim funerals Offers a translation service for official documents
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SURVEY RESEARCH FINDINGS
Online surveys (Ethnic media and Islamicwebsites)
Face-to-face surveys (Dublin Mosques)
English and Arabic
151 survey respondents
90% confidence level
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Entrepreneurs from the Muslim Community in Ireland Gender, Age and Education
Gender
Survey Respondents CSO 2006
Male 87% 65%
Female 13% 35%
Total 100% 100%
Level of Education Achieved
Survey Respondents CSO 2006*
All Respondents Business Owners
Primary 1.1% - 9.5%
Lower Secondary 2.2% 2.9% 11.4%
Upper Secondary 16.3% 20.6% 23.5%
3rd Level Non Degree 18.5% 32.4% 7.7%
3rd Level Degree 62% 44.1% 37.9%
Total 100% 100% 100%
Age
Survey Respondents CSO 2006
25-44 years 80% 88%
45-64 years 20% 12%
Total 100% 100%
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Geographic Distribution
91% of Muslim businesses surveyed Dublin
According to CSO 2006 census
Expected as 53% Muslims in Ireland are based in Dublin.
Remaining respondents located in countiessurrounding Dublin.
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Extent of Muslim Business Ownership
61%
39%
No
Yes
Rate of Business Ownership among Muslims in Ireland 2010.
Are you the owner or co-owner of a business?
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Mapping Entrepreneurship in theMuslim Community in Ireland
1. Characteristics of Muslim Owned Businesses
2. Owner Characteristics
3. Challenges Facing Muslim Entrepreneurs
4. Access to Finance
5. Business Skills
6. Network Connections
7. Business Performance
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1. Business Characteristics
44%
24%
30%
2%
What form of Business did you set up?
Sole Ownership
Partnership
Company (Ltc)
Other
15%
22%
22%
41%
How long have you owned or co-owned a business?
Less than 1 Year
1 -2 years
3 -4 years
5 years +
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1. Business Characteristics
2% 5%
35%
16%2%
9%
19%
12%
Which industry do you operate in?
Construction
Consultancy
Restaurant/food
ICT
Manufacturing
Personal Services
Wholesale/Retail
Other
68%
16%
5% 7%
4%
What Percentage of Your Sale were to Your Country
of Birht?
Zero
Less than 10%
10 - 30%
31 - 75%
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2. Owner Characteristics
Textile Restaurant
Retail ITC
Services Car Show Room
28% of respondentspreviously owned a
business in their country of origin.
25%
36%
23%
11%
5%
Status Prior to Self-Employed Business Owner
Always been self employed
Employee of a firm
Unemployed
Full-Time student
Participant on an enterprise training programmeother
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2. Owner Characteristics
68%
24%
8%
Casual Factors of Muslim Business Start-Ups in
Ireland
Business Opportunity
Unable to find suitable work
Unable to fulfil career ambitions in current organisation
24%
32%12%
17%
15%
Main Advantages of Self-Employment
Flexibloe hours of work
Opportunity to fully apply my skills/talents
Means of establishing myself in my adopted society
Prestige associated with being the owner of a business
Get to be my own boss
Opportunity to make more money compared to working for somebody else
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2. Owner Characteristics
21%
3%
21%
11%
11%
11%
4%
11%
7%
Areas of Study for Muslim Entrepreneurs
Education
Humanities, Arts, Languages
Business, Law, Social Science
ICT
Engeneering, Manufacturing, Construction
Agriculture and Veterinary
Health
Social Services
Services (hotel, catering, sports, transport)
Muslim Entrepreneurs by Origin
North Africa Other African Irish Other European Middle East
44% 3% 22% 9% 22%
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3. Challenges Facing Muslim Entrepreneurs
Experienced Discrimination from YES NO
Financial Institutions 13% 87%
Supplier 15% 85%
Customer 24% 76%
Competitor 11% 89%
Landlord 20% 80%
State Agency 13% 87%
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3. Challenges Facing Muslim Entrepreneurs
69%
41%
15%
39%31% 33%
51%
67%
36%
3%
28% 25% 28%31%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Securing Finance
Familiarity with Business
Law and Regulation
Discrimination Business Contacts
Language Gaining trust of Customers and Suppliers
Support from Government
Agencies
Perceived vs. Actual Challenges Facing Muslim Entrepreneurs in the Irish Market
Perceived Challenges Experienced Challenges
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3. Challenges Facing Muslim Entrepreneurs
0% 10% 20% 30% 40% 50% 60% 70% 80%
Obtaining State Support
Gaining trust of customers or suppliers
Language
Business Contacts
Discrimination
Familiarity with the Local Laws and Regulations
Challenges perceived by Muslim Entrepreneurs with the Age of the Business
5 Years +
3 to 4 Years
1 to 2 Years
Less than 1 Year
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4. Access to Finance
22%6% 6%
27%
6%
78%94% 94%
73%
94%
0%
20%
40%
60%
80%
100%
120%
Bank/Building Credit Union Government agency Family/Relatives Business acquaintances
YES NO
Have you tried to access Shariah finance from the following sources?
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4. Access to Finance
Source Approach forShariah Compliant Fiance
% of Respondents whoTried to access Shariah
Compliant Finance
Success Rate
Bank/Building Society 22% 12,5%
Credit Union 6% 50%
Government Agency 6% 50%
Family/Relative 27% 87,5%
Business Acquaintance 6% 100%
Success Rate obtaining Shariah Compliant Finance
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4. Access to Finance
Sources Tried % of Respondents whoTried to access Shariah
Compliant Finance
Success Rate
Bank/Building Society 16% 66%
Credit Union 3% 100%
Government Agency 14% 20%
Family/Relative 17% 100%
Business Acquaintance 6% 100%
Success Rate obtaining non-Shariah Law Compliant Finance
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4. Access to Finance
Start-Up Finance
Source of capital: 82,5% personal finances.
Self-finance, support from family, finances fromother sources.
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5. Business Skills
39%
62%70%
61%
38%30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qualification Experience Qualification or experience
YES NO
Skills Area YES NO
Business Planning & Organisation
61% 39%
Financial Management & Cost Control
65% 35%
Marketing 65% 35%
Customer Relations 61% 39%
Management of Employees
55% 45%
InformationTechnology
48% 52%
Business Qualifications and PreviousManagement Experience
Evaluation of Business Skills
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5. Business Skills
Training Provider Percentage of Respondents
YES NO
Country & CityEnterprise Board
22% 78%
Local Partnership 9% 91%
FAS 24% 76%
Enterprise Ireland 6% 94%
Institute of MinorityEnterprise
3% 97%
0%
10%
20%
30%
40%
50%
60%
Lack of Information
Do not require
outside help
Business Training
Programmes Not
Relevant
No Time Cost Too High
Participation in Business Training Programme
Reasons for Not Participating onBusiness Training Programmes
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5. Business Skills
Source of Information Percentage of Respondents
National Media 15%
Ethnic Media 15%
Ethnic Websites 10%
Ethnic Organisations 10%
College / University 10%
Personal Contacts 35%
Sources of Information for Business Training Programmes
72% expressed interest in participating in next two years
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6. Network Connections
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
I feel there is nothing to be gained from joining
Not sure as to how to go about joining
Do not feel that business
organizations/business networks in Ireland are
open to foreing business persons
Cost is too high Do not know anyone else who is a member
Reasons for Not Joining an Irish Business Organisation
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6. Network Connections
19%
14%
35%
27%
5%
Muslim Customer Base
0%
1 - 25%
26 - 50%
51 - 75%
Greater than 75%
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7. Business Performance
Over the past twoyears majority of business report(on average):
56% growth.
41% benefits.
3% 6%
16%
29%
56%
41%
22% 24%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Growth Profitability
Very Dissatisfied
Dissatisfied
Average
Satisfied
Very Satisfied
Business Growth and Profitability
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7. Business Performance
Growth Strategy Percentage of Respondents intending toUndertake this Growth Strategy
Increase Sales 70%
Increase Profitability 72%
Hire More Staff 43%
Increase Product Range 63%
Enter New Markets 57%
Upgrade / Move to a New Premises 46%
Future Strategies for Business Growth
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Summary of Muslim OwnerCharacteristics
36% were employed before starting their business.
28% previously owned a business.
68% saw a business opportunity and related was the
finding that 32% saw the opportunity to apply their
skills.
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Summary of Muslim OwnerCharacteristics
There was a little relationship between their cualificationsand businesses.
Discrimination was not a big issue.
Securing finance was a significant challenge particularly asthere were no Shariah law compliant financial products onthe Irish market.
Business growth and profitability was expected to grow inthe next two years.
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Thank you for your attention
Petra Novak
Paula Romero
Iris Ra