Characteristics of migrant entrepreneurs as agents of direct investment in sub‐Saharan Africa: An observation of the Lebanese in Nigeria
| Date | 01 June 2010 |
| Published date | 01 June 2010 |
| Pages | 193-212 |
| DOI | https://doi.org/10.1108/20425961201000015 |
| Author | Charles J. Mambula I |
| Subject Matter | Public policy & environmental management |
World Journal of Enterprenuership, Management and Sustainable Development, Vol. 6, No. 3, 2010
characterIstIcs of MIgrant
entrepreneurs as agents of dIrect
InvestMent In sub-saharan afrIca: an
observatIon of the Lebanese In nIgerIa
Charles J. Mambula I*
Langston University, USA
Abstract: This chapter is a hybrid of entrepreneurship and international business.
While conceptualising Foreign Direct Investment (FDI), together with theory and
practice for development, the study looks at the role migrant entrepreneurs can
play in the process, i.e. Africa. The study focuses on one group of Entrepreneurs
(the Lebanese) who migrated and established successful business communities in
Nigeria. Common qualities between the Lebanese and Nigerian entrepreneurs are
compared and contrasted considering the adaptive ability of the Lebanese in the
presence of constraints. The Host country is encouraged to create an enabling envi-
ronment for both domestic and foreign investors.
Keywords: FDI; foreign direct investment; entrepreneurship; globalisation; Nigerians;
Lebanese; adaptation; communication; culture.
Copyright © 2010 WASD
IntroductIon
Foreign Direct Investment (FDI) can take
many forms and has grown dramatically.
FDI is now considered one of the largest
sources of capital inflow to developing
countries (Moran, 1999). The Effect of
FDI on the growing economies of India,
China and Ireland in the 21st century for
instance is a good example. In the process
however, the failure of expatriate assign-
ments is quite high. Estimates place expa-
triate failure for US companies alone to be
between 20 and 50%. According to Deresky
(2008), one of the reasons that accounts
for this high failure rate is the lack of cross
cultural understanding and training. Japan-
ese and European firms however, appear to
do a better job of selecting international
managers who can adapt well to foreign
environments and as a result experience
lower expected failure rate.
According to Schumpeter (1934) entre-
preneurs are economic development agents
and together with proper application of
FDI policies can indeed promote economic
growth and general development (Moran
et al., 2005). Furthermore, in the 21st cen-
tury, there is growing importance of the
Professor Charles J. Mambula 1, Associate Professor & Chairperson, Management Department,
Langston University School of Business, PO Box 1500, Highway 33 East, Langston City, Oklahoma
73050, Tel: (405)-466-3476, Cell:(774)-487-7509, Email: cjmambula@lunet.edu and
mambula767@aol.com, USA
193
194 Charles J. Mambula I
intersection of entrepreneurship in global
business (Oviatt and McDougall, 2005)
and the findings from this study could add
something new to the role of entrepreneur-
ship and factors that determine FDI in
countries, especially in Africa where little
attention has been given in research (Vaaler,
2005).
One of the leading foreign groups that
can be observed in significant number in
Nigeria is the Lebanese. It would be inter-
esting to know why and what explains the
Lebanese attraction and ability to settle and
do business in Nigeria effectively amidst
concerns of security, corruption, political
and economic instability, ethnic and reli-
gious bigotry among other reasons, which
Nigeria is notorious for.
Relatively, little FDI activity is occurring
in the African continent. And most of the
African continent is still relegated to the lev-
el of rentier based economies, banana state,
Third World (TW) economies and LDCs.
This study will attempt to identify the entre-
preneurial qualities and factors that contrib-
uted to the successful adaptation and prog-
ress of the Lebanese in Nigeria and disprove
the fallacy that investing in lesser-developed
sub-Saharan African countries like Nigeria
is risky, dangerous and should be avoided.
In addition, the study will show that even
small migrant entrepreneurs from somewhat
unstable developing countries like Lebanon
can equally venture and become successful
in Africa (Samli, 2004). Implications of the
Lebanese entrepreneurs’ experience in the
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