Muslim Entrepreneurship in Ireland

MUSLIM ENTREPRENEURSHIP

IN IRELAND

Muslimentrepeneurship

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.

Ethnic participation is increasing in terms ofself-employment so they play a importantrole in the establishment of small businessenterprises.

Perfomance conditions for migrantentrepreneurs: (opportunities and barriers)

Structural factors: social exclusion, discrimination

Cultural factors: skills, cultural features, personal motivation

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

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

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

Webers Theory

He is sure that Protestant Religion is very

link to entrepreneurialism.

Carswell and Rolland

The Muslim comunity has a great propensity

for entrepreneurship compared to the white

indigenous population.

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

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.

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.

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

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

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

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

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

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

SURVEY RESEARCH FINDINGS

Online surveys (Ethnic media and Islamicwebsites)

Face-to-face surveys (Dublin Mosques)

English and Arabic

151 survey respondents

90% confidence level

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%

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.

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?

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

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 +

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%


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


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


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%


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%


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


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


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?


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


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


Start-Up Finance

Source of capital: 82,5% personal finances.

Self-finance, support from family, finances fromother sources.

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

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

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


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


19%

14%

35%

27%

5%

Muslim Customer Base

0%

1 - 25%

26 - 50%

51 - 75%

Greater than 75%


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


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

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.

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.

Thank you for your attention

Petra Novak

Paula Romero

Iris Ra

Documents

Muslim Entrepreneurship in Ireland