Transnational Entrepreneurs: Between Vulnerability and Solidarity
The immobility caused by the current coronavirus crisis affects migrant entrepreneurs in Switzerland who depend on transnational connections for their businesses. Their reactions to the outbreak highlight their vulnerable position, but also their creativity and the importance of supportive networks for building resilience.
In recent years, transnational entrepreneurs have been celebrated by researchers, policymakers, and the media as agents of development and role models for labor market integration. Defined as migrant firm-owners who take advantage of opportunities across national borders, they travel regularly, move goods or services, and use the know-how and contacts they have abroad, especially in their country of origin (Drori et al. 2009, Zapata-Barrero & Rezaei 2019). Yet, this group is particularly vulnerable to mobility restrictions and their economic consequences. Building on research conducted as part of the nccr – on the move, we analyze the impact of the current coronavirus crisis on transnational entrepreneurs in Switzerland.
COVID-19 and Transnational Entrepreneurship
Confinement and travel restrictions are currently disrupting the mobility of people, goods, and capital as we know it. Moreover, the crisis reveals that the capacity to stay at home without facing disastrous economic consequences is unequally shared. Transnational entrepreneurs are in a particularly difficult situation right now. Many of them have lost access to an income, which is differentially dramatic depending on one’s financial reserves and family situation. Moreover, because of the mobility restrictions, importing and exporting goods or services have become more difficult, and sales have dropped significantly, even online. Finally, many transnational entrepreneurs are geographically separated from their family and friends, and face difficulties in taking advantage of governmental support measures due to language barriers and the unfamiliarity with the Swiss system. The insecurity of being self-employed and the dependence on international mobility intersect with their vulnerability as migrants, which affects both their livelihood and psychological well-being. Some of these entrepreneurs are drawing attention to this challenging situation on social media.
Calls for Support and Solidarity
Transnational entrepreneurs are developing creative ideas to adapt to current challenges. A Swiss-based fashion entrepreneur from Uganda producing and selling homemade facial masks out of leftover fabric is just one example. Such solutions, however, are rarely enough to ensure the sustainability of their businesses in the face of current events.
The Swiss government has developed a package of measures to face the economic consequences of the crisis, such as bridging loans and income compensation schemes. In the first stage, however, these measures only applied to businesses that had to close as a direct consequence of the restrictions due to the pandemic, thus excluding many entrepreneurs. Media reports and petitions supported by political parties and prominent figures were launched to denounce this unequal treatment. Their lobbying was successful: on April 16, the government accepted to extend access to income compensation to self-employed workers indirectly affected by the confinement measures. Moreover, various organizations are calling for solidarity and encouraging clients to support small businesses instead of big multinational companies. Organizations working with migrant entrepreneurs are also reaching out to their members, offering virtual events, webinars and further resources to foster supportive networks.
The Vulnerability of Heroes
Transnational entrepreneurs are often portrayed as economic heroes boosting innovation, development, and their own “integration”. Yet, we sometimes forget that becoming an entrepreneur involves taking risks and renouncing to the security of an employed job with a stable salary and social insurance. The current lockdown is a crucial challenge for transnational self-employed migrants who are particularly vulnerable to crises. Collective efforts that advocate for the extension of the support measures and appeals to solidarity call into question the traditional image of the self-made business owner and make interdependencies visible. They remind us that success rarely relies solely on the behavior of single individuals and that support networks and institutions are key to generating opportunities and resilience.
Laure Sandoz and Christina Mittmasser work as researchers at the University of Neuchâtel, at the Institute of Geography. They are part of the nccr – on the move project Migrant Entrepreneurship: Mapping Cross-Border Mobilities and Exploring the Role of Spatial Mobility Capital.
References:
– Drori, I., Honig, B., & Wright, M. (2009). Transnational entrepreneurship: An emergent field of study. Entrepreneurship Theory and Practice 33(5), 1001–1022.
– Zapata-Barrero, Ricard, & Rezaei, S. (2019). Diaspora governance and transnational entrepreneurship: The rise of an emerging social global pattern in migration studies. Journal of Ethnic and Migration Studies, 1–15.
