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Harnessing Remittances for Entrepreneurship Development in Developing Countries: Opportunities and Challenges

Year: 2025

Type: article

Abstract: Remittances, financial transfers made by migrant workers to their home countries, have become a critical driver of economic development in developing nations. This paper is a conceptual paper which presents the role of remittances as a lifeline for household consumption and a catalyst for entrepreneurship. By providing vital financial resources, remittances empower marginalized groups, stimulate the growth of small and medium enterprises (SMEs), and contribute to poverty reduction and economic inclusivity. However, their full potential is constrained by challenges such as inadequate financial infrastructure, high transaction costs, and the risk of dependency. To maximize the transformative impact of remittances, targeted policies and strategies are essential. These include reducing transaction fees, enhancing access to financial services, and fostering an entrepreneurial culture. By addressing these barriers, remittances can significantly contribute to sustainable development, economic diversification, and the achievement of global development goals.

Source: International Journal of Entrepreneurship and Management Practices

DOI: 10.35631/ijemp.829006

Authors: Nurul Muna Mohamad, Nur Fadiah Mohd Zawawi, Nur Izzaty Mohamad, Mohamad Hazeem Mohmad Sidik, Mohamed Ariff Abdul Rahman

Institutions: Universiti Sains Malaysia, Universiti Malaysia Kelantan

Language: English

Topic: Migration and Labor Dynamics

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, No poverty, Industry, innovation and infrastructure

Open Access status: diamond

Funders: Universiti Sains Malaysia, Universiti Malaysia Kelantan