Arab Entrepreneurship in Romania’s Economic Environment: Adaptation, Resilience, and Sustainable Growth Perspectives

This paper explores the role of Arab entrepreneurship in Romania in light of the increased international migration and the emergence of a knowledge-based economy. This study looks at how Arabic immigrant entrepreneurs contribute to the economic development of Romania while encountering various challenges including those associated with the legal, social, and linguistic institutions of Romania. A review of the existing literature surrounding the knowledge-economy, and entrepreneurship amongst migrants, indicates that human capital, transnational networks, and innovation capability are becoming increasingly important determinants of competitiveness and sustainable growth. However, empirical evidence demonstrating how Arabic entrepreneurs mobilise these intangible resources and adapt their business models to conditions local to Romania is limited. The methodology for this research involved using an exploratory qualitative approach via an online questionnaire sent to 9 Arabic entrepreneurs operating in Romania from a variety of economic sectors such as import/xport, hospitality and agriculture. The topics of questioning included the adaptation of business models; language and cultural barriers; the impact of local Arabic communities and local Romanian partners; entrepreneurial resilience throughout recent economic downturns; and how they perceive opportunities for long-term sustainable growth. Key findings indicate that all respondents have attained a high level of education, are well-integrated with both the Arabic and the Romanian networks, and have shown a moderate degree of entrepreneurial resilience. Respondents reported to adapt their product/service offerings, employee workforce and organisational structures; selectively utilise social media; and consider innovation, central to maintaining competitiveness, despite all of them reporting that the current economic climate has negatively impacted their sales. Most entrepreneurs said they had prepared and articulated a plan for the sustainable growth of their businesses over the next 3-5 years. This research contributes to the existing literature on entrepreneurship by providing rare empirical data on the Arabic entrepreneurial marketplace in Romania. It demonstrates the connection between the business strategies of immigrant businesses and the knowledge-based economy and sustainable development.