MUSLIM

ENTREPRENEURSHIP
IN IRELAND

Muslim
entrepeneurship

Whats entrepreneurship?
Entrepreneurship means more to create
employment opportunities, its also the
way to contribute to well-being of the
community.

Several studies have highlighted that

migration provides many benefits and
contributes to economic growth.

 Ethnic participation is increasing in terms of

self-employment so they play a important
role in the establishment of small business
enterprises.

Perfomance conditions for migrant

entrepreneurs: (opportunities and barriers)
Structural factors: social
exclusion, discrimination
Cultural factors: skills, cultural
features, personal motivation

Principal challenges facing ethnic

entrepreneur:

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 regulate
the behaviour in any ambit like social or
economical.
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 conventional
banking 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 (20032006) regarding
the occurence of
female business
ownership.

Noth Amrica

13
31

20

Europe and
Central Asia

East Asia

Latin America

20

24
Middle Eastern
and North
African
countries

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 and

traders from U.K. first Muslim community
began to slowly evolve
Census in 1991:
3.873

Muslim refugees
from
Bosnia, Kosovo, Som
alia & 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
Irelands Muslims are less tied to the
countrys historical baggage

Dramatic increase in the number of

Muslims now living has happened so
seamlessly

The integration of the Muslim community

with Irish society has not been the subject
of disturbances & negative reactions

Some incidents related to Islamophobia are still

experienced
Incidents relate to verbal abuse and disrespect rather than physical
assaults or criminal damage

Profile of the Muslim Population in

Ireland
Third largest religious group in the State
geographical
distribution
Dublin
Munster
Connacht
Ulster
others

young population many were born in

Ireland of immigrant parents
majority identify their ethnicity as other than Irish

 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 Muslim
in Ireland

Encourage the integration of Muslims into Ireland while

keeping 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 Islamic
websites)
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

Age

Survey Respondents

CSO 2006

Survey Respondents

CSO 2006

Male

87%

65%

25-44 years

80%

88%

Female

13%

35%

45-64 years

20%

12%

Total

100%

100%

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%

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 counties
surrounding Dublin.

Extent of Muslim Business Ownership

Rate of Business Ownership among Muslims in Ireland 2010.
Are you the owner or co-owner of a business?

39%
No

Yes
61%

Mapping Entrepreneurship in the

Muslim 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
What form of Business did
you set up?

How long have you owned

or co-owned a business?

2%
Sole
Ownership
Partnership

30%

44%

15%

1 -2 years

41%
22%

Company
(Ltc)
Other
24%

Less than 1
Year

22%

3 -4 years
5 years +

1. Business Characteristics
Which industry do you
operate in?

What Percentage of Your

Sale were to Your Country
of Birht?

2% 5%

4%

12%

Construction

Consultancy

5%

Zero

7%

Restaurant/food

19%

35%

Less than
10%

ICT
Manufacturing

16%

10 - 30%

Personal Services

9%
2%

Wholesale/Retail

16%

Other

68%

31 - 75%

2. Owner Characteristics
Status Prior to Self-Employed
Business Owner
Always been self
employed

5%
11%

28% of respondents
previously owned a
business in their country of
origin.

Employee of a firm

25%
Unemployed

Full-Time student

23%

36%

Participant on an
enterprise training
programme
other

Textile

Restaurant

Retail

ITC

Services

Car Show Room

2. Owner Characteristics
Casual Factors of Muslim
Business Start-Ups in
Ireland

Main Advantages of SelfEmployment

Flexibloe hours of
work

Business
Opportunity

8%
24%

Unable to find
suitable work

15%

Opportunity to fully
apply my skills/talents

24%
Means of establishing
myself in my adopted
society

17%

Prestige associated
with being the owner
of a business

68%
Unable to fulfil
career ambitions
in current
organisation

12%

32%

Get to be my own
boss
Opportunity to make
more money
compared to working
for somebody else

2. Owner Characteristics
Areas of Study for Muslim Entrepreneurs
Education

7%

Humanities, Arts, Languages

21%

11%

Business, Law, Social Science

4%

3%

ICT
Engeneering, Manufacturing, Construction

11%

Agriculture and Veterinary

21%

Health

11%

Social Services

11%

Services (hotel, catering, sports, transport)

Muslim Entrepreneurs by Origin

North Africa

Other African

Irish

Other European

Middle East

44%

3%

22%

9%

22%

3. Challenges Facing Muslim Entrepreneurs

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%

3. Challenges Facing Muslim Entrepreneurs

Perceived vs. Actual Challenges Facing Muslim
Entrepreneurs in the Irish Market
80%
70%

69% 67%

60%

51%

50%

41%

40%

39%

36%

28%

30%

31%

33%
25%

28%

31%

15%

20%
10%

3%

0%
Securing
Finance

Familiarity Discrimination
with Business
Law and
Regulation

Perceived Challenges

Business
Contacts

Language

Gaining trust Support from

of Customers Government
and Suppliers
Agencies

Experienced Challenges

3. Challenges Facing Muslim Entrepreneurs

Challenges perceived by Muslim Entrepreneurs with the
Age of the Business
Familiarity with the Local Laws and
Regulations
Discrimination
Business Contacts

5 Years +
3 to 4 Years

Language

1 to 2 Years
Less than 1 Year

Gaining trust of customers or suppliers

Obtaining State Support

0% 10% 20% 30% 40% 50% 60% 70% 80%

4. Access to Finance
Have you tried to access Shariah finance from the following sources?
120%
100%
80%

60%

73%

78%
94%

94%

94%

40%
20%

27%

22%
6%

0%
Bank/Building

Credit Union

6%
Government agency Family/Relatives

YES

NO

6%
Business
acquaintances

4. Access to Finance
Success Rate obtaining Shariah Compliant Finance
Source Approach for
Shariah Compliant Fiance

% of Respondents who
Tried 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%

4. Access to Finance
Success Rate obtaining non-Shariah Law Compliant Finance
Sources Tried

% of Respondents who
Tried 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%

4. Access to Finance
Start-Up Finance
Source of capital: 82,5% personal finances.
Self-finance, support from family, finances from
other sources.

5. Business Skills
Business Qualifications and Previous
Management Experience
100%

Evaluation of Business Skills

Skills Area

YES

NO

Business Planning &

Organisation

61%

39%

65%

35%

60%

Financial Management
& Cost Control

50%

Marketing

65%

35%

Customer Relations

61%

39%

Management of
Employees

55%

45%

Information
Technology

48%

52%

90%

38%

80%
70%

30%

61%

40%

62%

30%
20%

70%

39%

10%
0%
Qualification

Experience

YES

NO

Qualification
or experience

5. Business Skills
Participation in Business
Training Programme
Training Provider

Percentage of
Respondents
YES

NO

Country & City

Enterprise Board

22%

78%

Local Partnership

9%

91%

FAS

24%

76%

Enterprise Ireland

6%

94%

Institute of Minority
Enterprise

3%

97%

Reasons for Not Participating on

Business Training Programmes
60%
50%
40%

30%
20%
10%
0%
Lack of
Information

Do not
Business
No Time
require
Training
outside help Programmes
Not
Relevant

Cost Too
High

5. Business Skills
Sources of Information for Business Training
Programmes
Source of Information

Percentage of Respondents

National Media

15%

Ethnic Media

15%

Ethnic Websites

10%

Ethnic Organisations

10%

College / University

10%

Personal Contacts

35%

72% expressed interest in participating in next two years

6. Network Connections
Reasons for Not Joining an Irish Business Organisation
45%
40%
35%
30%

25%
20%
15%
10%
5%
0%
I feel there is nothing to Not sure as to how to
be gained from joining
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

6. Network Connections
Muslim Customer Base
5%
19%
0%

27%

1 - 25%

14%

26 - 50%
51 - 75%
Greater than 75%

35%

7. Business Performance
Business Growth and Profitability
100%

Over the past two

years majority of
business report
(on average):

90%

3%
22%

24%

80%

70%
Very Dissatisfied

60%
41%
50%

56%

Average

40%

56% growth.
41% benefits.

Dissatisfied

Satisfied

30%
29%

20%
10%

16%

0%

3%

6%

Growth

Profitability

Very Satisfied

7. Business Performance
Future Strategies for Business Growth
Growth Strategy

Percentage of Respondents intending to

Undertake 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%

Summary of Muslim Owner

Characteristics
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 Owner

Characteristics
There was a little relationship between their cualifications
and businesses.
Discrimination was not a big issue.
Securing finance was a significant challenge particularly as
there were no Shariah law compliant financial products on
the Irish market.
Business growth and profitability was expected to grow in
the next two years.

Thank you for your attention

Petra Novak
Paula Romero
Iris Ra