The factors influencing entrepreneurship in post-conflict regions: the case of Bougainville, Papua New Guinea

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Copyright: Simili, Sylvia
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Abstract
Post-conflict reconstruction and development is a challenge for many civil war-torn countries. The commonly used reconstruction and development strategies such as peace building provide temporary relief from the effects of war but fail to address the long-term issue of economic development of a country. Scholars are now recognising that entrepreneurship is the solution to sustainable post-conflict reconstruction and economic development. Local entrepreneurship provides employment opportunities, sustains livelihoods and reduces poverty. Most importantly entrepreneurship creates employment opportunities for ex-combatants’ reintegration into civil society. This research contributes to the literature on post-conflict reconstruction and development. It focuses on post-conflict Bougainville in Papua New Guinea. Entrepreneurs seem to be driving the economic reconstruction of post-conflict Bougainville. However, entrepreneurship and development seem to be occurring only in North Bougainville, while South Bougainville remains marginalised. In addition, many South Bougainvilleans entrepreneurs are migrating from their homes to North Bougainville in order to establish businesses. The study looks at the factors or motivation behind this phenomenon. The research used mixed methods research which consisted of a survey questionnaire for the quantitative component and in-depth interviews for its qualitative component. The survey questionnaire was conducted on a sample of Bougainville entrepreneurs, while the sample for the in-depth interviews comprised South Bougainville entrepreneurs. The research was conducted in the Buka and Kokopau towns of North Bougainville. Data from the survey questionnaire was analysed using SPSS. An inductive reasoning approach was used to analyse qualitative data for emerging themes. Analysis showed that market size, proximity to government services and transport infrastructure are some motivational factors attracting South Bougainvillean entrepreneurs to Buka and Kokopau. The result also shows ‘push factors’. The lack of employment opportunities is pushing people into entrepreneurship. Security is also shown to be important factor in determining the business location. The main constraint businesses face is lack of funds or access to funding. Another problem for the Bougainville-owned retail businesses is the Chinese-owned shops whose cheaper prices are driving the Bougainvilleans out of business. In conclusion, the research emphasises that in order to encourage entrepreneurship the following factors need to be addressed: building transport infrastructure; establishing security; and providing funding. Future research needs to focus on how to stimulate entrepreneurship in South Bougainville.
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Author(s)
Simili, Sylvia
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De Klerk, Saskia
May, Marian
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Publication Year
2014
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Masters Thesis
UNSW Faculty
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