Empirical Investigation of Impediments to Returnees’ Entrepreneurship in Ghana: An Application of Structural Equation Modelling

Ibrahim Issifu


In recent years the issue of return migration and development has gained the unprecedented attention of practitioners, policymakers, and international organizations. In particular, the International Organization for Migration’s assisted voluntary return program seems to be the subject of increasing euphoria and optimism. However, the most overlooked aspect of return migration and entrepreneurship has been the binding constraints facing returnee entrepreneurs in their home countries. Drawing on field survey data, this study examines the impediments to returnees’ entrepreneurship in the Ghanaian capital city of Accra using Principal Component Analysis (PCA) and Structural Equation Modeling (SEM) techniques. The results show that only finance appears to be a key impediment, with a direct relationship with returnees’ entrepreneurial activities. Further synthesis of the path analysis of this study shows that access to credit and business training could facilitate returnees’ foreign acquired financial and human capital into sustainable entrepreneurial activities in Ghana.

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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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