Roles of the diaspora in supporting SME exporters

Roles of the diaspora in supporting SME exporters

Diasporas can potentially play a number of roles in supporting SME exporters from their home countries. A single member of the diaspora may play several roles simultaneously, or may also change through different roles over time, often with increased commitment as trust and emotional involvement with the country of origin deepen.

The eight roles of the diaspora in supporting SME exporters are:

Consumer: Diasporas, should they have the inclination, often have the purchasing power to consume a comparatively large number of products from their country of origin. Usually, diasporas will choose to do so either because these products have some combination of unique utility value and an intrinsic benefit to do with identity affirmation.

Investor: Diasporas may have enough saved capital and business savvy to decide to invest in enterprises in their countries of origin. They may be motivated by the possibility of an attractive return on their investment, or by a certain social benefit related to their desire to help the development, job and wealth creation of their country of origin.

Entrepreneur: Diaspora entrepreneurs may see opportunities to provide other members of their diaspora with products from their country of origin through business partnerships with exporting SMEs from that country.

Skilled professional: Diasporas often have opportunities to acquire skills that SMEs from their country of origin find difficult to access. As such, a good relationship with their diaspora can allow SMEs to access these skills on employment, consultancy, pro bono, or another basis that strengthens key aspects of their business performance and operations.

Connector: Diasporas may be well-placed to open doors for SME exporters from their country of origin by using their connections with potential key players in the export market, such as investors, business partners, or advisors.

Champion: In some cases, diasporas may be in a position to serve as “brand ambassadors” for products from their country of origin. For instance, diaspora opinion-makers who have a strong (social or traditional) media presence can help an SME amplify its message and help to market and promote exports from their country of origin.

Advisor: Diasporas can provide advice across a range of topics of relevance for SME exporters. In particular, some members of the diaspora may have acquired the maturity and skills to act as advisors to SME exporters from their country of origin.

Coach/mentor: Sometimes, diaspora members who have acquired particular specialist or technical skills may take on the role of coaches or mentors for their counterparts living in their country of origin, whether in a formal business partnership role or because of other motivations.

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