Unravelling the Dynamics of Necessity-Driven Entrepreneurs (NDEs) and Opportunity-Driven Entrepreneurs (ODEs): A Study of Immigrant Micro Enterprises (IMEs) in the Hospitality Industry

The purpose of the study is to investigate the notion of Necessity-driven Entrepreneurs (NDEs) and Opportunity-driven Entrepreneurs (ODEs) among IME (Immigrant Micro Enterprise) owners in the hospitality industry and how changes in motivational traits influence business practices, innovation, and growth aspirations. In many geographical contexts, the ever-challenging hospitality industry is dominated by businesses that are immigrant-owned and of micro sizes that experience additional challenges compared to their native and large counterparts. Through qualitative research and interviews with 18 owners of restaurants and eateries in the IME category in eastern Norway, the study found that while NDE traits are dominant during start-ups, ODE traits also exist, revealing a dynamic relationship between the two and thus problematic to classify hospitality IMEs as either NDE or ODE. Experiences and close customer interactions rather than formal R&D activities inspire changes and innovations in business practices, growth aspirations, and perceptions of success. This study offers new insights into hospitality IME owners’ motivations and goals, which may be relevant in other similar industries and geographical contexts. It underscores the importance of understanding the interplay of NDE and ODE traits among IME owners and their impact on business success in the challenging industry in which they operate.