HARNESSING REMITTANCES FOR ENTREPRENEURSHIP DEVELOPMENT IN DEVELOPING COUNTRIES: OPPORTUNITIES AND CHALLENGES

Abstract

Remittances, financial transfers made by migrant workers to their home countries, have become a critical driver of economic development in developing nations. This paper is a conceptual paper which presents the role of remittances as a lifeline for household consumption and a catalyst for entrepreneurship. By providing vital financial resources, remittances empower marginalized groups, stimulate the growth of small and medium enterprises (SMEs), and contribute to poverty reduction and economic inclusivity. However, their full potential is constrained by challenges such as inadequate financial infrastructure, high transaction costs, and the risk of dependency. To maximize the transformative impact of remittances, targeted policies and strategies are essential. These include reducing transaction fees, enhancing access to financial services, and fostering an entrepreneurial culture. By addressing these barriers, remittances can significantly contribute to sustainable development, economic diversification, and the achievement of global development goals.