Leveraging diaspora finance for inclusive and sustainable rural entrepreneurship in the Indian Punjab

Diaspora finance has been studied extensively for fostering inclusive economic participation, supporting innovation and value addition. The extent and seminal literature indirectly present diaspora finance as an informal source of finance for the families and relatives of the diasporan population. There is extensive research on the flow of diaspora remittances to the home country, but less is known about the utilisation of diaspora funds as a formally organised alternative financing source for promoting entrepreneurship, especially rural entrepreneurship and farming. However, the use of diaspora finance in rural entrepreneurship in the Indian Punjab is amiss. Therefore, this chapter reaches out to explores the linkages between diaspora finance and rural entrepreneurship by analysing the challenges and opportunities of utilising formally organised diaspora finance to promote rural entrepreneurship in the Indian Punjab. Using the qualitative approach, the findings suggest that remittances and transnational philanthropy provide critical financial resources that supplement inadequate domestic funding, especially in rural areas where formal financial services are limited. An innovative conceptual framework has been developed to conceptualise the utilisation of diaspora finance for empowering rural entrepreneurship to foster economic growth. The conceptual framework provides the context and explains the factors that inhibit the Punjabi diaspora's large-scale engagement in rural entrepreneurship and farming specifically. This study advances the understanding of the underutilisation of diaspora finance for rural entrepreneurship in the Indian Punjab. It emphasises the need for a supportive policy framework to leverage diaspora finance for sustainable rural entrepreneurship, inclusive growth and reducing rural-urban disparities.