New research from the American University of Beirut’s Suliman S. Olayan School of Business (OSB) highlights the significant impact entrepreneurs can have in conflict-afflicted regions.

The study, part of OSB’s Business in Conflict research group, reveals that entrepreneurs can either foster peace or exacerbate conflicts, depending on their actions.

Business-for-Peace (B4P) Framework

The research, led by OSB professor Dr Jay Joseph, builds on the Business-for-peace (B4P) framework, which identifies ways the private sector can contribute to peacebuilding:

  • Economic Development: Creating jobs and stimulating economic growth.
  • Track-Two Diplomacy: Assisting with peace talks and negotiations.
  • Rule of Law: Promoting legal compliance and fairness.
  • Sense of Community: Enhancing feelings of belonging and safety.
  • Conflict-Sensitive Practices: Avoiding actions that could worsen conflicts.

Traditionally, B4P has focused on larger businesses, but this study emphasises the crucial role small business owners play in conflict zones. Entrepreneurs, deeply embedded in local communities, can directly influence the situation more effectively than larger corporations.

Positive and Negative Impacts

Entrepreneurs can positively impact their communities by building strong ties and assisting those affected by conflict. Conversely, they can also worsen situations by engaging in illegal activities and violence. Drawing from political science, international relations, geography, hospitality, and conflict-related studies, the research provides a critical view of entrepreneurship’s role in peacebuilding.

Business leaders can support peace by participating in disarmament programs, educating against illegal activities, and integrating corporate social responsibility (CSR) to drive societal transformation. To achieve a positive impact, entrepreneurs must avoid corruption and bribery, setting a good example for others.

While entrepreneurs alone cannot resolve a region’s conflict, they can help stabilise the area with the support of other local businesses. “The practical implications in this article offer an avenue to better support the pro-peace elements of entrepreneurship in conflict zones,” says Dr Joseph.

OSB’s Business in Conflict Research Group

Since 2018, OSB’s Business in Conflict research group has collaborated with major UN agencies, including the International Organization for Migration and the United Nations Industrial Development Organization, as well as international NGOs like Mercy Corps. The group has surveyed over 700 businesses in the MENA region, generating reports and guidelines to improve business-based livelihood programs in conflict zones.

The paper, “Entrepreneurship and Peacebuilding,” published in Sage Journals, has won the Best Published Paper Award at the International Association for Business and Society (IABS) Conference 2024. This recognition underscores the importance of the research and its potential to influence policies and practices in conflict-affected areas.

Entrepreneurs, with their unique position in local communities, have the potential to either support peacebuilding efforts or contribute to ongoing conflicts. This research highlights the need for responsible entrepreneurship to foster stability and growth in regions marred by conflict.