Countries that require international entrepreneurs to have a national partner (national ownership requirements (NOR)) in order to open up a new venture within their borders, run the risk of becoming less desirable to do business in. One reason for this is that some investors and international entrepreneurs may be wary of possible conflict being solved in a court system that shows a positive bias towards its citizens. This paper looks at the experiences of five international entrepreneurs involved in small and medium-size enterprises (SMEs) in Kenya and explores how their experiences have become a warning to others who see potential gain from doing business in that country and other countries with NOR. It also explains how one such entrepreneur found herself to have a perception of partiality based from her experience with the court system in Kenya and how that perception decreased the likelihood of her opening an international entrepreneurship venture in Saudi Arabia—which also has NOR for business operating in the Kingdom. The focus of this paper is to suggest a role for alternative dispute resolution (ADR) as a measure to lower the risk, whether real or perceived, which may keep international entrepreneurs from investing their resources in countries with NOR.
The Use of Alternative Dispute Resolution to Reduce the Perception of Partiality in the Courts, in Order to Encourage International Entrepreneurship in Countries with National Ownership Requirements,
20 Pepp. Disp. Resol. L.J.
Available at: https://digitalcommons.pepperdine.edu/drlj/vol20/iss3/4