Mai Thi Thanh Thai, Ekaterina Turkina and Amon Simba
Through utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal…
Abstract
Purpose
Through utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal sectors. Plus, empirically assess the impact of social capital constructs on the national rates of entrepreneurship.
Design/methodology/approach
Adopting a regression-oriented methodology, partial least squares (PLS), the study used a sample comprising 50 nations. National rates of registered and nonregistered business creation were utilized as endogenous variables. To determine the indigenous variables, constructs of social capital were measured which is consistent with the World Value Survey (WWS).
Findings
The results of this study show that in the formal and the informal sectors, social networking enables business creation with varying levels of impact. It establishes that institutional trust has a negative effect on informal business creation and a positive effect on business registration; interpersonal trust drives entrepreneurship in the informal sector but has less impact on business registration; norms of trustworthiness are related to business registration than informal business creation.
Practical implications
The findings of this research have theoretical and practical implications. They stimulate academic debate on the application of social capital constructs at the national level. The indications that social capital promotes business formation in both the informal and formal sectors can influence entrepreneurship policy development in many countries.
Originality/value
The originality of the results of this study lies in how it conceptualizes social capital as having direct impact on business creation in the informal vs formal sector. Thus, the findings elevated the conceptualization of social capital to the national level thereby enhancing knowledge on the entrepreneurship process as well as developmental economics.
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Mai Thi Thanh Thai and Ekaterina Turkina
The purpose of this paper is to introduce the special issue on “Entrepreneurial migration: characteristics, causes and effects”.
Abstract
Purpose
The purpose of this paper is to introduce the special issue on “Entrepreneurial migration: characteristics, causes and effects”.
Design/methodology/approach
Literature review.
Findings
Studies on immigrant entrepreneurship have become increasingly popular and the importance of social context and social connections has been recognized by scholars. However, research on their effects on immigrant entrepreneurship has been rather limited. This special issue explains the essential steps of the entrepreneurial process by immigrants (i.e. host country choice, entrepreneurial engagement, new venture creation, business network development and corporate political activities) and discusses the effects of immigrant entrepreneurs on their host countries.
Originality/value
The paper presents a review of literature on entrepreneurial migration and social impacts.
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Ekaterina Turkina and Mai Thi Thanh Thai
This study is devoted to the empirical assessment of the macro‐level impact of social capital on immigrant entrepreneurship (the general levels of immigrant entrepreneurship, as…
Abstract
Purpose
This study is devoted to the empirical assessment of the macro‐level impact of social capital on immigrant entrepreneurship (the general levels of immigrant entrepreneurship, as well as high‐value added immigrant entrepreneurship).
Design/methodology/approach
The paper applies multiple regression analysis to the data on immigrant entrepreneurship and high‐value added immigrant entrepreneurship provided by OECD. The measures of the independent variables (the components of social capital) are based on World Value Survey.
Findings
The results reveal that social capital does play a significant role in high‐value added immigrant entrepreneurship in particular and immigrant entrepreneurship in general. With strong statistical significance, three social capital factors – networking, interpersonal trust, and institutional trust – provide an explanation for variations in immigrant entrepreneurship across countries.
Originality/value
Although the literature has long pointed out the importance of social capital as a determinant of economic activity, entrepreneurship researchers have focused much attention on the impact of personal, economic, and politico‐administrative factors while leaving social capital factors largely unexamined. Thus, study offers a systematic analysis of the effects of social capital on immigrant entrepreneurship and high‐value added immigrant entrepreneurship at a macro level and discusses policy‐making implications.
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Kent E. Neupert and C. Christopher Baughn
The purpose of this paper is to provide a country‐level consideration of the relationship between entrepreneurship, immigration and education. In contrast to studies that report…
Abstract
Purpose
The purpose of this paper is to provide a country‐level consideration of the relationship between entrepreneurship, immigration and education. In contrast to studies that report on immigration and entrepreneurship in a region or single country, the authors seek to determine whether levels of immigration, and the level of education obtained by the immigrants, are predictive of levels of entrepreneurship activity. A common set of variables and data from developed countries are used to test the hypothesized relationships.
Design/methodology/approach
Using data on 21 OECD countries and five measures of entrepreneurship from the Global Entrepreneurship Monitor project, the authors assess the significance of immigration and education level on entrepreneurial activity using regression analysis.
Findings
The stock of immigrants in a country was found to be predictive of the proportion of that country's population involved in starting and managing a new business (early stage entrepreneurship), as well as the growth expectations held by those early‐stage entrepreneurs. Also, levels of high growth and high growth expectation entrepreneurship were predicted by the proportion of more highly‐educated immigrants.
Originality/value
This study provides national‐level comparative evidence linking entrepreneurial activity to immigration and to the level of education obtained by those immigrants, thereby adding to our understanding of immigration, education and entrepreneurship. The results have implications for the immigration policies of countries seeking to add to their economic base by encouraging entrepreneurship and job creation.
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Menita Liu Cheng, Jianfeng Wu and Jianjun Zhang
The purpose of this paper is to examine corporate political activities (CPA) by migrant entrepreneurs to improve business performance in a host developing country.
Abstract
Purpose
The purpose of this paper is to examine corporate political activities (CPA) by migrant entrepreneurs to improve business performance in a host developing country.
Design/methodology/approach
The authors use a cross‐sectional analysis of 97 Chinese migrant entrepreneurs with business operations in a host developing economy.
Findings
A significant positive relationship was found between formal CPAs and performance.
Research limitations/implications
To further deepen the examination of CPAs, new quantification methodologies have to be applied to properly measure CPA relational strength, investment intensity and diversity.
Practical implications
The results enable migrant entrepreneurs to make a more educated decision on the type of CPAs to pursue and to what intensity.
Social implications
The results could motivate migrant entrepreneurs to adapt rapidly to the host country's formal customs to facilitate socio‐economic adaptation.
Originality/value
This study contributes to literature by examining both formal and informal CPAs, their inter‐relationship and their effects on migrant businesses, which have not been examined previously.
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Giles Andrew Barrett and David McEvoy
The purpose of this paper is to describe and assess the sustainability of an emergent West African business quarter in Manchester, UK. Comparisons are drawn with developments…
Abstract
Purpose
The purpose of this paper is to describe and assess the sustainability of an emergent West African business quarter in Manchester, UK. Comparisons are drawn with developments among other ethnic groups. The research is placed in the context of international literature on ethnic entrepreneurship.
Design/methodology/approach
The research is primarily qualitative, using semi‐structured interviews and conversational life histories with a sample of West African retail businesses and a comparative group of other local businesses. Some use is made of quantitative information from census and other public data sources.
Findings
New West African enterprises appear, over the last few years, to have stabilised the declining retail district of Moston Lane in north Manchester. These new businesses are however confined to few sectors: food stores, hair and beauty salons, cafes, Internet cafes and clothing shops. These developments may parallel the success of longer established retail quarters in Manchester and elsewhere. However, most of the businesses may not survive long, having provided a temporary living, and some entrepreneurial experience, for their owners.
Research limitations/implications
Limited sample size and short time frame make results exploratory rather than definitive. The research provides however a base for future investigations.
Practical implications
The businesses studied provide economic opportunities for some immigrants with limited labour market opportunities.
Social implications
Immigrants are helped to maintain the integrity of their culture through the purchase of appropriate goods and services.
Originality/value
This paper provides the first consideration of a specifically African retail quarter in Britain, adding an additional ethnicity to the roster of identifiable geographic business locations.
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The purpose of this paper is to fill gaps in the literature in entrepreneurship by studying the impact of the Arab culture on the process of starting a new venture. The unique…
Abstract
Purpose
The purpose of this paper is to fill gaps in the literature in entrepreneurship by studying the impact of the Arab culture on the process of starting a new venture. The unique perspective of an entrepreneurial team composed of four Arab immigrants and one non‐Arab business partner is used to study this phenomenon.
Design/methodology/approach
A very participative observation methodology was used to analyse the impact of Arab culture on the creation of a new venture by a multiethnic entrepreneurial team. Because the author is also part of the team, the degree of participation is considered as very high. Although, this kind of methodology has been used before in anthropology and sociology, to the author's knowledge it has never been employed in entrepreneurship. Since long‐term involvement in the field is required by this ethnographic method, it should be noted that the author participated in this entrepreneurial team for two years.
Findings
In this article, culturally‐driven behaviors related to new venture creation were observed and analyzed. The main result lies in the demonstration that the influence of the Arab culture on enterprise creation processes is significant. In general, this impact is similar to the one on management. However, there are some differences which are presented and explained.
Originality/value
Knowledge about Arab entrepreneurs is sparse and even more so regarding the influence of Arab culture on entrepreneurship. This article describes the impact of Arab culture on entrepreneurship processes and contributes to furthering knowledge about the experience of Arab entrepreneurs. It could also help improve public support provided to Arab entrepreneurs.
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The importance of networks with respect to acquiring the resources needed for business creation is one of the main areas within entrepreneurship research. Although there is…
Abstract
Purpose
The importance of networks with respect to acquiring the resources needed for business creation is one of the main areas within entrepreneurship research. Although there is significant literature on the use of social capital and human capital by immigrant entrepreneurs, there is an absence of studies which report the impact of business networks. Therefore, the purpose of this paper is to report the findings of a study examining the process of business network development by immigrant entrepreneurs.
Design/methodology/approach
For each of the 28 entrepreneurs, data were collected using a questionnaire and an interview. In completing the questionnaire, the entrepreneurs were asked to fill out a network audit, followed by a series of multiple‐choice questions. For the responses from the interviews, narrative structuring is used to create a coherent story of the entrepreneurs' experience of business networks.
Findings
This paper presents data characterizing the entrepreneurs, their experience in business networks, and enablers and disablers to the development of a business network.
Practical implications
The outcome is multiple perspectives on the purpose, process, benefits and challenges of developing a business network, and the impact of participation in a formal business network.
Originality/value
The findings which emerge offer insights into the development of business networks by immigrant entrepreneurs.
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The purpose of this paper is to explore the motivations of immigrant entrepreneurs in choosing a host country before immigrating, through a comparison of country distances and…
Abstract
Purpose
The purpose of this paper is to explore the motivations of immigrant entrepreneurs in choosing a host country before immigrating, through a comparison of country distances and economic opportunities.
Design/methodology/approach
Hypotheses borrow from selectivity theory and institutional theory to propose that there will be a negative relationship between distance and the selection of a host county, as well as a positive relationship between host country opportunity and immigrant selectivity. OLS regression was used on secondary data to determine the flow of labor immigrants from source‐destination country dyads.
Findings
Cultural and geographic distances are stronger indicators of where a business person immigrates than the promise of opportunity.
Research limitations/implications
Exclusive use of secondary data precludes potentially important variables from being included in this cross‐sectional study. Future primary, longitudinal research may determine if this is the immigrant's first choice of markets, if the immigrant has family already in the host market and what the motivation was for the first family member to immigrate.
Practical implications
Immigrants may need to seek objective third party information on the opportunities in potential host countries rather than relying on personal networks with asymmetrical information.
Social implications
Policy makers may consider utilizing local immigrant enclaves to communicate host market opportunities to highly desired immigrant talent still residing in the source country.
Originality/value
Entrepreneurial intentions before migrating to a new market have been understudied in the literature and this paper offers a rigorous theoretical and empirical framework for addressing this question.