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The purpose of this paper is to examine the key differences between first- and second-generation immigrant entrepreneurs in their path to entrepreneurship. The aim of the study is to better understand entrepreneurial motivations amongst immigrants by comparing first- and second-generation entrepreneurs in their motivation for business entry, reliance on co-ethnic market, use of social and financial capital, business planning and marketing practices.

Using an interpretivist approach and a qualitative design, this study comprises 20 in-depth interviews with first- and second-generation Turkish entrepreneurs (TEs) in Melbourne, Australia. Turks in Australia were chosen because of their high level of entrepreneurial activity. In order to uncover deep-seeded motivations, participants were interviewed in a face-to-face format guided by a semi-structured interview guide.

The second-generation TEs were distinctively different from their first-generation counterparts in motivation for business entry, business establishment and use of ethnicity. The analysis shows that although the generations differ in their approach to business establishment, they both appear to be drawn to entrepreneurship based on “pull factors”. This is in contrast with previous literature suggesting that first-generation immigrant entrepreneurs were motivated by “push factors”.

This paper suggests that both first- and second-generation immigrant entrepreneurs are “pulled” into entrepreneurship voluntarily. While the first-generation entrepreneurs seem to be motivated/pulled by financial reasons, the second generation are motivated by opportunity recognition, status and ambition. Nevertheless, a lack of trust in government support agency is found within both generations. Thus, outreach activities towards entrepreneurial immigrant communities may have positive effects for the economy as well as in the integration of ethnic enclaves.