The urban growth potential of second-generation migrant entrepreneurs: A sectoral study on Amsterdam

A rise in second-generation migrant entrepreneurs and an increasing focus on modern economic sectors have become new trends in migrant entrepreneurship in recent years. Although traditional sectors are still the most popular among the first-generation migrant entrepreneurs, because of the increasing pressure and their high competitiveness in traditional areas, nowadays new market niches are rapidly developing. While the first generation has more often become active in new areas such as the producer services sector which includes finance, insurance, real estate and business-related professional services, the second generation has contributed to the emergence of new areas of immigrant business activity such as the ICT sector and the creative industries.Against this background, this study focuses on the external orientations of the second-generation migrant entrepreneurs by addressing in particular the way – and the extent to which – the choice for entrepreneurship is made by higher-educated young ethnic generations. This is a new field of entrepreneurship research in many European countries. The empirical data of our study is based on in-depth personal interviews held in the first half of 2007. We employed a recently developed multivariate qualitative classification method, coined rough set analysis, in order to investigate the motivation, goals and strategies of second generation Turkish entrepreneurs in the ICT and the financial services sector in the Netherlands.The results of our study show that the second generation Turkish entrepreneurs in the Netherlands have started to be involved in new and non-traditional sectors like ICT and financial services sectors. The motivation and driving forces of the second-generation Turkish entrepreneurs are stemming from both their personal characteristics shaped by their higher educational level and their previous working experience as an employee or entrepreneur in the same sector. The demand for and a gap in the sector as well as the growing and promising structure of the sector play also an important role in pulling the second generation Turkish immigrants to become entrepreneur in these new sectors.     

An exploratory study of characteristics and attributes of Turkish entrepreneurs: A cross-country comparison to Irish entrepreneurs

There has been limited research on entrepreneurship in Turkey. Given the fact that globalization has rapidly been increasing, that foreign direct investment is spreading throughout the world, and that more and more foreign investors are seeking partners in emergent markets such as Turkey. One important reason for the interest in Turkish entrepreneurs is because they have many characteristics that are similar to entrepreneurs in Western markets. Even if there are many differences between Western entrepreneurs and Turkish entrepreneurs, it would be valuable to compare the characteristics of Turkish entrepreneurs with others. Moreover, a few cross-cultural studies have examined the similarities among entrepreneurs in various nations. Ireland and Turkey have many striking similarities despite varying cultural backgrounds. Hence, this empirical research was undertaken to investigate the characteristics and attributes of Turkish entrepreneurs and compare them to Irish entrepreneurs. The research design in this study focused on 161 Turkish entrepreneurs who were randomly selected from a list (obtained from local Chamber of Commerce) and interviewed using a structured questionnaire. The questions assessed relevant areas, such as demographic and business information, motivations, entrepreneurial characteristics, business problems, personality characteristics, and management skills. Information on the Irish entrepreneurs was incorporated from a published study. Overall, in terms of entrepreneurial characteristics, Turkish entrepreneurs displayed surprisingly similar characteristics to the Irish. The implications of this study are discussed along with some recommendations.     

Deciding to export: An exploratory study of Singaporean entrepreneurs

This paper confirms a mapping between a taxonomy of entrepreneurs and what triggered Singaporeans to become exporters. The study involved interviews with 47 new exporters based in Singapore. Entrepreneurs were classified as either ‘opportunity seeking’ or ‘reactive’. Export triggers were either ‘pull’, negative ‘push’, or positive ‘push’. We find that those who were opportunity seeking at start-up were more likely to have responded to export ‘pull’ forces. It was rare indeed for a reactive founder to have been ‘pulled’ into exporting. Among this group of entrepreneurs, ‘push’ forces dominated the decision to export. The paper concludes with some implications for policy targeting and suggestions for further research.     

Determinants of required return in venture capital investments: a five-country study

Using two complementary theoretical perspectives, we develop hypotheses regarding the determinants of the return required by venture capitalists and test them on a sample of over 200 venture capital companies (VCCs) located in five countries. Consistent with resource-based theory, we find that early-stage specialists require a significantly higher return than other VCCs when investing in later-stage ventures. Consistent with financial theory, we find that acquisition/buyout specialists require a significantly lower return than other VCCs when investing in expansion companies. Furthermore, in comparison to specialists, highly stage-diversified VCCs require a significantly higher return for early-stage investments. Independent VCCs require a higher rate of return than captive or public VCCs. In general, higher required returns are associated with VCCs who provide more intensity of involvement, have shorter expected holding period of the investment, and being located in the US or UK (in comparison to those in France, Belgium, and The Netherlands).     

Islam and socially responsible business conduct: an empirical study of Dutch entrepreneurs

This paper explores the relationship between the Islamic religion and the level of socially responsible business conduct (SRBC) of Islamic entrepreneurs. The authors find that the common ideas of SRBC correspond with the view of business in Islam, although there are also some notable differences. They also find that Muslim entrepreneurs attach a higher weight to specific elements of SRBC than do non-Muslims. However, they also find that Muslims are less involved with applying SRBC in practice than non-Muslim managers.     

Determinants of the satisfaction of firms with the competencies of university students: a Spanish case study

Spanish universities pay little attention to business demands with regard to workforce training and to the research that has been developed in this area. The present study analyses the effect of various factors on firms’ satisfaction with the education provided by universities. The factors include the content of the student's major subject of study and social, methodological and participation skills. The data were obtained from a survey of businesses. Although the results obtained show that all of the factors have an impact on overall satisfaction, they are not of equal importance. University managers may be able to use the information obtained from this study as a basis for designing and implementing action that might improve employers’ level of satisfaction, which has considerable positive consequences. Moreover, the study's methodology could be applied to other outputs of universities, such as the research performed.     

Nations of entrepreneurs: A social capital perspective

This research examined the effects of social capital on entrepreneurial opportunity perception and weak tie investment using individual-level data from the Global Entrepreneurship Monitor linked with national-level data on social capital. Consistent with a social capital perspective, this study found that a resident of a country with higher generalized trust and breadth of formal organizational memberships was more likely to perceive entrepreneurial opportunities. A resident of a country with higher generalized trust was also more likely to invest in an entrepreneur with whom he or she had a weak personal tie than was a resident of a country with lesser generalized trust.     

Entrepreneurship ecosystems and women entrepreneurs: a social capital and network approach

This study investigates the effects of venture typology, race, ethnicity, and past venture experience on the social capital distribution of women entrepreneurs in entrepreneurial ecosystems. Social network data from two municipal ecosystems in Florida, USA (Gainesville and Jacksonville), suggest that network connectivity and the distribution of social capital are significantly different for men and women entrepreneurs. This difference is contingent on the venture type. Male entrepreneurs show higher comparative scores of bridging social capital in aggressive- and managed-growth venture networks, while women entrepreneurs surpass their male counterparts’ bridging capital scores in lifestyle and survival venture networks. Lastly, experienced women entrepreneurs that self-identified as white showed a higher degree of network connectivity and bridging social capital in the entrepreneurial ecosystem than less experienced non-white female entrepreneurs. Implications for entrepreneurship practice and new research paths are discussed.

     

Start-up and hiring practices of immigrant entrepreneurs: An empirical study from an evolutionary psychological perspective

Strong social ties embedded in ethnic communities of immigrant populations have been considered key assets for immigrant entrepreneurs. However, little research has been done on how biological kinship and the biological theories of altruism influence the behavior of ethnic entrepreneurs. In this study, we have applied a neo-Darwinian evolutionary theory of kinship to examine adaptive functions of kin and ethnic altruism in business start-up and hiring practices of Korean immigrant entrepreneurs in the United States. We confirmed that the patterns of help received by Korean entrepreneurs for business start-ups were congruent with an evolutionary perspective on altruism. However, the results for hiring patterns suggested that customer ethnicity trumped kin and co-ethic interests. We close by offering suggestions for future research.     

Trade liberalization, product variety and growth in a small open economy: a quantitative assessment

We develop a numerical growth model that quantifies the welfare effects of trade liberalization. Additional intermediate input varieties provide the engine of growth and dramatically magnify the welfare gains from trade liberalization. In our central model, a 10% tariff cut leads to a 10.6% estimated gain in Hicksian EV. Systematic sensitivity analysis shows that there is virtually no chance of a welfare increase less than 3%, but a 6.6% chance of a welfare gain greater than 18%. We show that complementary reforms are crucial to fully realize the potential gains from the trade reform.     

Determinants of firm-level export performance: a case study of Indian textile garments and apparel industry

Drawing on international trade and industrial organisation theories, this paper identifies variables affecting (a) the export decision function, i.e. to export or sell in domestic market, and (b) the export performance function, i.e. the share of exports in output. These functions are estimated for Garment and Apparel producing units in Delhi. The form of business organisation, reflecting access to capital, turns out to be a key determinant in both functions. The estimated marginal impact of identified variables (scale and share of sales expenses) on the probability of exporting in an estimated Probit model declines sharply when moving from single proprietorship to partnership and on to limited companies. On the other hand, every single determinant (scale, share of wages, share of sales expenses and technical efficiency) has been found to have an increasing marginal impact on export performance in an estimated Tobit model when moving across the three forms of business organisation. Empirical results suggest two policy changes to boost export performance. First, given the importance of scale for exports, the existing policy of reserving garments and apparel for exclusive production in small-scale units needs to be scrapped. Simultaneously, it is also necessary to amend current labour legislation applicable to large-scale factory units, as it introduces labour market inflexibility and hence serves as an impediment to the expansion of existing units and the entry of new units.     

Inclusive entrepreneurship: A call for a shared theoretical conversation about unconventional entrepreneurs

Entrepreneurship has the potential to be an inclusive space comprising many types of conventional as well as unconventional entrepreneurs. In this essay we will argue that when it comes to unconventional entrepreneurs—ranging from refugee entrepreneurs and entrepreneurs with a physical or cognitive disability, to elder entrepreneurs, former convict entrepreneurs, and many others—there are important questions we are not asking because we tend to look at each subgroup in isolation. Our central message is that looking for shared wisdom across various groups of unconventional entrepreneurs may facilitate a shared theoretical conversation that aids the transfer of knowledge, prevents silos and the unnecessary reinventing of the wheel, boosts the field's appeal and critical mass, and facilitates a broader exchange of ideas. To facilitate that conversation, we identify who unconventional entrepreneurs are; identify obstacles to a common theoretical conversation and how these obstacles could be overcome; outline a set of common theoretical themes that apply across various groups of unconventional entrepreneurs; and show how further theorizing unconventional entrepreneurs could challenge the community to reach beyond our existing knowledge horizons to develop pioneering entrepreneurship research.     

Conflicts between entrepreneurs and investors: the impact of perceived unethical behavior

This paper examines the impact of perceived unethical behavior by entrepreneurs, angel investors and venture capitalists on their conflict process. For this purpose, we use an embedded case study design to provide a diversity of perspectives on the topic at hand. From the eye of the beholder, i.e. investor, entrepreneur or both, 11 conflict situations were analyzed for any perceived unethical behavior. Based on findings from within- and cross-case analysis, we propose that perceived unethical behavior among venture partners triggers conflicts between them through increased fault attribution or blaming. Further, we propose that perceived unethical behavior affects venture partners’ choice of conflict management strategy and increases the likelihood of conflict escalation and of conflict having a negative partnership outcome such as failure or another form of involuntary exit. As such, this paper contributes to the entrepreneurship literature by addressing calls for more research on the darker sides of investor–investee relationships.     

Determinants of the corporate identity construct: a review of the literature

Corporate identity has received significant attention from both academics and practitioners in the last 25 years. Despite many articles written in this area a definitive construct of corporate identity and its measurements does not yet exist. The objective of this paper is therefore to provide a review of the literature on the corporate identity construct and its components and also to present the academic and managerial implications of this study.     

Location choice of academic entrepreneurs: Evidence from the US biotechnology industry

Where knowledge-based firms are located is important because entrepreneurship, firm creation and innovation are typically associated with regional economic development, wealth creation and increased employment. In this paper we examine where academic entrepreneurs locate their firms. We begin by developing a theoretical model that examines the location choice of the academic entrepreneur within the standard utility maximization theory. Academic entrepreneurs are assumed to maximize their utility by allocating their efforts between academic and entrepreneurial pursuits which, in turn, determine their future streams of income and end-period wealth. Optimal allocation turns out to be a function of both personal and external factors that condition the relevant payoffs and such factors can be empirically observed. We then use several candidate explanatory variables to examine those factors that may influence the firm location choice for 187 biopharmaceutical firms started by 275 academic entrepreneurs in the US. From our empirical analysis we find that location-specific factors such as proximity to certain knowledge assets and to the funding venture capital firms, affect the firm location choice of academic entrepreneurs. Nevertheless, entrepreneur-specific characteristics, such as their age, seem to dominate the choice of firm location.     

Israeli women entrepreneurs: An examination of factors affecting performance

This article examines individual factors influencing performance of 200 Israeli women-owned businesses. Whereas research on women entrepreneurs is extensive in developed countries, especially in the United States and Europe, there are comparatively few studies of performance of women-owned businesses in non-OECD countries. There is evidence that social structures (work, family, and organized social life) vary among developed and developing countries as these relate to women entrepreneurs. However, these differences have not been considered as they may relate to theories explaining performance of women-owned businesses. The extent to which existing theories are useful in the context of non-OECD countries is of increasing importance as women in these countries are assuming a greater role in enterprise creation and economic development as a result of radical geopolitical and economic policy changes worldwide.In Israel, women suffer from occupational segregation and typically earn less money than their male counterparts, despite a generally high level of education. Entrepreneurship offers a vehicle for Israeli women to achieve economic parity. Approximately 5.1% of Israeli women are self-employed (compared with 15% of Israeli men) of the 816,800 Israeli working women. This study is the first systematic investigation of performance variation among Israeli women entrepreneurs, thereby contributing to our understanding of women's entrepreneurship in non-OECD countries.Five theoretical perspectives explain performance: individual motivations and goals; social learning (entrepreneurial socialization); network affiliation (contacts and membership in organizations); human capital (level of education, business skills); and environmental influences (location, sectoral participation, and sociopolitical variables). Each of these perspectives is associated with empirical work showing relationships between these individual level factors and performance. Three questions directed this study: (1) Which factors influence the performance of Israeli women entrepreneurs? (2) Which factors explain any variance in performance among businesses established by Israeli women entrepreneurs? (3) How similar are these explanatory factors to those found in other countries?A sample of 220 Israeli women business-owners responded to a survey instrument originally composed by Hisrich and Brush (1982, 1985) that was translated into Hebrew and adapted to the particular conditions of the Israeli population. A majority of the questionnaires was distributed at meetings of professional associates of women entrepreneurs and returned by mail, but one-fourth was distributed to women who were not members of any professional association. No significant differences were found between the respondents who were members or non-members of associations. Reliability testing showed alpha coefficients of 0.65 and higher for scaled questions, which is acceptable for survey data. Statistical analyses, including Pearsons's correlations and multiple regressions, examined relationships between factors identified from theoretical perspectives and performance, which was measured by profitability, income, size (number of employees), and revenues.Demographic variables were examined, and the age of the woman entrepreneur's children was significantly related to profitability (p < .01). The majority of Israeli women entrepreneurs are married and became entrepreneurs after their children were grown. This is consistent with the strong family orientation prevalent in the Israeli culture and the existence of institutional arrangements that support the working mother model as long as she gives priority to family responsibilities.Of the five theoretical perspectives, results showed network affiliation, motivation, human capital, and environmental factors affected different aspects of performance, whereas social learning theory or existence of a role model had no significant effect on performance outcomes. Network affiliation was significantly related to profitability (p < .001), and the use of outside advisors also was related to revenue. In contrast, participation in multiple networks was negatively related to revenue, income, and size of the business.Motivations showed a strong relationship to performance. Factor analysis identified three basic groups of motives: achievement, independence, and economic necessity. Similar to findings in other countries, achievement motives were highly related to personal income, whereas economic necessity was significantly related to both profitability and revenue.Analyses of human capital variables showed mixed results; education level, areas of study, and previous entrepreneurial experience had no effect on previous experience. The fact that this population was highly educated (51% had university degrees) may have impacted on this result. Consistent with prior research findings, previous experience in the industry had a direct and significant effect on performance (p < .001). Previous salaried employment and involvement in the creation of a business were significantly correlated with sales and number of employees. Results also showed that indexes of women entrepreneurs' business skills (obtaining financing, budgeting, labor management, and planning ahead) were highly correlated with revenues (p < .01). Regression analysis showed the business skill index significantly related to profitability (p < .01). Environmental factors were significantly related to performance in that the sectoral affiliation (service versus manufacturing) was related to revenues and employees, but not to profitability and income.This study supports previous research from the United States and Europe on women entrepreneurs, which found that performance is related to previous industry experience, business skills, and achievement motivation. However, the differential effects of network affiliations was significantly more important for women entrepreneurs in Israel. Affiliation with a single network was highly related to profitability, whereas involvement in multiple networks was detrimental to both revenues and the number of employees. These findings imply that to perform well, Israeli women entrepreneurs should gain related industry experience, develop business skills, and seek to achieve success. Most importantly, commitment to a single network for support and advice is better than a loose alignment with many support groups.This research has implications for studies of women entrepreneurs in other non-OECD as well as developing countries. In countries such as Russia or China, anecdotal evidence shows self-employment offers women an opportunity to improve their economic status as more capitalistic policies are adopted. The extent to which individual factors found important in this study, such as business skills, motivations, previous industry experience, and network affiliation, affect performance in these countries is a topic for future investigation. This study suggests that individual factors affect performance differentially as a consequence of variations in social structures, work, organized social life, and family. Future research should explore the extent to which this is the case. Examination of aspects of organizational strategies and government policies as these influence performance is another topic for future study.     

Determinants of a lasting purchase: The case of the tattoo patron

Evidence suggests that both cognitive and emotive factors elucidate consumer decision processes; yet, research exploring such factors jointly (i.e., a dual-process approach) as antecedents of high-involvement, lasting purchases is lacking. To address this paucity, we developed two studies, each with a unique dual-process model for explaining consumers’ intention to get a tattoo. Study 1 explores anticipated regret about getting a tattoo, emotional response before and now regarding a tattoo purchase, and self-expression via tattoo acquisition. Study 2 examines perceived trust in the tattoo artist, self-esteem, attitude toward art paintings, and age as determinants of intention to get a tattoo. Data collected for testing these models support dual-process theory in the tattoo context. Implications and future research directions are offered.     

Buddhist entrepreneurs and new venture performance: the mediating role of entrepreneurial risk-taking

Small Business Economics - This study examines how Buddhism as an Eastern religion influences new venture performance. We propose that Buddhist values and associations can bring unique benefits to...