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Ethnic diverse and financing choices affecting of business survival: a case study of New Zealand small- and medium-sized enterprises

Author

Listed:
  • Geeta Duppati
  • Frank Scrimgeour
  • Surachai Chancharat
  • Ploypailin Kijkasiwat

Abstract

Purpose - This paper aims to investigate how ethnic diversity and finance options impact the survival of small- and medium-sized enterprises (SMEs) in New Zealand. Design/methodology/approach - This study incorporates survey data and secondary data from the public domain. The surveys were conducted across six sectors of the economy categorised into four main ethnic groups involving six nationalities. This study adopts regression analysis using Probit, Logit and linear probability. Findings - The financing choices of the entrepreneurs were consistent with pecking-order theory. The evidence suggests that information asymmetries are prevalent in New Zealand, as SMEs’ owners perceive significant risk from expanding businesses internationally. There is no relationship between ethnicity bias and the survival of firms. Originality/value - This study provides a contribution to the literature on factors relating to business survival and guides the policymakers to use the benefits of potential factors to increase the survival rate of SMEs.

Suggested Citation

  • Geeta Duppati & Frank Scrimgeour & Surachai Chancharat & Ploypailin Kijkasiwat, 2021. "Ethnic diverse and financing choices affecting of business survival: a case study of New Zealand small- and medium-sized enterprises," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 26(51), pages 160-174, May.
    • Handle: RePEc:eme:jefasp:jefas-11-2019-0270
    DOI: 10.1108/JEFAS-11-2019-0270
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    Cited by:

    1. Muh. Sabir Mustafa & Ubud Salim & Nur Khusniyah Indrawati & Siti Aisjah, 2023. "Implementation of Hulontalo Ethnic Values in Small and Medium Businesses (SMEs) Financial Decision-Making," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 139-157.

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