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The role of social capital in the growth and innovation of immigrant-founded enterprises

Author

Listed:
  • B. Yasanthi Perera
  • Claudia Gomez
  • Judith Y. Weisinger
  • David H. Tobey

Abstract

Immigrant-founded enterprises contribute significantly to host country economies. Research indicates that immigrant entrepreneurs garner benefits from their social capital within co-ethnic communities. Relationship strength, community norms, and the level of community embeddedness seem to influence the potential for developing immigrant-founded businesses. Despite its start-up phase benefits, co-ethnic social capital may impose limitations on these enterprises. We offer a theoretical analysis connecting social ties, and network structure with the ability of immigrant-founded enterprises to innovate. This paper expands our understanding of immigrant-founded enterprises, and informs interested parties of the value of developing the immigrant entrepreneurs' social capital beyond co-ethnic communities.

Suggested Citation

  • B. Yasanthi Perera & Claudia Gomez & Judith Y. Weisinger & David H. Tobey, 2013. "The role of social capital in the growth and innovation of immigrant-founded enterprises," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 13(1), pages 33-49.
    • Handle: RePEc:ids:ijilea:v:13:y:2013:i:1:p:33-49
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