Financial Funding Of Immigrant Businesses
AbstractThis study investigates differences in financial funding between immigrant and non-immigrant businesses and delineates factors influencing financial funding of immigrant businesses. Data for the study were collected in Israel between 2000 and 2005. By combining convenient and snowball samples, 214 native Israelis and 153 FSU immigrant entrepreneurs answered a questionnaire. We classified financial sources for immigrant businesses according to their affiliation to the ethnic community, and according to their relation to official financial institutions. Our study revealed that the scope of funding of immigrant businesses is significantly smaller than that of non-immigrant businesses. Immigrant entrepreneurs are more likely to finance their businesses from informal sources but they use fewer loans from family and friends than non-immigrant entrepreneurs. We found that immigrant entrepreneurs who deal with co-ethnic clients do not use more ethnic sources of capital for financing their businesses: the share of co-ethnic clients does not influence the ratio of ethnic financial sources for both setting up and expanding immigrant businesses. Our study revealed that governmental support in the terms of designated loans is the most salient factor influencing financial funding of immigrant businesses. The results suggest important implications for public policy.
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Bibliographic InfoArticle provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.
Volume (Year): 13 (2008)
Issue (Month): 02 ()
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Web page: http://www.worldscinet.com/jde/jde.shtml
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- Jock Collins, 2003. "Cultural diversity and entrepreneurship: policy responses to immigrant entrepreneurs in Australia," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(2), pages 137-149, January.
- Tengeh, RK & Ballard, HB & Slabbert, AS, 2012. "Do immigrant-owned businesses grow financially? An empirical study of African immigrant-owned businesses in the South Africa," MPRA Paper 40610, University Library of Munich, Germany.
- Xiaohua Yang & Elly Ho & Artemis Chang, 2012. "Integrating the resource-based view and transaction cost economics in immigrant business performance," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 753-772, September.
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