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Motivations and Performance Conditions for Ethnic Entrepreneurship

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  • Enno Masurel
  • Peter Nijkamp

Abstract

Ethnic entrepreneurship has become a popular concept in a modern multi-cultural society. This paper seeks to offer an overview of the potential of ethnic entrepreneurship for solving inter alia the structural unemployment problems of ethnic groups in cities. There is a general lack of empirical evidence on this issue in the current literature. The present paper aims to fill this gap by addressing in particular the critical success conditions for ethnic entrepreneurs. The focus of the research is on variations in success across three ethnic groups in the Amsterdam area. By means of structured personal interviews with many ethnic entrepreneurs, a systematic qualitative data base was created. The paper sets out to identify empirically the driving forces for business success, such as education or the role of informal networks. The explanatory framework deployed for the identification of these qualitative success factors for distinct ethnic groups is based on a particular, recently developed artificial intelligence method, viz. rough set analysis. This multidimensional classification approach appears to be able to identify various important factors for the motivation and performance of ethnic enterprises. Two major findings emerge from this investigation: (i) performance conditions vary across ethnic groups, and (ii) informal networks are crucial for business success. Copyright 2000 Gatton College of Business and Economics, University of Kentucky.

Suggested Citation

  • Enno Masurel & Peter Nijkamp, 2002. "Motivations and Performance Conditions for Ethnic Entrepreneurship," Growth and Change, Wiley Blackwell, vol. 33(2), pages 238-260.
  • Handle: RePEc:bla:growch:v:33:y:2002:i:2:p:238-260
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    1. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
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    Cited by:

    1. Juan Pérez Velasco Pavón, 2014. "Economic behavior of indigenous peoples: the Mexican case," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-58, December.
    2. Mediha Sahin & Alina Todiras & Peter Nijkamp & Enno Masurel, 2012. "Economic performance of migrant entrepreneurs in the high-tech sector: design and application of the GALAXY model," Chapters,in: Migration Impact Assessment, chapter 7, pages 227-260 Edward Elgar Publishing.
    3. Nijkamp, P. & Stough, R. & Sahin, M., 2009. "Impact of social and human capital on business performance of migrant entrepreneurs - a comparative dutch-us study," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Alessandro Arrighetti & Daniela Bolzani & Andrea Lasagni, 2014. "Beyond the enclave? Break-outs into mainstream markets and multicultural hybridism in ethnic firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(9-10), pages 753-777, December.
    5. Geenhuizen, Marina van & Nijkamp, Peter, 2005. "Death of distance and agglomeration forces of firms in the urban e-economy : an artificial intelligence approach using rough set analysis," Serie Research Memoranda 0007, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    6. Barak-Bianco, Anda & Raijman, Rebeca, 2015. "Asylum seeker entrepreneurs in Israel," economic sociology_the european electronic newsletter, Max Planck Institute for the Study of Societies, vol. 16(2), pages 4-13.
    7. Tüzin Baycan-Levent & Peter Nijkamp, 2009. "Characteristics of migrant entrepreneurship in Europe," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(4), pages 375-397, July.
    8. Tüzin Baycan-Levent & Peter Nijkamp, 2010. "Migrant Entrepreneurship in a Diverse Europe: In Search of Sustainable Development," Chapters,in: The Sustainability of Cultural Diversity, chapter 16 Edward Elgar Publishing.
    9. Geyer, M. & Coetzee, H.C. & Plessis, D. du & Donaldson, R., 2011. "Recent business transformation in intermediate-sized cities in South-Africa," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Andrea GANZAROLI & Ivan DE NONI, 2014. "The Role of Community Entrepreneurship and Institutional Completeness in the Rising of the Chinese Regional Enclave in Lombardy," Departmental Working Papers 2014-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Giuliano Guerra & Roberto Patuelli, 2014. "The influence of role models on immigrant self-employment: a spatial analysis for Switzerland," International Journal of Manpower, Emerald Group Publishing, vol. 35(1/2), pages 187-215, May.
    12. Peter Nijkamp & Mediha Sahin & Tüzin Baycan-Levent, 2010. "Migrant Entrepreneurship And New Urban Economic Opportunities: Identification Of Critical Success Factors By Means Of Qualitative Pattern Recognition Analysis," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(4), pages 371-391, September.
    13. A. Arrighetti & D. Bolzani & A. Lasagni, 2013. "Motivazioni Imprenditoriali E Percorsi Evolutivi Dell’Impresa Etnica," Economics Department Working Papers 2013-EP03, Department of Economics, Parma University (Italy).
    14. Mediha Sahin & Peter Nijkamp & Roger Stough, 2011. "Impact of urban conditions on firm performance of migrant entrepreneurs: a comparative Dutch–US study," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 661-689, June.
    15. Ilhan-Nas, Tulay & Sahin, Kader & Cilingir, Zuhal, 2011. "International ethnic entrepreneurship: Antecedents, outcomes and environmental context," International Business Review, Elsevier, vol. 20(6), pages 614-626.
    16. repec:zbw:espost:172489 is not listed on IDEAS
    17. Tüzin Baycan-Levent & Peter Nijkamp, 2011. "Migrant Female Entrepreneurship: Driving Forces, Motivation and Performance," Chapters,in: New Directions in Regional Economic Development, chapter 10 Edward Elgar Publishing.
    18. Daniel Arribas-Bel & Karima Kourtit & Peter Nijkamp, 2013. "Socio-cultural Diversity and Urban Buzz," Tinbergen Institute Discussion Papers 13-110/VIII, Tinbergen Institute.
    19. Jacques Poot, 2007. "Demographic Change and Regional Competitiveness: The Effects of Immigration and Ageing," Population Studies Centre Discussion Papers dp-64, University of Waikato, Population Studies Centre.
    20. Peter Nijkamp & Mediha Sahin & Tüzin Baycan-Levent, 2009. "Migrant Entrepreneurship and New Urban Economic Opportunities," Tinbergen Institute Discussion Papers 09-025/3, Tinbergen Institute.
    21. Aki Harima, 2015. "Motivation of Japanese Descending Diaspora Entrepreneurs (Motywacja przedsiebiorcow diaspory japonskiej bedacych potomkami emigrantow)," Research Reports, University of Warsaw, Faculty of Management, vol. 2(19), pages 22-36.
    22. repec:gam:jsusta:v:9:y:2017:i:9:p:1584-:d:111039 is not listed on IDEAS
    23. Catherine Harris & Dominique Moran & John R. Bryson, 2015. "Polish Labour Migration to the UK: Data Discrepancies, Migrant Distributions, and Indicators of Entrepreneurial Activity," Growth and Change, Wiley Blackwell, vol. 46(2), pages 196-217, June.
    24. Raluca Grosu, 2015. "Dynamics of Immigrant Entrepreneurship in Romania," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 172-182.
    25. Nijkamp, Peter, 2009. "Entrepreneurship, Development, and the Spatial Context Retrospect and Prospect," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).

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