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Do young firms owned by recent immigrants outperform other young firms?

Author

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  • Neville, François
  • Orser, Barbara
  • Riding, Allan
  • Jung, Owen

Abstract

This study compares the performance of new businesses owned by recent immigrants with that of other new firms. It addresses an on-going unresolved discussion in the academic and professional literatures by drawing on a large sample of Canadian business owners whose firms began trading between 2000 and 2004 and using taxation data to track 2004 to 2008 performance. The results provide empirical evidence that young immigrant-owned exporter firms outperformed young domestically-founded firms whether or not they exported; however, immigrant-owned young enterprises that did not export underperformed other young firms. Owner-level factors such as gender, growth intentions and experience also influenced growth performance among young SMEs. The results provide evidence that suggests that immigrants have resources such as access to international networks that provide competitive advantage over non-immigrant owners that export or aspire to export. Not all immigrant business owners, however, are able to lever such advantages. The implications of the findings for research and policy are discussed.

Suggested Citation

  • Neville, François & Orser, Barbara & Riding, Allan & Jung, Owen, 2014. "Do young firms owned by recent immigrants outperform other young firms?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 55-71.
  • Handle: RePEc:eee:jbvent:v:29:y:2014:i:1:p:55-71
    DOI: 10.1016/j.jbusvent.2012.10.005
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    References listed on IDEAS

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    Cited by:

    1. Kraemer-Eis, Helmut & Lang, Frank & Torfs, Wouter & Gvetadze, Salome, 2016. "European Small Business Finance Outlook: June 2016," EIF Working Paper Series 2016/35, European Investment Fund (EIF).
    2. repec:eee:jbvent:v:33:y:2018:i:3:p:241-260 is not listed on IDEAS
    3. repec:krk:eberjl:v:3:y:2015:i:3:p:9-27 is not listed on IDEAS
    4. Lin, Xiaohua & Yang, Xiyan, 2017. "From human capital externality to entrepreneurial aspiration: Revisiting the migration-trade linkage," Journal of World Business, Elsevier, vol. 52(3), pages 360-371.
    5. Naudé, Wim & Siegel, Melissa & Marchand, Katrin, 2015. "Migration, Entrepreneurship and Development: A Critical Review," IZA Discussion Papers 9284, Institute for the Study of Labor (IZA).
    6. Qingfang Wang & Cathy Liu, 2015. "Transnational activities of immigrant-owned firms and their performances in the USA," Small Business Economics, Springer, vol. 44(2), pages 345-359, February.
    7. Jan Brzozowski & Marco Cucculelli & Aleksander Surdej, 2014. "Transnational ties and performance of immigrant entrepreneurs: the case of IT industry in Italy," Mo.Fi.R. Working Papers 98, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    8. Sui, Sui & Morgan, Horatio M. & Baum, Matthias, 2015. "Internationalization of immigrant-owned SMEs: The role of language," Journal of World Business, Elsevier, vol. 50(4), pages 804-814.

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    Keywords

    Immigrants; Exporting; Performance; Growth;

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