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Differences between First-Generation and Second-Generation Ethnic start-ups : implications for a new support policy

Author

Listed:
  • Masurel, Enno

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Nijkamp, Peter

Abstract

This paper studies to what extent first-generation ethnic entrepreneurs show a different motivation to start their own business, in comparison with their second-generation counterparts. Our research project contains empirical fieldwork among Turkish entrepreneurs in the Greater Amsterdam area. First-generation ethnic entrepreneurs are more motivated by discrimination, problems with the transferability of their diplomas and obtaining status, compared with their second-generation counterparts. The latter group derives more motivation trom blocked promotion to start their own business. We found no differences between both groups In their motives tor starting up, i.e. unemployment; need tor achievement; making use of market opportunities; striving for independence; and using their own special talents. The reasons tor finding fewer differences than expected between the two generations are discussed extensively in our paper. Having shown what these differences are between the two generations, we may have laid the basis tor a new support policy tor ethnic entrepreneurs. This new support policy is based on the need to pay attention to both the motives tor starting up business and the necessary preparatory activities. This contribution should be translated into a number of projects and programmes, as ethnic entrepreneurship is a multifaceted phenomenon with at least as many sides as there are ethnic groups.

Suggested Citation

  • Masurel, Enno & Nijkamp, Peter, 2003. "Differences between First-Generation and Second-Generation Ethnic start-ups : implications for a new support policy," Serie Research Memoranda 0024, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:2003-24
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    2. Baycan, Tüzin & Sahin, Mediha & Nijkamp, Peter, 2012. "The urban growth potential of second-generation migrant entrepreneurs: A sectoral study on Amsterdam," International Business Review, Elsevier, vol. 21(6), pages 971-986.
    3. José A Belso Martínez, 2009. "Entrepreneurship Policies and New Business Performance and Growth: An Empirical Analysis Based on Manufacturing Industries," Environment and Planning C, , vol. 27(2), pages 195-215, April.
    4. Siwale, Juliana & Gurău, Călin & Aluko, Olu & Dana, Léo-Paul & Ojo, Sanya, 2023. "Toward understanding the dynamics of the relationship between religion, entrepreneurship and social change: Empirical findings from technology-savvy African immigrants in UK," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    5. Ibrahim, Gamal & Galt, Vaughan, 2011. "Explaining ethnic entrepreneurship: An evolutionary economics approach," International Business Review, Elsevier, vol. 20(6), pages 607-613.
    6. Aytul Ayse OZDEMIR, 2010. "Potansiyel Girisimci Olan Kadinlarin Motivasyon Faktorleri ve Eskisehir’de Bir Arastirma," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 10(1), pages 117-139.
    7. Cat-My Dang & Aki Harima, 2020. "Dual Embeddedness and Entrepreneurial Activities of Second-Generation Ethnic Entrepreneurs: Multiple Case Studies with Vietnamese Entrepreneurs in Germany," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 84-113, January.
    8. Kourtit, Karima & Nijkamp, Peter, 2012. "Strangers on the Move: Ethnic Entrepreneurs as Urban Change Actors," European Review, Cambridge University Press, vol. 20(3), pages 376-402, May.
    9. Baycan-Levent, Tuzin & Nijkamp, Peter & Sahin, Mediha, 2007. "New Orientations in Ethnic Entrepreneurship: Motivation, Goals and Strategies of New Generation Ethnic Entrepreneurs," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Pruthi, Sarika & Tasavori, Misagh, 2022. "Staying in or stepping out? Growth strategies of second-generation immigrant entrepreneurs," International Business Review, Elsevier, vol. 31(5).
    11. Craig M Parker & Janice Redmond & Mike Simpson, 2009. "A Review of Interventions to Encourage SMEs to Make Environmental Improvements," Environment and Planning C, , vol. 27(2), pages 279-301, April.
    12. Susan Bagwell, 2006. "UK Vietnamese Businesses: Cultural Influences and Intracultural Differences," Environment and Planning C, , vol. 24(1), pages 51-69, February.
    13. Baycan-Levent, T. & Nijkamp, P. & Sahin, M., 2008. "External orientation of second generation migrant entrepreneurs : a sectoral study on Amsterdam," Serie Research Memoranda 0015, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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