The low participation of urban migrant entrepreneurs: reasons and perceptions of weak institutional embeddedness
The present paper addresses the lack of institutional collaboration among urban ethnic (or migrant) firms as a reason for their low innovation profile. This lack is present in various forms of institutional business cooperation, but here we focus in particular on franchising. Such weak collaborative embeddedness is noteworthy, given the fact that franchising offers for small and medium-sized enterprises (SMEs) an important means to compete better. Poor communication, a low chance to be accepted by the external party, and economic market factors appear to be important reasons why ethnic entrepreneurs do not join franchise organizations. The low chance of acceptance is primarily reflected in the entrepreneurs’ perception of their unfavorable market conditions, but in addition there are other reasons for low participation which can be rectified. From our research, general lessons can be derived which are applicable also to other situations in which ethnic entrepreneurs may also be less inclined to join institutional cooperative systems. With these lessons in mind, the competitive and innovative potential of ethnic entrepreneurs can be improved.
|Date of creation:||2009|
|Contact details of provider:|| Web page: http://www.feweb.vu.nl|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hoy, Frank & Shane, Scott, 1998. "Franchising as an entrepreneurial venture form," Journal of Business Venturing, Elsevier, vol. 13(2), pages 91-94, March.
- Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer.
- Borooah, Vani K & Hart, Mark, 1999. "Factors Affecting Self-Employment among Indian and Black Caribbean Men in Britain," Small Business Economics, Springer, vol. 13(2), pages 111-129, September.
- Jan de Kok & Milan Jansen & Sten Willemsen & Judith van Spronsen, 2003. "Immigrant entrepreneurship in the Netherlands," Scales Research Reports H200304, EIM Business and Policy Research.
- 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.
- Michael, Steven C., 1996. "To franchise or not to franchise: An analysis of decision rights and organizational form shares," Journal of Business Venturing, Elsevier, vol. 11(1), pages 57-71, January.
- Stanworth, John & Curran, James, 1999. "Colas, burgers, shakes, and shirkers: Towards a sociological model of franchising in the market economy," Journal of Business Venturing, Elsevier, vol. 14(4), pages 323-344, July.
- Mervyn K. Lewis & Latifa M. Algaoud, 2001. "Islamic Banking," Books, Edward Elgar Publishing, number 1488.
- Giles A. Barrett & Trevor P. Jones & David McEvoy, 1996. "Ethnic Minority Business: Theoretical Discourse in Britain and North America," Urban Studies, Urban Studies Journal Limited, vol. 33(4-5), pages 783-809, May.
- Michael, Steven C., 2003. "First mover advantage through franchising," Journal of Business Venturing, Elsevier, vol. 18(1), pages 61-80, January.
When requesting a correction, please mention this item's handle: RePEc:vua:wpaper:2009-40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (R. Dam)
If references are entirely missing, you can add them using this form.