Advertisement

The Low Participation of Urban Migrant Entrepreneurs: Reasons and Perceptions of Weak Institutional Embeddedness

  • Enno MasurelEmail author
  • Peter Nijkamp
Chapter
Part of the Advances in Spatial Science book series (ADVSPATIAL)

Abstract

Despite the large influx of ethnic minority (or migrant) entrepreneurs of various origins in the Dutch society, members of this group rarely join institutional collaborative business organizations. This is surprising, as institutional embeddedness and anchoring is usually seen as a powerful organizational mechanism for small and medium-sized enterprises (SMEs). In this paper we focus on franchise organizations, which ethnic entrepreneurs hardly ever join. It is, in contrast, noteworthy that the degree of mutual collaboration among native Dutch firms in the SME sector is generally very high. The motivation for our study stems from the fact that it is, from a social cohesion point of view, important to understand why a certain group within society acts very differently from the rest of society. Furthermore, it is also important to know whether this deviation is temporary or structural, and whether it will be solved by itself over time or only with external assistance (Davidsson 2002). Much has been written about the attitude and behavior of ethnic entrepreneurs in Western economies, mostly from a sociological point of view. However, to the best of our knowledge, the subject of this paper, viz. the lack of institutional collaboration in the form of franchise organizations among ethnic small firms, has never been dealt with till date. In this paper, we investigate the reasons for the weak institutional collaboration among small ethnic firms, by means of an empirical analysis based on semi-structured interviews with 40 ethnic (Turkish) entrepreneurs in Amsterdam (the Netherlands). Turks, who have already lived in large groups in the Netherlands since the 1960s, appear to have a strong inclination to engage in entrepreneurial activities, which means that this group is particularly relevant for the present study. The retail sector, with its low entry barriers, is by definition an important sector in this context.

Keywords

Retail Sector Institutional Collaboration Ethnic Business Ethnic Entrepreneur Migrant Entrepreneur 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Notes

Acknowledgements

The authors gratefully acknowledge the fieldwork by Kemal Tasdelen and the data analysis by Jan Holleman and Gabriella Vindigni.

References

  1. Aakouk M (2000) Marokkaanse ondernemers in Amsterdam: een inventarisatie van mogelijkheden (Moroccan entrepreneurs in Amsterdam: An inventory of possibilities). Masters Thesis, Free University, AmsterdamGoogle Scholar
  2. Aldrich HE, Waldinger R (1990) Ethnicity and entrepreneurship. Annu Rev Sociol 16:111–135CrossRefGoogle Scholar
  3. Barret GA, Jones TP, McEvoy D (1996) Ethnic minority business: theoretical discourse in Britain and North America. Urban Stud 33(4–5):783–809CrossRefGoogle Scholar
  4. Basu A (1998) An exploration of entrepreneurial activity among Asian small businesses in Britain. Small Bus Econ 10(4):313–326CrossRefGoogle Scholar
  5. Bates T (1995) Analysis of survival rates among franchise and independent small business startups. J Small Bus Manage 33(2):26–36Google Scholar
  6. Bennet RJ, Robson PJA (2001) Exploring the market potential and bundling of business association services. J Mark Serv 15(3):222–239CrossRefGoogle Scholar
  7. Boissevain J, Grotenbreg H (1986) Culture, structure and ethnic enterprise: The Surinamese of Amsterdam. Ethn Racial Stud 9(1):1–23CrossRefGoogle Scholar
  8. Bonacich E, Modell J (1980) The economic basis of ethnic solidarity. University of California Press, Los AngelesGoogle Scholar
  9. Boraah VK, Hart M (1999) Factors affecting self-employment among Indian and Black Caribbean men in Britain. Small Bus Econ 13(2):111–129CrossRefGoogle Scholar
  10. Brüderl J, Preisendörfer P (1998) Network support and the success of newly founded businesses. Small Bus Econ 10(3):213–225CrossRefGoogle Scholar
  11. CBS (1998) Statistisch jaarboek (Statistical yearbook). CBS, Voorburg/HeerlenGoogle Scholar
  12. Choenni A (1997) Veelsoortig assortiment (Multifaceted assortment). Het Spinhuis, AmsterdamGoogle Scholar
  13. Choenni AO, Choenni CES (1998) Allochtoon ondernemerschap (Allochtonous entrepreneurship). In: Scherjon DP, Thurik AR (eds) Handboek ondernemers en adviseurs in het MKB (Handbook for entrepreneurs and advisors in the SME sector). Kluwer, DeventerGoogle Scholar
  14. Curran J, Blackburn R (1993) Ethnic enterprise and the high street bank: a survey of ethnic business in two localities. Small Business Research Centre and the Midland Bank, KingstonGoogle Scholar
  15. Davidsson P (2002) What entrepreneurship research can do for business and policy practice. Int J Entrepreneurship Educ 1(1):1–20Google Scholar
  16. de Feijter H, Sterckx L, de Gier E (2001) Nieuw Amsterdams Peil : Amsterdamse Sociaal-culturele verkenningen (A new standard for Amsterdam: Socio-cultural exploration in Amsterdam). SISWO, AmsterdamGoogle Scholar
  17. Deakins D (1999) Entrepreneurship and small firms, 2nd edn. McGraw-Hill, LondonGoogle Scholar
  18. Deakins D, Majmudar M, Paddison A (1997) Developing success strategies for ethnic minorities in business: evidence from Scotland. New Community 23(3):325–342Google Scholar
  19. Detailhandels Magazine (1995) Toegang tot ketens verloopt moeizaam (Access to chains is difficult). Detailhandels Magazine 11:36–37Google Scholar
  20. Donthu N, Cherian J (1994) Impact of strength of ethnic identification on Hispanic shopping behavior. J Retail 70(4):383–393CrossRefGoogle Scholar
  21. Dyer LM, Ross CA (2000) Ethnic enterprises and their clientele. J Small Bus Manage 38(2):48–66Google Scholar
  22. European Commission (2003) Entrepreneurship in Europe: green paper. Enterprise, BrusselsGoogle Scholar
  23. Galbraith JK (1980) American capitalism. Sharpe, ArmonkGoogle Scholar
  24. Grünhagen M, Dorsch MJ (2003) Does the franchisor provide value to franchisees? Past, current, and future value assessment of two franchise types. J Small Bus Manage 41(4):366–384CrossRefGoogle Scholar
  25. Hood JN, Logsdon JM, Thompson JK (1993) Collaboration for social problem solving: a process model. Bus Soc 32(1):1–17CrossRefGoogle Scholar
  26. Hoy F, Shane S (1998) Franchising as an entrepreneurial venture form. J Bus Venturing 13(2): 91–94CrossRefGoogle Scholar
  27. Igbel M, Llewellyn DT (2001) Islamic banking and finance. Edward Elgar, CheltenhamGoogle Scholar
  28. Jansen M, de Kok J, van Spronsen J, Willemsen S (2003) Immigrant entrepreneurship in the Netherlands. EIM, ZoetermeerGoogle Scholar
  29. Johnson PJ (2000) Ethnic differences in self-employment among Southeast Asian refugees in Canada. J Small Bus Manage 38(4):78–86Google Scholar
  30. Kaufman PJ (1999) Franchising and the choice of self-employed. J Bus Venturing 14(4):345–362CrossRefGoogle Scholar
  31. Kent C, Sexton D, Vesper K (eds) (1982) The Encyclopedia of entrepreneurship. Prentice-Hall, Englewood CliffsGoogle Scholar
  32. Kirzner I (1997) Entrepreneurial discovery and the competitive market process. J Econ Lit 35(1):60–85Google Scholar
  33. Kloosterman R, van der Leun J, Rath J (1998) Across the border: Immigrants’ economic opportunities, social capital and informal business activities. J Ethn Migr Stud 4(2):249–268CrossRefGoogle Scholar
  34. Kruiderink E (2000) Allochtoon ondernemen (Foreign entrepreneurship). ESB 85(18-2):144–146Google Scholar
  35. Lafontaine F (1992) Agency theory and franchising: some empirical results. Rand J Econ 23(2):263–283CrossRefGoogle Scholar
  36. Lee Y, Cameroen T, Schaeffer P, Schmidt CG (1997) Ethnic minority small business: a comparative analysis of restaurants in Denver. Urban Geogr 18(7):591–621CrossRefGoogle Scholar
  37. Lewis MK, Algaoud ML (2001) Islamic banking. Edward Elgar, CheltenhamGoogle Scholar
  38. Lewison DM (1997) Retailing, 6th edn. Prentice Hall, Englewood CliffsGoogle Scholar
  39. Li PS (1993) Chinese investment and business in Canada: Ethnic entrepreneurship reconsidered. Pac Aff 66(2):219–243CrossRefGoogle Scholar
  40. Masurel E, Janszen RM (1998) The relationship between SME cooperation and market concentration: evidence from small retailers in the Netherlands. J Small Bus Manage 36(2):68–73Google Scholar
  41. Michael SC (1996) To franchise or not to franchise: an analysis of decision rights and organizational form shares. J Bus Venturing 11(1):57–71CrossRefGoogle Scholar
  42. Michael SC (2002) Can a franchise chain coordinate? J Bus Venturing 17(4):325–341CrossRefGoogle Scholar
  43. Michael SC (2003) First mover advantage through franchising. J Bus Venturing 18(1):61–80CrossRefGoogle Scholar
  44. Peterson MF, Roquebert J (1993) Success patterns of Cuban–American enterprises: implications for entrepreneurial communities. Hum Relat 6(8):921–937CrossRefGoogle Scholar
  45. Rafiq M (1992) Ethnicity and enterprise: a comparison of Muslim and Non-Muslim owned Asian business in Britain. New Community 19(1):43–60Google Scholar
  46. Ram M (1994) Unravelling social networks in ethnic minority firms. Int Small Bus J 12(3):42–53CrossRefGoogle Scholar
  47. Ram M, Deakins D (1996) African-Caribbeans in business. New Community 22(1):67–84Google Scholar
  48. Reijnders WJM, Verhallen TMM (1996) Strategic alliances among small retailing firms: empirical evidence for the Netherlands. J Small Bus Manage 34(1):36–45Google Scholar
  49. Rice G (1999) Islamic ethics and the implications for business. J Bus Ethics 18(4):345–358CrossRefGoogle Scholar
  50. Rinder ID (1958) Strangers in the land: social relations in the status gap. Soc Probl 6(3):253–260CrossRefGoogle Scholar
  51. Ruiz-Vargas Y (2000) Small business financing sources between immigrants and natives in Puerto Rico. Q Rev Econ Finance 40(3):387–399CrossRefGoogle Scholar
  52. Shane S (1998) Explaining the distribution of franchised and company-owned outlets in franchise systems. J Manage 24(6):717–739Google Scholar
  53. Shane S (2003) A general theory of entrepreneurship. Edward Elgar, CheltenhamGoogle Scholar
  54. Simmel G (1950) The stranger. In: Simmel G (ed) The sociology of George Simmel. Free Press, New YorkGoogle Scholar
  55. Stanworth J, Curran J (1999) Colas, burgers, shakes and shirkers: towards a sociological model of franchising in the market economy. J Bus Venturing 14(4):323–344CrossRefGoogle Scholar
  56. Stern LW, El-Ansary AI, Coughlan AT (1996) Marketing channels, 5th edn. Prentice Hall, Englewood CliffsGoogle Scholar
  57. Sullivan R (2000) Entrepreneurial learning and mentoring. Int J Entrepreneurial Behav Res 6(3):160–175CrossRefGoogle Scholar
  58. Suyver JF, Lie A, Kwie JA (1998) Allochtoon ondernemerschap in de detailhandel (Allochtonous entrepreneurship in the retail sector). EIM, ZoetermeerGoogle Scholar
  59. Texeira C (1998) Cultural resources and ethnic entrepreneurship: a case study of the Portuguese real estate industry in Toronto. Canad Geogr 42(3):267–281CrossRefGoogle Scholar
  60. van Delft H, Gorter C, Nijkamp P (2000) In search of ethnic entrepreneurship opportunities in the city: a comparative policy study. Environ Plann C Gov Policy 18(4):429–451CrossRefGoogle Scholar
  61. van Witteloostuijn A (1995) Studies in industrial organization. Kluwer, DordrechtGoogle Scholar
  62. Waldinger R, Aldrich H (1990) Trends in ethnic business in the United States. In: Waldinger R, Aldrich H, Ward R et al. (eds) Ethnic entrepreneurs. Sage series on race and ethnic relations, vol 1. Sage, London, pp 49–78Google Scholar
  63. Waldinger R, Aldrich H, Ward R (1990a) Opportunities, group characteristics and strategies. In: Waldinger R, Aldrich H, Ward R et al. (eds) Ethnic entrepreneurs. Sage series on race and ethnic relations, vol 1. Sage, London, pp 13–48Google Scholar
  64. Waldinger R, Aldrich H, Bradford WD, Boissevain J, Chen G , Korte H, Ward R, Wilson P (1990b) Conclusions and policy implications. In: Waldinger R, Aldrich H, Ward R et al. (eds) Ethnic entrepreneurs. Sage series on race and ethnic relations, vol 1. Sage, London, pp 177–197Google Scholar
  65. Werbner P (1999) What color “success”? Distorting value in studies of ethnic entrepreneurship. Sociol Rev 47(3):548–575Google Scholar
  66. Wilson KL, Portes A (1980) Immigrant enclaves: an analysis of the labor market experience of Cubans in Miami. Am J Sociol 86(2):295–319CrossRefGoogle Scholar
  67. Yoon I-J (1995) The growth of Korean immigrant entrepreneurship in Chicago. Ethn Racial Stud 18(2):315–335CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  1. 1.Centre for Innovation and Sustainable EntrepreneurshipFree UniversityBerlinGermany
  2. 2.Department of Spatial EconomicsVU UniversityAmsterdamThe Netherlands

Personalised recommendations