Narrow Results

Networks, and their resulting social capital, can be key determinants of successful business start-up for immigrant entrepreneurs. Historically, immigrants have settled in communities characterized by networks that consist of strong ties. Network theory suggests that in addition to strong ties, success also requires the development of weak ties. In this paper, we develop a model of the relationships between strong and weak ties, and the likelihood of a business start-up and its subsequent growth. We also specifically consider the moderating effect of the entrepreneur's human capital in these relationships. Based on this model, we derive a number of theoretical propositions.

This study investigates differences in financial funding between immigrant and non-immigrant businesses and delineates factors influencing financial funding of immigrant businesses. Data for the study were collected in Israel between 2000 and 2005. By combining convenient and snowball samples, 214 native Israelis and 153 FSU immigrant entrepreneurs answered a questionnaire. We classified financial sources for immigrant businesses according to their affiliation to the ethnic community, and according to their relation to official financial institutions. Our study revealed that the scope of funding of immigrant businesses is significantly smaller than that of non-immigrant businesses. Immigrant entrepreneurs are more likely to finance their businesses from informal sources but they use fewer loans from family and friends than non-immigrant entrepreneurs. We found that immigrant entrepreneurs who deal with co-ethnic clients do not use more ethnic sources of capital for financing their businesses: the share of co-ethnic clients does not influence the ratio of ethnic financial sources for both setting up and expanding immigrant businesses. Our study revealed that governmental support in the terms of designated loans is the most salient factor influencing financial funding of immigrant businesses. The results suggest important implications for public policy.

This paper explores the phenomenon of Afro-Caribbean immigrant enterprise viability in two US counties heavily populated by Afro-Caribbean immigrants: Kings (Brooklyn), New York, and Miami-Dade, Florida. It aims to construct an understanding of enterprise viability as it is understood by local economic development agency (LEDA) directors by examining the meanings of their experiences and interactions with this particular group of immigrants. It posits that objectively studying empirical indicators of enterprise viability only from the scholar's or entrepreneur's perspective would not get at the essential structure of enterprise viability as experienced by providers of enterprise development services. Examining the meaning providers ascribe to their experiences lends to better understanding of how potentials and challenges to enterprise viability manifest on the ground. Opportunities, challenges, expectations and unmet needs are exposed. Progress can then be made to provide immigrant entrepreneurs with the quality of programs and policy that can make them viable. Findings suggest that understanding the "American system" and learning and applying basic modern business functions are essential elements in enterprise development and viability. Professionalization, formalization, and systematization effectuate migration from periphery to mainstream.