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Differences between First-Generation and Second-Generation Ethnic Start-ups: Implications for a New Support Policy

Author

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  • Enno Masurel

    (Centre for Innovation and Corporate Sustainability (CIMO), Faculty of Earth and Life Sciences, Free University Amsterdam, De Boelelaan 1085, W&N (Box 89), 1081 HV Amsterdam, The Netherlands)

  • Peter Nijkamp

    (Department of Spatial Economics, Faculty of Economics and Business Administration, Free University Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

Abstract

In this paper we study the extent to which first-generation ethnic entrepreneurs show a different motivation to start their own businesses from their second-generation counterparts. Our research project contains findings from empirical fieldwork among Turkish entrepreneurs in the Greater Amsterdam area. First-generation ethnic entrepreneurs appear to be more motivated by discrimination, problems with the transferability of their diplomas, and the goal of obtaining status, compared with their second-generation counterparts. The latter group derives more motivation from blocked promotion to start their own businesses. We found no other differences between these groups in their motives for starting up, that is, unemployment; need for achievement; making use of market opportunities; striving for independence; and using their own special talents. The reasons for finding fewer differences than expected between the two generations are discussed extensively in our paper. Having shown what the differences are between the two generations, we are able to sketch the contours for a new support policy for ethnic entrepreneurs. This new support policy is based on the need to pay attention both to the motives for starting up business and to the necessary preparatory activities. This lesson 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

  • Enno Masurel & Peter Nijkamp, 2004. "Differences between First-Generation and Second-Generation Ethnic Start-ups: Implications for a New Support Policy," Environment and Planning C, , vol. 22(5), pages 721-737, October.
    • Handle: RePEc:sae:envirc:v:22:y:2004:i:5:p:721-737
    DOI: 10.1068/c0356
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. 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).
    4. Ibrahim, Gamal & Galt, Vaughan, 2011. "Explaining ethnic entrepreneurship: An evolutionary economics approach," International Business Review, Elsevier, vol. 20(6), pages 607-613.
    5. 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.
    6. 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.
    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. 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.
    9. Pruthi, Sarika & Tasavori, Misagh, 2022. "Staying in or stepping out? Growth strategies of second-generation immigrant entrepreneurs," International Business Review, Elsevier, vol. 31(5).
    10. 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.
    11. Susan Bagwell, 2006. "UK Vietnamese Businesses: Cultural Influences and Intracultural Differences," Environment and Planning C, , vol. 24(1), pages 51-69, February.
    12. 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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    More about this item

    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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