Ethnic diverse and financing choices affecting of business survival: a case study of New Zealand small- and medium-sized enterprises

Geeta Duppati, Francis Scrimgeour, Surachai Chancharat and Ploypailin Kijkasiwat

Journal of Economics, Finance and Administrative Science, 2021, vol. 26, issue 51, 160-174

Abstract: Purpose - This paper aims to investigate how ethnic diversity and finance options impact the survival of small- and medium-sized enterprises (SMEs) in New Zealand. Design/methodology/approach - This study incorporates survey data and secondary data from the public domain. The surveys were conducted across six sectors of the economy categorised into four main ethnic groups involving six nationalities. This study adopts regression analysis using Probit, Logit and linear probability. Findings - The financing choices of the entrepreneurs were consistent with pecking-order theory. The evidence suggests that information asymmetries are prevalent in New Zealand, as SMEs’ owners perceive significant risk from expanding businesses internationally. There is no relationship between ethnicity bias and the survival of firms. Originality/value - This study provides a contribution to the literature on factors relating to business survival and guides the policymakers to use the benefits of potential factors to increase the survival rate of SMEs.

Keywords: Small- and medium-sized enterprises; Survival; Ethnic diverse; Financing choices (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jefasp:jefas-11-2019-0270

DOI: 10.1108/JEFAS-11-2019-0270

Access Statistics for this article

Journal of Economics, Finance and Administrative Science is currently edited by Nestor U. Salcedo

More articles in Journal of Economics, Finance and Administrative Science from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().