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

Enno Masurel and Peter Nijkamp
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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

Environment and Planning C, 2004, vol. 22, issue 5, 721-737

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.

Date: 2004
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Working Paper: Differences between First-Generation and Second-Generation Ethnic start-ups: implications for a new support policy (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:22:y:2004:i:5:p:721-737

DOI: 10.1068/c0356

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