New Orientations in Ethnic Entrepreneurship: Motivation, Goals and Strategies of New Generation Ethnic Entrepreneurs

Tuzin Baycan-Levent, Peter Nijkamp and Mediha Sahin
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Tuzin Baycan-Levent: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 12, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: The literature on ethnic entrepreneurship has identified a blend of structural and cultural factors that influence the step towards ethnic entrepreneurship. An important issue is whether ethnic entrepreneurs produce for their own ethnic niches or whether they try to cover a wider market of customers. This difference between so-called internal and external orientation has been the subject of many recent empirical investigations. An internal orientation may offer a more protected market, but will never lead to market expansion (break-out strategy). An external orientation requires more skills, diversified communication channels and access to government policy support measures. The concentration of ethnic entrepreneurs in traditional sectors has led many studies to focus mainly on this internal orientation, while there is a limited number of studies that address non-traditional sectors and external orientations of ethnic entrepreneurs. Against this background, the present study aims to deal with new departures for ethnic entrepreneurship in terms of motivation, sectoral choice, business goals and strategies of new generation ethnic entrepreneurs. What is the motivation and orientation of new generation ethnic entrepreneurs? How far are new generation ethnic entrepreneurs from their ethnic groups or their ethnic niches in the market? Can an innovative orientation –external orientation- help to break out from the local ethnic dependency or to escape from a lock-in situation in an ethnic enclave? Can the different motivations and orientations of new generation ethnic entrepreneurs help in realizing effective break-out strategies? In order to answer these questions the study focuses on external orientations of new generation ethnic entrepreneurs, while it addresses in particular the way -and the extent to which- the choice for entrepreneurship is made by higher educated ethnic young generations.

Date: 2007
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