University essay from Blekinge Tekniska Högskola/Institutionen för industriell ekonomi

Abstract: Most immigrants relocate to the "land of opportunities" in search of greener pastures. Because of their desperate circumstances, they often work much harder than the average American to succeed. Strong social ties embedded in ethnic communities of immigrant populations have been considered vital assets for immigrant entrepreneurs (Yang et al. 2011, p. 639). However, little quantitative research has been done on the influence of biological kinship and altruism within the arena of ethnic entrepreneurs. It is well-documented that successful immigrant entrepreneurs and businesses can create jobs for others as well. Members of the same ethnic group often form communities in a host country. These communities live near one another, speaking the same language and honouring the same culture. These factors play an essential role in immigrant entrepreneurship and the creation of enclave businesses. Ethnic economies potentially provide a protected market for production of ethnic goods and an opportunity for greater business networks - including providing experience and apprenticeship to co-ethnic employees. In this study, the hypothesis is that small businesses founded and operated by immigrants are much more likely to hire immigrants, especially immigrants from a home country identical or similar to their own. The data collected by questionnaire was analysed using the Social Sciences Statistical Package (SPSS). Frequency distribution tables were used to analyse the research questions. To accept or reject the hypothesis, a statistical analysis was conducted. The formulated hypotheses were tested using inferential statistics chi-square. As far as immigrant entrepreneurs and their businesses are concerned, the descriptive study methodology used to test the hypothesis was successful in the sense that the results validated the idea that indeed immigrant small business owners are drawn towards other immigrants, preferably of their own ethnic or cultural background.

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