Understanding Immigrant Entrepreneurship: A Home-country Entrepreneurial Ecosystem Perspective

Purpose – Given the importance of immigration and immigrant entrepreneurs in advanced economies, the authors take an entrepreneurial ecosystem perspective to study the home-country benefits possessed by immigrant entrepreneurs and how home-country entrepreneurial ecosystem factors affect immigrant entrepreneurial motivations, activities and outcomes. Design/methodology/approach – This conceptual research paper follows McGaghie, Bordage and Shea’s (2001) four-step new theory creation process, which suggests that new theories can be created through facts extraction from the extant literature. Findings – The authors propose that although immigrant entrepreneurs are unable to take full benefit of the host-country entrepreneurial ecosystem due to blocked mobility, they do have capabilities to access and use their home-country entrepreneurial resources and opportunities. The authors further propose that homecountry entrepreneurial capital can be systemically analyzed through the framework of the entrepreneurial ecosystem. The results imply that immigrant entrepreneurship as a social and economic phenomenon can be studied more holistically from both host- and home-country perspectives compared to the traditional research boundary of the host-country only. Research limitations/implications – The research focuses on the identification of home-country effects on immigrant entrepreneurship through the lens of the entrepreneurial ecosystem. Testable propositions provide directions for future empirical research on the field of immigrant entrepreneurship from a home-country perspective. The research concludes that a holistic immigrant entrepreneurship study should consider dual (host- and home-country) entrepreneurial ecosystems. Practical implications – Immigrant entrepreneurs benefit from both host- and home-country entrepreneurial ecosystems. This paper suggests co-effects of dual entrepreneurial ecosystems lead to a high rate of entrepreneurship and business success within some immigrant groups. Policymakers can increase economic activities by developing and deploying programs to encourage immigrants to embed in host- and home-country entrepreneurial ecosystems. Originality/value – Based on the framework of the entrepreneurial ecosystem, this paper brings a novel perspective to examining home-country effects on immigrant entrepreneurship. It theoretically conceptualizes that immigrants have higher entrepreneurship rates than native-born populations because they have access to extra home-country entrepreneurial capital

The Effect of Demand-Side Issues in Accessing External Funds on Performance of SMEs in Thailand

Several factors have been identified in the literature as affecting SME performance, in particular ability to access finance. Access to finance is in turn influenced by variables in both the enterprise's internal and external environment. It is held that SMEs are unable to access external finance because they are not investment ready. They lack the necessary information and knowledge of their businesses to approach finance providers or to be successful in accessing funds if they do. Face-to-face interviews using structured questionnaire were conducted to collect primary data from 407 SMEs operating in the trading sector in 3 provinces-Bangkok, Chiang Mai and Khon Kan. Results of the structural equation modeling (SEM) reveal that quality of financial information has significant positive effect on performance and on owner-managers' perception of their ability to access external capital. A significant positive effect of ability to access capital on performance was also found

The effect of demand-side factors on accessing external finance and performance of SMEs in Thailand

SMEs make substantial contributions to the Thai economy in terms of output, employment, and effective utilisation of regional resources. In view of these contributions, SMEs are at the heart of the country's strategy aimed at making Thailand a competitive and dynamic knowledge-based economy. SMEs make up the majority of businesses in the country. The Department of Industrial Promotion revealed that, in 2002, there were 1,639,427 SMEs in Thailand, comprising 99.63 percent of all enterprises. The crucial role of SMEs in the overall health of the economy is dependent on their performance. Several factors have been identified as affecting SME performance, in particular access to finance. As the SME sector is the backbone of the Thai economy, the government has intervened to address their inability to access finance. However, intervention programs focus on supply factors; that is, they are aimed at increasing supply of funds to the sector. Despite financial sector reforms involving an increase in the number of financial institutions and the introduction of a secondary stock market with lower listing requirements, access to finance continues to be a major problem that constrains SME performance in Thailand. Persistence of the problem suggests that addressing only the supply factors by increasing finance to SMEs will not enable SMEs to access finance. In addition, a focus on supply factors alone may lead to the protection of inefficient businesses, as policies that subsidise inefficient firms interfere with their competitiveness. Previous research indicates that demand-side factors account more for the inability of SME to access finance. The demand-side argument suggests that SMEs are unable to access finance because they are not investment ready. Investment readiness enhances a firm's ability to access finance and its performance. Increased performance of the SME sector ultimately boosts national economies by encouraging survival of the most efficient firms. A number of studies have examined the relationships among investment readiness, access to finance, and the performance of large, publicly quoted companies. A few studies have examined these relationships for the SME sector in developed economies, but similar studies for developing economies are few and far between. This study therefore examines the relationships among investment readiness, access to finance and performance of SMEs in Thailand, with the aim of assessing the extent to which findings in the Western literature apply to the Thai context

Internationalisation and Globalisation of Higher Education: Implications for Africa's Higher Education System

While governments are responsible for ensuring that their national education systems adequately meet the human resource needs of their countries, the provision of education -- especially higher education -- is gradually shifting to the private domain and is increasingly commoditised. Amidst these global trends, the higher education sector in Africa remains poorly developed and unable to cope with increasing demand; the reason is partly caused by a focus on primary and secondary education in earlier times, and a lack of focus on the development of a tertiary education sector. Despite excess demand, Sub-Saharan Africa has, on a global basis, the lowest higher education participation rate; preventing the region from providing the specialist knowledge and skills required to support its development. This paper explores global developments in higher education in order to assess opportunities that the global higher education market can provide to Africa to help it overcome low domestic higher education opportunities

The Effect of Demand-Side Issues in Accessing External Funds on Performance of SMEs in Thailand

Several factors have been identified in the literature as affecting SME performance, in particular ability to access finance. Access to finance is in turn influenced by variables in both the enterprise’s internal and external environment. It is held that SMEs are unable to access external finance because they are not investment ready. They lack the necessary information and knowledge of their businesses to approach finance providers or to be successful in accessing funds if they do. Face-to-face interviews using structured questionnaire were conducted to collect primary data from 407 SMEs operating in the trading sector in 3 provinces-Bangkok, Chiang Mai and Khon Kan. Results of the structural equation modelling (SEM) reveal that quality of financial information has significant positive effect on performance and on owner-managers’ perception of their ability to access external capital. A significant positive effect of ability to access capital on performance was also found

Tracking the Pathways: Explaining Gender Differences in Performance among Small Business Owners in a Transition Economy

There is growing confidence among researchers in the ability of small businesses to play a vital role in economic development. This role is manifested through their contribution to innovation, job creation, and income generation. In transitional economies such as Ghana, small businesses comprise about 90 per cent of all registered enterprises and are recognised as a crucial and integral component of economic development policies aimed at sustained poverty reduction. The ability of the small business sector to contribute to economic development is influenced by the performance of individual firms, which is in turn influenced by their strategic capabilities. Strategic capabilities are determined by the owner-manager's personality and demographic and environmental characteristics. Owner-managers' personality characteristics originate from the prevailing cultural and socialisation processes to which they are exposed. In Ghana, women form the majority of operators in the small business sector, but their educational levels and managerial experiences are lower than those of their male counterparts. There are also gender differences in the socialisation of girls and boys in Ghana. It is expected that these differences in personality and demographics between men and women affect their strategic capabilities, and ultimately the performance of their businesses. This study accordingly examines the direct and indirect effects of gender on owner-managers' characteristics, strategic capabilities, and performance of small retail firms in Ghana. A multi-method approach employing both quantitative and qualitative research methodology was utilised. Face-to-face interviews using structured questionnaires were employed to collect information from 674 owner-managers of small retail shops in the Accra Metropolis in Ghana. In all, 600 useable responses were obtained. In addition, focus group discussions were used to support the findings obtained from face-to-face interviews on issues relevant to business success. Structural equation modelling using partial least squares was employed to examine the relationships between gender, owner-managers characteristics, strategic capabilities, and firm performance. Results revealed that the gender of the owner-manager has a direct influence on performance, firm resources, business owner's skills, personal values, business experience, and education. In addition, a partial influence was observed for business strategies, but not for owner-manager's age

SME Performance and Its Determinants: An Empirical Study in the Chinese Transitional Context

The economic transition in China has facilitated a process of privatisation that promotes the development of entrepreneurship and, in turn, the growth of small and medium-sized enterprises (SMEs). As in the majority of countries around the world, SMEs are increasingly seen as playing an important role in Chinese economic development. However, although the association between SME performance and economic growth has attracted various research interests in the West, research in this area is sparse for Chinese SMEs on the mainland. It is proposed in the Western literature that SME performance is a multi-dimensional construct. A number of theoretical models or perspectives have been developed to identify the factors that influence SME performance. It is generally accepted that internal factors presented as business strategy and CEOs' personal characteristics as well as external factors in the business environment are critical to SME performance. There is no doubt that regardless of the perspective emphasised, existing models of SME performance and its determinants are based on market economies with free market systems. There is a research gap in the assessment of the extent to which these models apply in a transitional economy context. It is sometimes assumed erroneously that Western models of economic development and associated factors are applicable in all economic contexts. Based on the Chinese and Western literature on SME development, this study develops a framework of SME performance and its determinants and tests empirically the application of the framework to the Chinese context. The framework comprises SME performance and its three determinants: CEO characteristics, variables in the external environment and business strategies. The textile industry in the Shaoxing city of Zhejiang province was selected to test the direct and indirect relationships among these factors due to its important position in the Chinese economy. To meet the research objectives, a quantitative research design was adopted involving the use of the survey method to collect data for hypotheses testing. Structured questionnaires were distributed to more than 500 CEOs in the textile industry in Shaoxing. In all, 309 valid responses were collected and analysed. Structural equation modelling, using Partial Least Squares was employed as the statistical technique to test the hypotheses formulated from the research framework. The findings of the study were consistent with the Western literature in several areas. There were however other areas of differences. For example it was found that Chinese CEOs embody a combination of Western entrepreneurial and conservative values using both to their advantage in operating within the Chinese context. In addition, Chinese CEOs place a lot of emphasis on social systems and networks for business resources, information and opportunities. These social systems are used to fill the gaps in areas not yet addressed by the reform process

The Effect of Regulations on Performance of Microfinance Institutions in Promoting Small Business Growth in Ghana

Microfinance institutions (MFIs) have emerged to provide financial services to the poor who were hitherto, excluded from the formal financial system. MFIs have pursued the objective of providing financial services to the poor through two different approaches: the welfarist approach and the institutional approach. The welfarist approach focuses on poverty alleviation by emphasizing the depth of outreach, i.e. reaching the very poor and vulnerable in society with microfinance products. The institutionalists, on the other hand, focus on institutional sustainability by pursuing financial self-sufficiency while serving significant numbers of the poor i.e. breadth of outreach. Despite differences in the two approaches, the performance of MFIs should be assessed on the extent to which they fulfil their common objective of meeting the financial needs of the poor. However, for MFIs to reach out to large numbers of the poor with financial services, their businesses should be conducted on sound operating principles. This requires that MFIs are regulated. Regulation is therefore, important to effective operation of MFIs but can limit their ability to reach the very poor with appropriate financial services. Up until recently, MFIs in Ghana were regulated by various bodies. The rural and community banks and savings and loan companies, regulated by the Bank of Ghana (BoG), had the most rigorous compliance requirements ensuring effective governance. In contrast "susu" operators, regulated by the Ghana National Association of "Susu" Collectors, had the least compliance requirements and the most weak governance structures. This study seeks to examine the effect of regulation on the performance of MFIs in promoting small business growth in Ghana. Small business provides an avenue for income generation by a large segment of the poor, many of whom do not have the qualifications and experiences to be employed in positions that generate sufficient income to meet their needs

Economic and social diversity in Australia\u27s cotton-producing communities

Australia’s highly profitable cotton industry is geographically constrained to districts in northern New South Wales and Southern Queensland. However, the rural towns servicing the industry are facing unprecedented stress on account of fierce commercial competition between them, many years of drought during the 2000s, technological innovation in cotton production, the chance occurrence of non-agricultural economic opportunities, and even ethnic composition. Our research focuses on the role of innovative small business in overcoming community stress and we have selected a small sample of six local government areas to examine this link in depth. The selection of a representative sample entailed the classification of cotton communities on the basis of their economic and social profiles and how they had evolved over the inter-census period 2001-06. This analysis surprisingly showed that cotton growing regions are highly differentiated not just at a single point in time (2006), but also in their development trajectories. This considerably complicated the process of sample selection, but also demonstrated the diversity of rural settlement