Diversity in Entrepreneurship: Ethnic and Female Roles in Urban Economic Life

The aim of this paper is to investigate the phenomenon of ethnic female entrepreneurship in urban economic life. The focus of the research is on the attitude and behaviour of Turkish female entrepreneurs in Amsterdam. The main fascinating question is: Are ethnic female entrepreneurs special ethnic entrepreneurs or special female entrepreneurs? This paper provides an answer to this question on the basis of field surveys. The results of the case study research on Turkish female entrepreneurs in Amsterdam show that the “ethnic female profile” is a “special female profile” and that Turkish female entrepreneurs are “special female entrepreneurs”, particularly in terms of personal and business characteristics, driving forces and motivations. They appear to combine their ethnic opportunities with their personal characteristics (and other opportunities) in the urban market, and to have a successful performance. This is also caused by the fact that they have become service providers not only for their own ethnic groups, but also for other groups in the city.Keywords: Ethnic female entrepreneurship, diversity in entrepreneurship, ethnic female profile, Turkish female entrepreneurs

Entrepreneurial process and performance: the case of the Turkish female entrepreneurs in Amsterdam

Ethnic entrepreneurship has become a popular concept in the modern multi-cultural society; in a modern 'multi-color' city ethnic entrepreneurship tends to become an indigenous and significant part of the local economy. This concept refers to business activities undertaken by entrepreneurs with a distinct socio-cultural or ethnic background. Ethnic groups often have a backward position in society, because of difficulties with native behavior, language and diploma's attitudes. The participation rate of ethnic groups in the urban labor market stays often behind and, when they do participate, they are often situated within the secondary labor market segments. For ethnic groups who are unable to adapt to a new social system, their marginal social position is a driving force to become self-employed some special talents. One way for migrants to escape from their backward position is to become an entrepreneur. In this case, self-employment is not only a means for earning a living, it is also a way of obtaining recognition and social acceptance. On the other hand, in the last few decades the participation rate of women in the labour market has increased in most Western countries. An increase in the participation rate of women does not necessarily imply an increase in the number of female entrepreneurs. However, it does increase the likelihood of women to become self-employed. Moreover, women contribute to the diversity in the supply of entrepreneurship, because they may have a different approach towards entrepreneurship compared to men. Despite the scarcity of data, recent observations show the involvement of women in entrepreneurial activity and self-employment rates, which include women who own and operate their own businesses are increasing around the world. According to available data, between one-quarter and one-third of the formal sector businesses are owned and operated by women. The aim of this paper is to describe and understand the entrepreneurial processes of ethnic females. In which way and to which extent are these processes the result of: a) unemployment b) job level c) poor performance in terms of wages d) work experience e) educational level f) language g) discrimination h) socio-cultural and ethnic networks? Or in other words, what are the factors that stimulate females to find other income generating activities? What are the important factors for the motivation and performance of female entrepreneurship? Which factors contribute to the success or failure of ethnic female entrepreneurs? And how do these female entrepreneurs experience failure or survival? What is the satisfaction level of female entrepreneurs? This study aims to provide an answer to these questions on the basis of case study research on Turkish female entrepreneurs in Amsterdam.

Gender Differences in Ethnic Entrepreneurship

Gender-based differences are the most important topic of discussion in female entrepreneurship studies. While the earliest studies focused on psychological and sociological characteristics of female entrepreneurs, assuming there were only a few differences between males and females, more recent studies have focused on gender-based differences in entrepreneurship from a new perspective, referred to as the “integrated perspective”, which is rooted in psychological and sociological theories. This perspective focuses on sex and gender differences in entrepreneurial characteristics and performance from the perspective of “liberal feminist” and “social feminist” theories, which attemp to explain the basis of the lower status of women in society. The aim of this paper is to investigate gender-based differences in a special field of entrepreneurship the so-called “ethnic entrepreneurship”, and to describe male and female profiles of ethnic entrepreneurs and enterprises. Our findings are based on a comparison of two case study researches; while the first was conducted among three different ethnic groups including Turkish, Indian/Pakistani and Moroccan male entrepreneurs, the second was conducted among Turkish female entrepreneurs in Amsterdam. The results of our comparison show that there are some gender-based differences in ethnic entrepreneurship similar to gender-based differences observed commonly in entrepreneurship. This similarity in trends demonstrates that “gender” as a factor has a higher importance than the “ethnicity” in the characteristics and behavioral attitudes of ethnic entrepreneurs

Entrepreneurial process and performance: the case of the Turkish female entrepreneurs in Amsterdam

Ethnic entrepreneurship has become a popular concept in the modern multi-cultural society; in a modern 'multi-color' city ethnic entrepreneurship tends to become an indigenous and significant part of the local economy. This concept refers to business activities undertaken by entrepreneurs with a distinct socio-cultural or ethnic background. Ethnic groups often have a backward position in society, because of difficulties with native behavior, language and diploma's attitudes. The participation rate of ethnic groups in the urban labor market stays often behind and, when they do participate, they are often situated within the secondary labor market segments. For ethnic groups who are unable to adapt to a new social system, their marginal social position is a driving force to become self-employed some special talents. One way for migrants to escape from their backward position is to become an entrepreneur. In this case, self-employment is not only a means for earning a living, it is also a way of obtaining recognition and social acceptance. On the other hand, in the last few decades the participation rate of women in the labour market has increased in most Western countries. An increase in the participation rate of women does not necessarily imply an increase in the number of female entrepreneurs. However, it does increase the likelihood of women to become self-employed. Moreover, women contribute to the diversity in the supply of entrepreneurship, because they may have a different approach towards entrepreneurship compared to men. Despite the scarcity of data, recent observations show the involvement of women in entrepreneurial activity and self-employment rates, which include women who own and operate their own businesses are increasing around the world. According to available data, between one-quarter and one-third of the formal sector businesses are owned and operated by women. The aim of this paper is to describe and understand the entrepreneurial processes of ethnic females. In which way and to which extent are these processes the result of: a) unemployment b) job level c) poor performance in terms of wages d) work experience e) educational level f) language g) discrimination h) socio-cultural and ethnic networks? Or in other words, what are the factors that stimulate females to find other income generating activities? What are the important factors for the motivation and performance of female entrepreneurship? Which factors contribute to the success or failure of ethnic female entrepreneurs? And how do these female entrepreneurs experience failure or survival? What is the satisfaction level of female entrepreneurs? This study aims to provide an answer to these questions on the basis of case study research on Turkish female entrepreneurs in Amsterdam

Gender Differences in Ethnic Entrepreneurship

Gender-based differences are the most important topic of discussion in female entrepreneurship studies. While the earliest studies focused on psychological and sociological characteristics of female entrepreneurs, assuming there were only a few differences between males and females, more recent studies have focused on gender-based differences in entrepreneurship from a new perspective, referred to as the “integrated perspective”, which is rooted in psychological and sociological theories. This perspective focuses on sex and gender differences in entrepreneurial characteristics and performance from the perspective of “liberal feminist” and “social feminist” theories, which attemp to explain the basis of the lower status of women in society. The aim of this paper is to investigate gender-based differences in a special field of entrepreneurship the so-called “ethnic entrepreneurship”, and to describe male and female profiles of ethnic entrepreneurs and enterprises. Our findings are based on a comparison of two case study researches; while the first was conducted among three different ethnic groups including Turkish, Indian/Pakistani and Moroccan male entrepreneurs, the second was conducted among Turkish female entrepreneurs in Amsterdam. The results of our comparison show that there are some gender-based differences in ethnic entrepreneurship similar to gender-based differences observed commonly in entrepreneurship. This similarity in trends demonstrates that “gender” as a factor has a higher importance than the “ethnicity” in the characteristics and behavioral attitudes of ethnic entrepreneurs.

The Economics of Co-Ethnic Employment: Incentives, Welfare Effects and Policy Options

Co-ethnic employment refers to the stylised fact of many labour markets that there is an over-representation of workers of the same ethnic group within firms. This paper presents empirical proof of the phenomenon and analyses the incentives for employees to work in co-ethnic firms. It argues that strong social networks and related high intra-group trust constitute the major reasons for co-ethnic employment by lowering information and co-ordination costs. In the short run, co-ethnic employment leads to more jobs for employees, easy access to labour for ethnic minority firms, strengthening of the group values and norms, and less unemployment and social security problems for society. In the long run, co-ethnic employment might form an obstacle to the social and economic emancipation of ethnic minority groups. It generates disincentives for individual group members to acquire general skills, hinders the development of ethnic minority firms, fosters the danger! of the ethnic trap and stimulates the emergence of an enclave economy