Title: The role of social capital in the growth and innovation of immigrant-founded enterprises

Authors: B. Yasanthi Perera; Claudia Gomez; Judith Y. Weisinger; David H. Tobey

Addresses: Management Department, MSC 3DJ, New Mexico State University, P.O. Box 30001, Las Cruces, NM 88007, USA. ' Management Department, MSC 3DJ, New Mexico State University, P.O. Box 30001, Las Cruces, NM 88007, USA. ' Management Department, MSC 3DJ, New Mexico State University, P.O. Box 30001, Las Cruces, NM 88007, USA. ' National Board of Information Security Examiners, 4189 Capistrano Avenue, Suite B, Las Cruces, NM 88011, USA

Abstract: Immigrant-founded enterprises contribute significantly to host country economies. Research indicates that immigrant entrepreneurs garner benefits from their social capital within co-ethnic communities. Relationship strength, community norms, and the level of community embeddedness seem to influence the potential for developing immigrant-founded businesses. Despite its start-up phase benefits, co-ethnic social capital may impose limitations on these enterprises. We offer a theoretical analysis connecting social ties, and network structure with the ability of immigrant-founded enterprises to innovate. This paper expands our understanding of immigrant-founded enterprises, and informs interested parties of the value of developing the immigrant entrepreneurs' social capital beyond co-ethnic communities.

Keywords: immigrant entrepreneurs; weak ties; strong ties; immigrant communities; co-ethnic social capital; community norms; community expectations; bridging ties; bonding ties; immigrant-founded enterprises; host countries; immigrants; immigration; ethnicity; relationship strength; community norms; community embeddedness; start-up benefits; limitations; social ties; networks; network structures; entrepreneurship; USA; United States; Canada; North America; innovation; learning.

DOI: 10.1504/IJIL.2013.050580

International Journal of Innovation and Learning, 2013 Vol.13 No.1, pp.33 - 49

Published online: 31 Jul 2013 *

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