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  5. Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry

Social Capital, Geography, and Survival: Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry

File(s)
Kalnins6_Social_Capital.pdf (195.75 KB)
Permanent Link(s)
https://hdl.handle.net/1813/72214
Collections
SHA Articles and Chapters
Author
Kalnins, Arturs
Chung, Wilbur
Abstract

Immigrant entrepreneurs often rely on their group’s local social capital in their new home market to establish and maintain their businesses. In particular, immigrant entrepreneurs with few resources of their own receive help from those possessing more resources. Supporting these arguments using the empirical setting of Gujarati immigrant entrepreneurs in the lodging industry, we find that the likelihood of survival of an immigrant entrepreneur’s hotel increases when surrounded by higher counts of branded hotels (representing high-resource establishments) owned by individuals from their ethnic group but is unaffected by unbranded motels (representing low-resource establishments) owned by members of their ethnic group or by branded hotels owned by individuals from other ethnic groups. These results isolate and reinforce the importance of social capital not only for immigrant entrepreneurs but also more generally for any entrepreneurs belonging to ethnic, professional, religious, or social groups.

Date Issued
2006-02-01
Keywords
social capital
•
immigrant entrepreneurs
•
franchising
•
survival
•
hotels
Rights
Required Publisher Statement: © INFORMS. Reprinted with permission. All rights reserved.
Type
article

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