Principal Topic

This paper examines the interaction between culture and immigrant entrepreneurship in the UK with specific reference to London’s ethnic minorities. Culture is usually defined as a set of shared values, beliefs and norms of a group or community. The influence of culture on entrepreneurship was first emphasised by Max Weber who famously argued that the Protestant work ethic encouraged a culture of individualism, entrepreneurship, rationality and self-reliance, which was fundamental to the spirit of modern capitalism (Weber 1976). This paper examines how the cultural attributes of different ethnic groups affect their entrepreneurial behaviour. It aims to contribute to our understanding of the interface between culture and entrepreneurship.

Method

The paper reports and analyses the results of 163 interviews with entrepreneurs from six different immigrant communities in London: Indian, East African Asian, Pakistani, Bangladeshi, Turkish Cypriot and Turkish. The sample was drawn from various published and unpublished databases. The authors conducted face-to-face interviews based on a detailed, structured questionnaire, that included questions on the personal and family characteristics of the immigrant entrepreneur, motives for business entry, business structure and operations, and future plans. The responses have been analysed primarily by means of cross-tabulations and non-parametric (chi-square) tests of association.

Results and Implications

The findings indicate diversity in business entry motives, sources of start-up capital and family involvement in business among the different ethnic groups. These may be explained by differences in family background, migration motives, religion, family links, business experience, educational attainment and other factors. The evidence suggests that the interaction between culture and entrepreneurship is stronger in the case of some ethnic groups than others. For example, culture, in the form of a family tradition in business and close family ties, has a strong influence on the business entry decision of East African Asian entrepreneurs. The evidence also suggests that the interaction between culture and entrepreneurship may change with time, that is, between business entry and later business operation.

CONTACT: Anuradha Basu, Dept of Economics, University of Reading, PO Box 218, Reading RG6 6AA,UK; (T) 44-1189875123; (F) 44-1189316229; a.basu@reading.ac.uk