Antecedents of business location decisions: the case of aspiring immigrant opportunity entrepreneurs

Abstract

PurposeThe purpose of this paper is to investigate aspiring immigrant opportunity (AIO) entrepreneurs' start-up location decisions.Design/methodology/approachThe authors used conjoint analysis to explore 1,264 location decisions nested within 79 highly educated, first-generation AIO entrepreneurs.FindingsThe authors found that although government support positively influences business location decisions, network support decreases the perceived benefits of government support for AIO entrepreneurs. Furthermore, locations with high costs of doing business are unattractive to AIO entrepreneurs, but financial capital access through ethnic and nonethnic sources in these locations enhances the appeal of high-cost locations.Research limitations/implicationsThe generalizability of the findings to AIO entrepreneurs should be considered with caution. Future research should longitudinally examine immigrant opportunity entrepreneurs' location decisions and their implications for their start-up and community-level performance outcomes. The authors also encourage replication of the study.Practical implicationsThe findings of this study have implications for AIO entrepreneurs who intend to make start-up location decisions. Also, government policymakers can use the findings of this study to better attract AIO entrepreneurs to different locations.Originality/valueBy integrating ethnic enclave theory and location theory, this research contributes to theory and practice about immigrant opportunity entrepreneurs' start-up location decisions which are currently underexplored in the immigrant entrepreneurship literature.

Institutional Support in Increasing Entrepreneurial Self-efficacy and Performance of Woman Entrepreneurs

“…Based on the recorded responses, there were 235 female MSMEs involved as respondents (see table 1). This research is quantitative research with primary data to explore the effect of Entrepreneurial Self-efficacy (Kazumi & Kawai, 2017;Simarasl et al, 2021;Hopp & Stephan, 2021) with 12 statements, Woman Entrepreneurial Action (Hansen et al, 2013;Setini et al, 2020) which contains 11 statements, Institutional Support (Muñoz & Kibler, 2016) contains 13 statements and venture performance (Setini et al, 2020) with 12 statements for a total of 48 statements.…”

“…Entrepreneurial self-efficacy refers to research conducted by Simarasl et al (2021), namely successfully identifying business opportunities, creating new products and services, thinking creatively, and commercializing a new idea. Woman entrepreneurs refer to research conducted by Lee et al (2011), namely experience, business potential, management skills, HR satisfaction, mentors, social network satisfaction, conflicts between family members, business environment satisfaction, perseverance, Institutional support refers to research conducted by Simarasl et al, (2021), namely written regulations, encouragement and support for women entrepreneurs, active participation in helping facilitate businesses, mentor facilities, training facilities, and entrepreneurship education, and helping promote products through tourism activities. Venture performance refers to research conducted by Simarasl et al, (2021), namely sales growth, market share growth, growth in the number of employees, and profit growth.…”

“…Woman entrepreneurs refer to research conducted by Lee et al (2011), namely experience, business potential, management skills, HR satisfaction, mentors, social network satisfaction, conflicts between family members, business environment satisfaction, perseverance, Institutional support refers to research conducted by Simarasl et al, (2021), namely written regulations, encouragement and support for women entrepreneurs, active participation in helping facilitate businesses, mentor facilities, training facilities, and entrepreneurship education, and helping promote products through tourism activities. Venture performance refers to research conducted by Simarasl et al, (2021), namely sales growth, market share growth, growth in the number of employees, and profit growth.…”

“…The second contribution is a new mechanism through institutional support that can influence perceptions, behavior, and women entrepreneurs who focus on the importance of institutional support for women entrepreneurs (referring to Dahlstrand & Politis, 2013;Albort-Morant & Oghazi, 2016). The third form of contribution conceptualizes research on women entrepreneurs in a limited context (referring to Kaciak & Welsh, 2020;Simarasl et al, 2021). This research is expected to have implications for women entrepreneurs, policymakers, and institutions regarding how to maintain new businesses and encourage women's participation or success in entrepreneurship (Berger & Kuckertz, 2016).…”

Transitional entrepreneurship: unleashing entrepreneurial potential across numerous challenging contexts

“…Besides the language and resource disadvantages, immigrants and refugees do not have sufficient cultural knowledge of the new country and are expected to suffer from the liabilities of foreignness (Sowell, 1996; Zaheer, 1995). However, immigrant entrepreneurs are also likely to have opportunities because of their networks in diasporas in the host country that makes it possible for them to get support from their ethnic groups (Moghaddam et al , 2018; Simarasl et al , 2021). In addition to motives, some studies have focused on the impact of culture on opportunity recognition (Moghaddam et al , 2017b), and other studies have examined business startup processes such as startup financing (Moghaddam et al , 2017a) and cross-border activities (Drori et al , 2009).…”