Ethnic and cross-cultural entrepreneurship essay sample
Posted on June 20, 2017
Business researchers claim that the connection between entrepreneurship and social groups of different origins and genders really exist. Entrepreneurship obviously takes place within a certain culture which creates a social demand which is further satisfied by entrepreneurship. Entrepreneurial behaviors directly depend on the cultures and their diversity. Economic studies reveal that countries with a rich cultural diversity have a high entrepreneurial activity. The ethnic map of the world is gradually changing. There is a solid evidence that ethnic minorities in some European cities become majorities. This reality makes an immediate reflection on the business sector.
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Ethnic entrepreneurship is no news for the present-day economy. Ethnic minorities do not hesitate to start their own business as they naturally want to financially benefit and to some extent assimilate with the native society. Self-employment greatly depends on the conditions in which immigrants live and work. Facing unemployment and racial discrimination, people start their own business to break the cycle of the blocked opportunities. It is also important that immigrants frequently invest in sectors which are unattractive or non-prestigious to the native population. That is why areas where ethic groups search for self-actualization tend to have more individuals engaged in their own business.
Cross-cultural and ethnic entrepreneurs are targeted primarily at customers belonging to their ethnic group. This approach is especially practical as ethnic minorities tend to settle in one and the same area forming expatriate communities. The existence of ethnic and social network is the primary thing which drives people into entrepreneurship. It was also reported that ethnic companies even have some privileges in their access to information and labor sources.
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