The Performance of Immigrant-owned Business Ventures

Abstract

Employing a representative sample of small- and medium-sized enterprises, this study examines the performance of immigrant-owned business ventures (IBVs) and firms owned by non-immigrants. The study also presents a comprehensive profile of Canadian IBVs.

Anecdotal evidence has suggested that many successful growth-oriented firms have been started and managed by immigrant entrepreneurs. Immigrant business owners are also thought to bring to business start-up unique managerial acumen and social capital derived from diverse experiences and international networks. To date, however, there remains a lack of substantive evidence regarding the performance of immigrant-owned ventures. The study also considers the performance of comparable groups of new firms owned by non-immigrant entrepreneurs, with a particular focus on the relationship between firm internationalization and enterprise performance. The results lend support to arguments that owner-level factors influence the process of internationalization among SMEs and that, compared to non-immigrant business owners, immigrant business owners retain entrepreneurial acumen that is conducive to the internationalization of young ventures. The implications of the findings for research and policy are considered.