Staying In or Stepping Out? Growth Strategies of Second Generation Immigrant Entrepreneurs

Abstract

Second generation immigrants in developed economies have contributed to the emergence of new areas of immigrant business activity, especially in information technology and the creative industries; however, an understanding of their growth strategies is limited. Compared to native entrepreneurs, immigrant entrepreneurs are more likely to have human and social capital resources needed to start international new ventures, and potentially global firms competing against multinational enterprises. Using case studies, we examine the growth strategies, and the factors influencing choice, of 12 SGIEs of South Asian origin in the UK. Our findings reveal that SGIEs are heterogenous in their pursuit of inward and outward internationalization, geographic and product-related growth, contingent on their start-up context and use of social ties. In linking founder and successor SGIEs’ use of co-ethnic (family and non-family) and non-co-ethnic ties with the product and geographic scope of their ventures, these findings contribute to the immigrant entrepreneurship, international entrepreneurship and international business literatures. Keywords: Second generation immigrant entrepreneurs; immigrant entrepreneurs; growth strategies; internationalization