The Effect of Network Ties and Entrepreneurial Self-Efficacy on Immigrant New Venture Intentions - Executive Summary

Abstract

Understanding the entrepreneurial process should begin with the individual who engages in pre-startup activities, the nascent entrepreneur. The nascent entrepreneur engages in activities that are intended to lead toward a viable business start-up.The goal of this study was to determine whether the social networks of nascent entrepreneurs play a role in the development of their self-efficacy (i.e. their level of confidence in their ability to engage in activities related to starting a business) and intentions to start a business. In particular, immigrant nascent entrepreneurs were the focus of the study. Immigrants are playing a major role in the U.S. economy, however, the entrepreneurial process and the factors that influence new venture intentions in these groups are not understood. This study sought to understand this process by focusing on the role of the individual's environment in the entrepreneurial process since the environment in which the individual is embedded has been shown to greatly influence his/her attitude and the choices made. The individual's social network is a major part of that environment and therefore can have great influence.