Differences between First-Generation and Second-Generation Ethnic start-ups : implications for a new support policy

This paper studies to what extent first-generation ethnic entrepreneurs show a different motivation to start their own business, in comparison with their second-generation counterparts. Our research project contains empirical fieldwork among Turkish entrepreneurs in the Greater Amsterdam area. First-generation ethnic entrepreneurs are more motivated by discrimination, problems with the transferability of their diplomas and obtaining status, compared with their second-generation counterparts. The latter group derives more motivation trom blocked promotion to start their own business. We found no differences between both groups In their motives tor starting up, i.e. unemployment; need tor achievement; making use of market opportunities; striving for independence; and using their own special talents. The reasons tor finding fewer differences than expected between the two generations are discussed extensively in our paper. Having shown what these differences are between the two generations, we may have laid the basis tor a new support policy tor ethnic entrepreneurs. This new support policy is based on the need to pay attention to both the motives tor starting up business and the necessary preparatory activities. This contribution should be translated into a number of projects and programmes, as ethnic entrepreneurship is a multifaceted phenomenon with at least as many sides as there are ethnic groups.