Nonna Kushnirovich

Financial Funding of Immigrant Businesses

This study investigates differences in financial funding between immigrant and non-immigrant businesses and delineates factors influencing financial funding of immigrant businesses. Data for the study were collected in Israel between 2000 and 2005. By combining convenient and snowball samples, 214 native Israelis and 153 FSU immigrant entrepreneurs answered a questionnaire. We classified financial sources for immigrant businesses according to their affiliation to the ethnic community, and according to their relation to official financial institutions. Our study revealed that the scope of funding of immigrant businesses is significantly smaller than that of non-immigrant businesses. Immigrant entrepreneurs are more likely to finance their businesses from informal sources but they use fewer loans from family and friends than non-immigrant entrepreneurs. We found that immigrant entrepreneurs who deal with co-ethnic clients do not use more ethnic sources of capital for financing their businesses: the share of co-ethnic clients does not influence the ratio of ethnic financial sources for both setting up and expanding immigrant businesses. Our study revealed that governmental support in the terms of designated loans is the most salient factor influencing financial funding of immigrant businesses. The results suggest important implications for public policy.

Innovation and conformity: intersection of gender and ethnicity in hi‐tech organizations

Purpose – The purpose of this paper is to develop a framework for analyzing preference for innovation of different groups of hi‐tech workers according to their culture of origin and gender.Design/methodology/approach – A quantitative survey was conducted online among veteran Israelis, immigrants from North America, Western countries and immigrants from the Former Soviet Union employed in 60 different high‐tech organizations.Findings – The paper developed the application of Bourdieus concept of habitus, adopting it to migration research and to understanding preference of changes and innovativeness. The authors also developed a framework for analyzing the preference of innovation according to workers’ gender and culture of origin. Based on the Entrepreneurial Drive Theory regarding preference for innovation and nonconformity of Florin et al., the authors determined four dimensions characterizing innovativeness.Research limitations/implications – The limitation of this study was the relatively small number ...

The impact of policy on immigrant entrepreneurship and businesses practice in Israel

Purpose – The purpose of this paper is to examine governmental support to immigrant entrepreneurs and its impact on their businesses. The study seeks to explore the needs of immigrant entrepreneurs as to government support schemes, and the impact of government policy upon mobilization of resources and growth of immigrant businesses.Design/methodology/approach – Combining convenient and snowball sample, 218 former Soviet Union immigrant entrepreneurs from all over Israel and all business spheres were surveyed via a questionnaire. Data analysis was conducted by quantitative statistical methods.Findings – Entrepreneurs who encountered more problems at business start‐up are more likely to receive government support. Receiving support facilitates mobilizing resources and compensates for fewer opportunities of initially weak businesses.Research limitations/implications – Further research might focus upon comparing the impact of policy on immigrant entrepreneurs between countries. Utilization of the findings by ...

Economic Integration of Immigrant Entrepreneurs

Objective: This study investigates economic integration of immigrant entrepreneurs by comparing them with their native-born counterparts, and examines whether and how entrepreneurs socio-cultural integration affects their economic integration. Research Design & Methods: This study is based on data of the Social Surveys conducted by the Israeli Central Bureau of Statistics in 2008, 2010 and 2012. The sample included 1133 native-born and 576 immigrant entrepreneurs. Findings:: Socio-cultural integration is not necessarily associated with economic integration and a high income. Immigrants can earn the same and even more than native-born entrepreneurs do, even if they have a low level of socio-cultural integration. The impact of socio-cultural integration on immigrant entrepreneurs income varies by their origin. Implications & Recommendations: Understanding integration of immigrant entrepreneurs and the factors affecting their income will help policy-makers to facilitate their economic advancement. Contribution & Value Added: Based on Berrys concept, I propose a model of entrepreneurs integration. The model stresses interrelations between socio-cultural and economic integration.

Immigrant investors in financial markets: modes of financial behavior

AbstractThis study investigates the modes of financial behavior of immigrants, comparing them with native-born investors. The study developed a theoretical framework for investigating the determinants of financial behavior, combining Bourdieu’s concept of economic habitus with the theories explaining behavior of investors in financial markets. Methods of clustering analysis and multinomial logit regression model were used. The study found that an investor’s behavior mode is strongly predicted by determinants derived from cultural, economic and social capital. For low-income persons, the culture of origin shapes their financial behavior, and for high-income persons, their economic capital and affiliation to social class are more important. Over time, immigrants assimilate in their financial choices. This study contributes to research of financial behavior as well as migration research by explaining the factors that affect preferences for financial assets allocation among immigrants. Understanding migrants’...

Entrepreneurial finance of minority and migrant groups in Israel

The purpose of this chapter is to examine patterns of finance of ethnic minority-owned businesses and compare these patterns to those owned by ethnic majorities. Based on the disadvantage approach, we investigated four groups of entrepreneurs in Israel. Using a combination of convenience and snowball sampling, we reached 948 entrepreneurs who answered a comprehensive questionnaire. The patterns of financing businesses owned by minorities differ from those of majority entrepreneurs in terms of access to capital and constraints, sources of funding, scope of investment and financial viability. Overall, our findings indicate that stratification encounters entrepreneurship also in financing patterns. Within the Israeli context internal (education) and external (institutional) constraints lead to lower availability of financial resources, distributed and available along lines of the social hierarchy of the groups under investigation.