Immigrant and US-Born Mexican-Owned Businesses: Motivations and Management

Abstract

In this study, we seek to understand the key differences between the entrepreneurial experience for Mexican immigrant and US-born Mexican entrepreneurs. We focus on differences in motivation for start-up, reliance on ethnic enclaves and business management practices. Using data from the 2005 National Minority Business Owner Survey, our sample consisted of 156 Mexican American entrepreneurs (55 immigrants and 101 US-born). Results suggest that even within a particular minority group, there are key distinctions between immigrant and US-born entrepreneurs. For example, US-born Mexican entrepreneurs are more motivated by the individualistic financial benefits of being an entrepreneur, while Mexican immigrant entrepreneurs are more motivated by serving society and their co-ethnic community. Implications are discussed.

Keywords: Minority entrepreneurship, Mexican American, motivation, ethnic enclave, business financing