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• W1514497400 abstract "ABSTRACTLatino1 owned businesses experienced explosive growth and are expected to be a major player in the entrepreneurial landscape. While taking the lead in start-ups, ethnic and female entrepreneurs experience lower business performance. Thus, we explore the social networks of Latino business owners and the implications for venture growth (employee size) and sustainability (years in business). The data come from 176 business owners (56% Latino) participating in training in Chicago. We compared networking behaviors, size and frequency of contact with others for: a) Latino and non-Latino entrepreneurs and b) Latino male and Latina2 entrepreneurs. Latino entrepreneurs had fewer contacts and met with them less often than nonLatino owners but, focused on weak ties (other business owners, business associations) more than strong ties (family, friends). Latina entrepreneurs, compared to Latino males3, had fewer contacts and relied on strong ties more but weak ties less for business-related information. Finally, results showed a positive relation between frequency of contact and growth for Latino firms. Implications and future research involve increasing training to build networking skills among Latino entrepreneurs and further exploration of network properties for building firm sustainability. The findings show empirical and theoretical support for hypotheses with contributions to ethnic and female entrepreneurship.INTRODUCTIONAs of 2010, the Census Bureau reported that more than 48 million people of Hispanic origin live in the United States, making up 16% of the total U.S. population (U.S. Census Bureau, 2010). This makes Hispanics the fastest-growing minority group and this trend is projected to continue into the near future. The explosive growth of Latinos has meant an increase in the number of businesses started with an equally profound impact on the economy. Between 2002 and 2007, Latino-owned businesses as a whole grew by 43.7% and represented 8.3% of all small businesses (U.S Census Bureau, 2010). For Latinas, specifically, the growth in the number of ventures started shows a similar increasing trend (Smith-Hunter & Venezio, 2006). According to the U.S. Hispanic Chamber of Commerce, there are now nearly 3 million Hispanic-owned businesses in this country. Latino male and Latina owned businesses combined generate more than $400 billion annually in revenues.While growing in numbers and at a fast rate, businesses owned by Latinos are less financially sound and more likely to fail (Boden & Headd, 2002; Robb, 2002). Research on minority entrepreneurs including Latinos reports that they are more likely to start and fail at business start-ups than the majority population. (Brunner, 2011; Sullivan 2007). Indicators of performance also point to a lack of equality for female business owners - such as Latinas - as they experience lower annual sales, annual salaries, and firm survival rates than male owners (Green, Hart, Gatewood, Brush, & Carter, 2003; Robles & Cordero-Guzman, 2007). To help these businesses succeed, it has been recommended that minority and female entrepreneurs network more and develop strategic interpersonal contacts (Assudani, 2009; Hisrich & Brush, 1986; Ncube & Wasbum, 2010; Ram, 1994). In this study, we explore the degree to which this is a sound recommendation by studying Latino business owners' social networks - that is, the set of relationships designated by a business owner that provides resources to help start and run their businesses (BarNir & Smith, 2002). We do this by, first, comparing the composition of social networks as well as the networking behaviors of: a) Latino and non-Latino business owners and b) Latino male and Latina entrepreneurs. We then consider the implications of this recommendation by examining the linkage between properties of social networks, networking behaviors and the performance of Latino-owned ventures. In doing so, we begin to fill an area in the ethnic and ethnic female entrepreneurship literatures, which has not yet been fully explored. …" @default.
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• W1514497400 date "2015-01-01" @default.
• W1514497400 modified "2023-09-24" @default.
• W1514497400 title "Social Networks of Latino and Latina Entrepreneurs and Their Impact on Venture Performance" @default.
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