Social Resources Generated by Group Support Networks May Not Be Beneficial to Asian Immigrant-Owned Small Businesses

The immigrant entrepreneur is often seen as a member of supportive peer and community subgroups. These networks assist in the creation and successful operation of firms by providing social resources in the form of customers, loyal employees, and financing. This study provides evidence that the success and survival patterns of Asian immigrant firms derive from their large investments of financial capital and the impressive educational credentials of the business owners. Heavy use of social support networks typifies the less profitable, more failure-prone small businesses of Asian immigrants.