Principal Topic

What differences can be observed between businesses and entrepreneurs of Chinese and Italian origin in Canada’s three main urban centres, Montréal, Toronto and Vancouver? This paper reports the results of comparative analyses based on the location, ethnic origin and sex of 286 entrepreneurs from Chinese and Italian backgrounds.

Method

Because of the size of the final sample of 2,400 respondents targeted by the research program, we conducted our inquiry using questionnaires. Each questionnaire was in two parts. The first dealt with the socio-demographic profile of the entrepreneur; the second dealt with the features of the business, the problems encountered, the approaches to partnerships, recruitment, purchasing and sales, the involvement in associations, and the perception of Canada. In order to increase the reliability of the responses, the questionnaire was administered in the field by researchers from the same ethnic group as the entrepreneurs being studied. To process the results, we first used descriptive analysis to isolate the characteristics of the respondents, their activities and their entrepreneurial experience. Next, we applied independence analysis (c²) and mean comparison analysis (Anova) in order to proceed with comparison tests based on the location, ethnic origin and sex of the respondents.

Results and Implications

Overall, the results show significant differences that are clearer for respondents’ ethnic origin than for location or sex. An analysis of the socio-demographic profile of the respondents shows that entrepreneurs of Chinese origin settled in Canada more recently, are younger and better educated, are less likely to have a family background in business, travel more frequently to their country of origin, and are more likely to use a language other than French or English at home and at work. Chinese entrepreneurs invested more substantial amounts of money in their businesses, and relied less on their families, friends and profits to cover financing needs. They employed less members of their own family, and recruited more from within their own ethnic group. Their businesses had lower turnover, and bought and sold more within the same ethnic group and the country of origin. From a theoretical point of view, the significant differences observed in connection with the ethnic origin of the entrepreneurs studied suggest the need to consider ethnic communities of entrepreneurs and their businesses as heterogeneous entities. On a practical level, the differences observed tend to suggest that policies and programs designed to support ethnic entrepreneurship should be adjusted to reflect features of each community.

CONTACT: Louis Jacques Filion, HEC, 3000 Ch. Cote Ste-Catherine, Montreal, Qc, Canada, H3T 2A7; (T) 514-340-6339; (F) 514-340-6382; louisjacques.filion@hec.ca