New Ryerson University Research Finds Immigrants Take Greater Business Risks
A new study from the Ted Rogers School of Management at Ryerson University investigates the role immigrant entrepreneurs play in global markets, finding that greater business risk does isn’t always worth the reward.
The recent study conducted by Dr. Horatio M. Morgan and Dr. Sui Sui, who both serve as Associate Professors of Global Management at the Ted Rogers School of Management. The research will be published in an upcoming issue of the Journal of Business Venturing. The publication is well-regarded within the industry, ranking 17th of the top 50 journals as named by Financial Times. The journal was also rated a four overall on a list from the Association of Business Schools (ABS).
Dr. Morgan and Dr. Sui’s study, entitled “Are SMEs With Immigrant Owners Exceptional Exporters?” looks into immigrant entrepreneurs and the type of risks they take on the global market. The research surveyed the export activity and profitability of almost 10,000 small and medium-sized businesses (SMEs) in Canada, finding that while immigrant owners were more involved in the exporting processes than similar businesses, they tended to be less successful financially.
The study acknowledges that immigrants may encounter obstacles in their financial success that are complex and difficult to measure, the research mostly suggests that psychological forces are more at work than economic ones. For instance, immigrant business owners may be more likely to take risks within certain global markets they feel more familiar with. But, according to Dr. Morgan, the consequences of this kind of risk taking can be grave, noting, “When things don’t work out on the international stage, they have a lot more to lose than Canadian-born entrepreneurs who are more cautious to begin with.”
Immigrant business-owners shouldn’t feel hopeless, however. Dr. Sui believes—and the research supports—the idea that immigrant entrepreneurs can absolutely reach their full potential, as long as they combine their unique insights with increased awareness and caution entering the import-export business.
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Alanna Shaffer
Staff Writer, covering MetroMBA's news beat for Atlanta, Houston, and Dallas.
