Moroccan and Turkish entrepreneurs in the Netherlands

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VRIJE UNIVERSITEIT AMSTERDAM/UNIVERSITEIT VAN AMSTERDAM

Moroccan and Turkish

entrepreneurs in the

Netherlands

Master Scriptie

Entrepreneurship

Scriptiebegeleider: Roel van der Voort

Youri Pattynama

Amsterdam, april 2015 t/m juli 2015 2051702

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Abstract

Amsterdam is a city with the most nationalities in the world and many people dream of starting their own business, because people are searching for independency. Between 1960 and 1973 65,000 Turkish and 40,000 Moroccan immigrants went to the Netherlands and still they differ from the natives, when we talk about entrepreneurship.

The government tries to stimulate entrepreneurship. The premise of the government is that entrepreneurship provides not only employment, but also to stimulate integration. That is why self-employed immigrant entrepreneurs are rising, but still they are far behind of the native entrepreneurs.

Immigrant businesses are reflected in all kinds of industries. In general, they are concentrated on the bottom of these branches. Most of the time they have businesses that require simple-minded activities such as snack bars, bakeries, groceries etc. These activities have relatively few worries and are often technologically simple of nature. Further investments in these companies require less finance. Their businesses are mostly in poor neighborhoods where there are many ethnic groups. There they provide specific needs for their own ethnic group.

This study first looked at whether Turks and Moroccans differ from natives. There is hereby looked at the education, getting a bank loan, nurture, religion and social level. Then there is researched whether these variables have an effect on entrepreneurship, which is measured whether her or his business are successful or not. This is done by a questionnaire

Research has shown that many natives differ from Turks and Moroccans. Research has also shown that the variables education, bank loan, nurture, religion and social level have little or no impact on entrepreneurship. So there are other reasons why there still are not so many immigrant entrepreneurs.

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1. Introduction

1.1 Background information

In the Netherlands, the number of immigrant entrepreneurs is on the rise. Especially the Turkish-Dutch entrepreneurs have tripled over the last decade. In the past, Turkish-Dutch entrepreneurs mainly owned traditional Turkish businesses such as Döner kebab restaurants and tailors. However, as time passed, they slowly diversified into more professional fields of business such as accounting, real estate and physiotherapy (Rabobank, 2010). Furthermore, the Turks are also the most enterprising minority in the Netherlands. According to

ikwordzzper (2012), 70 percent of entrepreneurs quit their business after 4 years. Immigrant entrepreneurs are more likely to stop their business than natives. According to (Rabobank, 2010), 9 percent of the Turkish immigrants living in the Netherlands are self-employed, as opposed to the other big minorities which are less likely to start up their own business. For instance, 5,1 percent of the Surinam immigrants is self-employed, whilst for Moroccan and Antillean immigrants the percentage of self-employed entrepreneurs is 4.4 and 3.8 percent respectively. Despite the growing number of immigrant entrepreneurs in recent years, the percentage of immigrant entrepreneurs still falls short compared to that of native

entrepreneurs consisting of 14 percent. In addition to this, it is found that minority

entrepreneurs pursue a career in less professional sectors. Although the second generation of immigrant entrepreneurs has mainly chosen different economic activities than their parents, there is still a major difference in the sector choice of native entrepreneurs. The authors Beckers and Blumberg (2013) found that annual operating profits between 1999 and 2004 of five different immigrant groups are lower than the natives in every business sector. In

construction, trade, catering and transport industry, the average earnings of immigrant entrepreneurs are about 25 percent lower than that of their native peers in the industry. In 2000 this gap has increased. Overall, given the choice of sectors of the current immigrant entrepreneurs, especially the non-Western entrepreneurs will not give a good promise for the future.

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6 1.2 Relevance

Lots of studies have researched the relationship between racial differences and

entrepreneurship. Most of these studies, such as that of Koellinger and Minniti (2006), were conducted by scholars in the US and explain the differences between Afro-Americans and white Americans that are starting up their own business. However, there is a lack of such research in this field in the Netherlands. Amsterdam consists of 177 different nationalities, making it the city with the most nationalities of the world (Trouw, 2007). According to Baaz, the municipality of Amsterdam enhances the opportunities for high-growth startups (2015). Meaning that a well conducted research in the field of entrepreneurship amongst ethnic minorities would greatly benefit the city of Amsterdam.

1.3 Research question

The research objective of this paper is to examine why Turkish and Moroccan entrepreneurs have problems going through the direction phase and end their business after 4 to 6 years. The direction phase will be explained in section 2.2. Based on the information above, the

following research question is formulated:

Why are Turkish and Moroccan entrepreneurs in Amsterdam underrepresented in entrepreneurship in comparison to native entrepreneurs after the initial 4 to 6 years of starting a business?

In order to be able to answer this question, the following sub research questions need to be

answered first:

- What are the differences between natives, Turks and Moroccans? - What is the impact of education on entrepreneurship in Amsterdam - How does a bank loan influence entrepreneurship in Amsterdam? - How do culture influence entrepreneurship in Amsterdam?

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7 1.4 Outline

The remainder of this paper is organized as follows. Section 2, the literature review, is divided up into six parts. The first two parts of this section covers the theory about entrepreneurship in itself, followed by the other 4 parts which describe the theory on why minorities have

problems to continue their business. Section 3 will provide the design of the research and consists of two parts: Research design and the methodology. This section explains how this research question will be answered. It provides the working plan of the research, which describes the activities needed in order to answer the sub-questions and, consequently, the main question. Section 4 discusses the findings of the research. This is followed by section 5 which contains the discussion and the limitations of my research. Finally, in the last section there will be a conclusion containing the main arguments and the final answer to the main research question.

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2. Literature review

2.1 Entrepreneurship

Without entrepreneurship, our society would fail to exist. Entrepreneurship contributes to creating new jobs and stimulating economic growth. The existence of new and small businesses ensures the creation of many new jobs. Furthermore, new entrepreneurship is a source of renewal and innovation. People who are not able to find a steady job have the opportunity to acquire a better position in society through entrepreneurship. People choose entrepreneurship not only out of economic necessity, but also self-fulfillment and individual

development are important motivations (Van Engen, 2004). The common entrepreneur is described in different ways. Psychologists believe that an

entrepreneur is someone who looks for maximum profit through rational calculations.

Entrepreneurs are distinguished by their exceptional drive to achieve something. They are also prepared to take well-calculated risks. Their personal characteristics encourage them to take important decisions, innovate and to put a lot of effort and time into their business (Scase and Goffee, 1980). Sociologists, on the other hand, disagree with this view of the psychologists. They suggest that entrepreneurs mainly arise from social groups that are disadvantaged and discriminated (Scase and Goffee, 1980). Nowadays, the attention of scientists is on small and medium-sized enterprises (SMEs) and their role in the economy.

In the Netherlands, there are many different terms that are used to describe immigrants who own their own business. They are often referred to as foreign entrepreneurs, immigrant entrepreneurs, entrepreneurs from ethnic minorities and ethnic entrepreneurs. The word “immigrant entrepreneurship” is perhaps the most common term, however a clear definition is often not given. According to (van Amersfoort, 2004) ethnic entrepreneurship has four

characteristics. Firstly, ethnic entrepreneurs finance their business through their own

networking of friends, and family and private loans that are given in good faith. The second definition is that they often lack professional employees. The business is usually managed by the entrepreneur himself, his family members, other relatives and acquaintances. They are often not paid any hourly wages, but simply incentivized by their intrinsic value from the total yield. A third common feature is that the ethnic entrepreneur focuses on an ethnic clientele.

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For example Turkish driving schools focus their operations on a clientele which they are connected to and most of the time these are also Turkish people. Finally, the last definition introduced by van Amersfoort refers to the fact that the ethnic entrepreneur delivers a specific ethnic product and/or service for example like an Islamic butcher. This entrepreneur has mainly Muslim people as customers.

The terms ethnic and immigrant entrepreneurship suggest that it differs from the regular form of entrepreneurship. According to Rath (2002), in order to explain how entrepreneurship among immigrants is different from normal entrepreneurship, you must put them together. Essers et al., (2004) argue that there are a number of problems that have to do with the background and circumstances of immigrant entrepreneurs. Self-employed immigrants have specific strengths in comparison to the natives who start up a business. They have knowledge of a specific segment of the market and possess more knowledge about their own ethnic group market. The strong social networks and family ties that ethnic entrepreneurs often possess, gives them a greater possibility to acquire startup capital through family and friends. However, these strengths also have their downsides. First of all, immigrant entrepreneurs often only have a limited view of the general market. They have little knowledge of formal institutions and the services and opportunities such institutions have to offer. In addition, they may suffer from a lack of knowledge of the Dutch language and culture. This further

emphasizes the fact that the immigrant entrepreneur primarily depends on its own social network and that he often does not knows enough about the general business market.

According to Aldrich and Waldinger (1990), entrepreneurship means combining resources in innovative ways to create something of value. Especially the concepts of innovation and risk are important for immigrant entrepreneurship. Unfortunately, it is often the case that

immigrant entrepreneurs reproduce business idea. Instead of innovating new business

concepts they tend to stay in the sectors where their predecessors have had success. The great risks involved in the startup of a small business leads to immigrant entrepreneurs often remaining in the same industry (Peters, 2002). Immigrant entrepreneurs partially replace, but at the same time also complement the existing businesses, especially in subordinated

neighborhoods. Unfortunately, they often lack the potential to grow and sustain their enterprise. The reason for this is that immigrant entrepreneurs often start their career with small businesses that provide little capital. In addition, they often make use of simple technology and their businesses are very labor intensive.

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The advantage on the other hand is that they can run their businesses with great flexibility with the help from family and friends (Rath and Kloosterman, 1998).

2.2 Entrepreneurship in Amsterdam

Amsterdam is one of the most important economic regions of the Netherlands. This is

demonstrated by the share and the growth of regional gross product. The vitality of the urban economy, however, may also be examined by looking at the degree of entrepreneurship. Stimulating entrepreneurship helps strengthen the competitiveness of the Netherlands and Amsterdam. Therefore this stands on the economic agenda of both the government and the city of Amsterdam. The economic policy of the government is aimed at stimulating

entrepreneurship (Coalition Agreement, 2010). The idea is that the degree of entrepreneurship affects the innovative capacity and thus competitiveness of Western economies (Rutten et al., 2010). According to CBS (2013) Amsterdam has 81.000 enterprises and protrudes far above the rest of the cities (Baaz, 2015). The city of Amsterdam is divided into seven districts: Centre, North, East, South, West and Southeast. Nearly two-thirds of these firms can be found in the Centre, South and West districts of Amsterdam. In the districts outside the ring and in the North of Amsterdam you find fewer entrepreneurs. However, this does not mean that less people work in these areas. Westpoort (West), Southeast and also the Centre of districts are major employment areas for the city and surrounding cities.

Amsterdam consists mostly of small businesses. Two-thirds of companies in Amsterdam is a sole-trader and this is percentage is higher in the Netherlands in 2010 (57 %). These are mainly situated in West and East districts. The self-employed are entrepreneurs without employees who often work on behalf of several clients. According to OIS (2010) there are an estimated 42,000 freelancers in Amsterdam. Most of these freelancers are located in the districts South, West and Centre. In all districts (also in Westpoort and Southeast) businesses are decreasing in size. This trend is also emerging in the rest of the Netherlands and in many other Western countries that experienced the transition from an industrial to a post-industrial society. This transition refers to the switch from an efficiency-driven economy focused on competition by internal economies of scale to an innovation-driven economy by focusing on competition Entrepreneurship and Innovation (GEM, 2009)

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2.3 Different stages of entrepreneurship

Greiner (1998) identifies five stages of development in the growth of organizations in which each phase begins with a period of growth and stability and ultimately results in organizational change or a crisis. The solution of such a revolutionary period ultimately determines whether a company will continue to the next stage of development. The research of Greiner (1998) has shown that there are five dimensions that shape an organization development. These are the age and size of the organization, the development and revolution phase and the growth of the industry.

Exhibit 1: The five phases of growth (Greiner, 1998)

Each stage in the development organization has a dominant management style in order to achieve growth and each revolutionary period is characterized by a dominant management problem which must be solved in order to achieve growth.

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Greiner (1998) starts with the creativity phase in which many individualistic activities take place and where creativity dominates. There is plenty of informal foresight but a high chance of an emergence of a leadership crisis. There is high need for a professional and capable manager who can keep the organization together.

If the right manager is found there is a period of growth in the organization and the company will go in the direction phase. In this phase, there is directive leadership and which

consequently lead to good functional structures, accounting systems, goals and

communication platforms. After this stage, there is a decentralized organizational structure, which brings the company in the delegation-phase.

Characteristic of the delegation phase is that there is more responsibility given to managers and profit-sharing incentives and bonuses are used to motivate employees. The probability of a next crisis arises when the top management lose control and no longer have a clear vision on the functioning of the rest of the organization. Solving such a crisis can prove to be a difficult task. Companies that go further usually find a solution in the use of special coordination techniques.

In the coordination phase the management uses formal systems to obtain the necessary

coordination. Such coordination systems are more focused in order to achieve growth, then in order to obtain an efficient allocation of the resources of the company. Although a high degree of decision-making is given to the managers, they also need to control thecompany. Chances are that there is a crisis of confidence created between the line management and the staff. Both parties criticize the bureaucratic system in which they are situated. In short, the organization has become too big and too complex to be managed through formal programs and rigid systems. Greiner (1998) refers to this crisis a red tape crisis.

In the collaboration phase the formal verification is replaced by social control and self-discipline. This transition is difficult for the experts who developed the coordination system itself as well as for line managers who rely on formal methods and answers. This phase builds more flexible teams, sometimes a matrix organization, with new methods encouraged by the organization. Greiner (1998) is uncertain about the revolution in the collaboration phase. He expects that a crisis will occur around the mental ability of the workers who will become emotionally and physically exhausted by the intensity of teamwork and the pressure that is put on innovation.

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13 2.4 Moroccans and Turks

2.4.1 Background

This section describes the background data of Turks and Moroccans in the Netherlands. The migration histories are to a certain extent the same, but there are also some clear differences. During the 60s, the economic situation in Turkey and Morocco was very bad. Many male workers from rural areas could not find a job and forcing them to look for other opportunities in, for example, Europe. At the same time, the Dutch economy (and that of other Western countries) was rapidly growing and a shortage of workers at the bottom of the labor market structure started to emerge. This mainly occurred in the textile and metal industries. In the beginning, the shortage was being filled by workers various Southern European countries. Western countries then later turned to countries like Turkey and Morocco to recruit guest workers. From 1964 and 1969, the Netherlands started to invite Turkish and Moroccan workers, respectively, into the country. About half of the immigrant workers entered the Netherlands unofficial channels. It also often happened that these workers would first migrate to Belgium or Germany and then on the advice of family or friends move to the Netherlands (Pennix et al., 1993).

The average educational level in the rural areas where the Turks and Moroccans came from was very low. The only opportunities for education were at primary school. The opportunities were even more limited around that time in Morocco. The majority of Moroccan men only received primary education or the Koranic school. Some Turks had finished primary education and sometimes even went on to receive further education (Crul and Doomernik, 2003).

Because most industries where the Turks and Moroccans worked in were located in the big cities, these guest workers mainly also lived in the big cities. The housing in the larger cities was cheap but also of low quality. Often, they were housed in hostels and overcrowded apartments. The low-cost housing was often preferred over a slightly more

luxurious/expensive home because this way they would be able to make greater saving for their return to their families in Turkey or Morocco.

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The oil crisis brought an end to economic prosperity and lead to the Dutch government

breaking many recruitment contracts. Officially there were no immigrant workers that went to the Netherlands anymore. Both the immigrant workers themselves and the Dutch government were always convinced that the Turks and Moroccans would not permanently settle in the Netherlands. Most Turks and Moroccans wanted to earn a lot of money during their stay in the Netherlands in order to build a better life for them and their families after returning to their country of origin.

However, as time passed the migrants became alienated from their own country of origin as it took too long to earn enough money, meaning they had to stay in the Netherlands (Crul and Doomernik, 2003). Furthermore, because the economic situation in the countries of origin deteriorated, return to their own country was not a real option (Tesser et al., 1998). Instead of returning to their home country, the Turks and Moroccans remained in the Netherlands and decided to let their wives and children join them in the Netherlands. Such reunions lasted until the 80s. In more recent years family reunion has become the main reason for immigration. 2.4.2 Education

Since the chances of a person are largely determined by the education level of that particular person, an education has a major role in the integration of Turks and Moroccans in the Netherlands. The education system is divided into four consecutive education types:

preschool facilities, primary, secondary and higher education. It turns out that in all education levels and types, the performance of Moroccan, and mainly that of Turkish, students lacks in comparison to that of Dutch students.

The majority of the Turkish and Moroccan students in secondary education in the Netherlands follow the VMBO education. Turkish and Moroccan students also have higher school drop-out rates than indigenous children (3.7% and 3.3% respectively, compared to 2.4%). Turkish students have higher dropouts than Moroccan students (Jennissen and Hartgers, 2006). The percentage of natives that complete a higher education is higher than that of Turkish

and Moroccan students. Natives also need less time to finish their education than Turkish and Moroccan students. Especially Turkish men have a low success rate, after five years

only 37%, 57% of Turkish women, have a diploma, (Heide and Miltenburg, 2006). In the past, the difference in education between Turkish and Moroccan women

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This also related to the higher dropout rate among girls by Turkish marriages at young age.

Moroccan women have naturally split up into two groups. One group which is highly

educated, and another group which is less educated and has only finished primary education. Less educated means that people had almost no high degree (Pels and Gruijter, 2004). According to Robinson and Sexton (1993) education has a positive impact on self-employment and success.

This leads to the following hypotheses:

Hypotheses 1a: Turks and Moroccans are less educated than natives Hypotheses 1b: Education has a positive influence on entrepreneurship

2.5 Financing options

Many start-up firms have a lack of capital. To raise their capital they can search for external investors. One of the oldest forms to raise capital is a bank loan. Start-ups are usually

established by young entrepreneurs who lack capital. They generally tend to have difficulties securing a bank loan. In addition, the financial crisis has exacerbated the chances of getting a loan. Asterbroa and Bernhardt found a strong correlation between the ability to secure a bank loan and the survival of a start-up firm (Astebroa and Bernhardt’s, 2003). Furthermore, the authors stated that the correlation between a bank loan and sustainability is negative. The reason behind this is that many start-up firms searched for other funding. The first option young entrepreneurs tend to turn to is funding from people close in their network, often friends and/or family. Only after this option do they turn to other external financing sources (Calopa et al., 2014). The risks of this type of funding, is that it can create tensions between the family and/or friends and the entrepreneurs. Most of the time, this occurs if the business fails (Calopa et al., 2014). Another form of initial investment is referred to as seed

investments. These are investments of private investors who want to invest their money in start-up companies that have potential to be a successful. Initial investments are mostly needed in the early stages of the business cycle.

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These initial investments are needed in order to start production, develop technologies and to accelerate their growth (Calopa et al., 2014). Other external financing sources star-ups are business angels and venture capitalists.

Business angels provide capital to companies and support them to achieve their goals, by sharing their own knowledge and experience with the entrepreneur. In addition, business angels also share their business contacts.

The difference between internal sources and external sources of investments is that for external investments requires the need for a formal contract. Such a contract specifies the investment value, the investment time period, the investment price and the exit strategy (Calopa et al., 2014). Another external financial resource is a venture capitalist. Most of the time, these are funds from private investors. These investors look for businesses with potential to become successful. The entrepreneurs rather approach venture capitalist than business angels as they have more to capital (Calopa et al., 2014).

Blanchflower et al. (2003) researched whether discrimination exists within the small business credit market. Discrimination occurs if the loans are provided to entrepreneurs based on racial characteristics of the person requesting the loan. The authors found that 10 percent of the loans of whites are rejected whilst that figure is 28 percent when it comes to loans of immigrants.

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17 This leads to the following hypotheses:

Hypothesis 2a: The chance of getting a bank loan is lower with immigrants than with natives. Hypothesis 2b: Getting a bank loan has a positive influence on entrepreneurship

Major firms need a lot of capital to finance their business and therefore use more formal forms of finance. Because smaller companies need less capital, they tend to rely more on informal finance. This also includes money from family and friends. In return these lenders only want their money back, as they see it as an act in good faith towards the entrepreneur (Lee and Persson, 2012). Entrepreneurs who try to start a business use strong ties to lend money from their friends and family. There are however some difficulties for an entrepreneur to obtain finance. The first difficulty is related to the moral hazard problem. This concept explains that the entrepreneur makes daily business decisions which put the lender’s money at potential risk. If things go wrong, the lender is the one suffering most, if not all, consequences (Jones et al., 2014). The risk of losing is shared between the lender and the person who starts a business. The entrepreneur tends to take a higher risk than he/she would without using a source of investment. In addition, it is possible that entrepreneurs use the borrowed money for his/her own good (Jones et al., 2014). To prevent this, investors will try to monitor the

entrepreneurs (Jones et al., 2014). The second difficulty is the adverse selection problem. The ideas of a business owner are hard to judge. It is a difficult task for lenders to judge whether or not an entrepreneur requesting a loan is capable of managing a successful business, in order to repayment deadlines. Providing finance to start-ups is a highly risky investment, because the entrepreneur often has limited experience, unknown markets and liabilities of newness. Most lenders try to evaluate the investment and the entrepreneur’s credibility very accurately, in order to minimise potential losses (Jones et al, 2014). A third difficulty standing in the way of loans is known as information asymmetry. This theoretical concept occurs because lenders do not have the same knowledge as the business owner (Jones et al., 2014). It is generally know that entrepreneurs exactly know their own capabilities and knowledge better than the other people (Shane, 2000). Entrepreneurs must try to communicate their knowledge or capabilities to the financiers, so the financiers will get a better picture of their them as an entrepreneur. If the entrepreneurs fails to perform this task, the lender may be at risk if the entrepreneur his intensions and capabilities are misread (Jones et al., 2014).

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According to Rianne van der Aa (2011) a Muslim families tend to be closed towards people outside their own family. They have trouble transferring their knowledge to other people. According to Stewart (1996) being an extravert increases sales performance. Extraversion means being sociable and to be dominant and ambitious (Digman, 1990)

Hypothesis 3a: Turks and Moroccans are more inhibited and scarce with sharing information than natives.

Hypothesis 3b: Being inhibited and scarce with sharing information has a negative influence on entrepreneurship

2.5 Differences between cultures 2.6.1 Social

There are many different cultures in the world. According to Hofstede, we can divide the different cultures by using six concepts (Hofstede, 2011). House et al. (2004) tried to expand the theory of Hofstede. He included the theoretical concepts of human orientation and

performance orientation. The researchers Minkov and Blagoev (2011) validated the theory of Hofstede, but rejected the theory of House. According to them, the first dimension is the power distance. This dimension refers to that the lower class of the community accepts that the power in the community is unequally divided (Minkov, 2011). All the communities are unequal, however the one society is more unequal than the other (Triandis, 2004).

Furthermore, the second dimension is uncertainty avoidance. This illustrates to what extent people of a society feel comfortable or uncomfortable in situations that are unstructured, such as an environment that is new, unknown or different than normal (Hofstede, 2011). In the third dimension the extreme values are individualist and a collectivist. This means in how people integrate in groups (Hofstede, 2011). By cultures that are really individualists is expected that everybody take care of himself and their family. A collectivist person is somebody who is integrated in a social and cohesive society (House et al., 2004). In Muslim countries, families tend to be more individualistic than collectivistic.

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According to Autio et al. (2013) individualist countries have more entrepreneurs, but collectivist countries have more ambitious entrepreneurs. Collectivist entrepreneurs have more subsidies available and have less risk.

Hypothesis 4a: Turks and Moroccans score higher on individualism than natives

Hypothesis 4b: Scoring high on collectivism has a positive influence on entrepreneurship

2.6.2 Nurture

The fourth value is masculinity and femininity. This concept refers to the equality of gender roles. Femininity refers to modesty and caring. In feminine countries the women and men are almost equal from the feminine perspective. They are also assertive and competitive, but the men are still more masculine. In masculine countries women are not assertive and competitive (Hofstede, 2011). The fifth dimension is long term orientation. This describes to what extent individuals will look into the future (House et al., 2002). The last dimension in the Hofstede model is new and is indulgence versus restraint. In culture where indulgence is high people are free to do whatever they like to do. On the other hand, in cultures where restraint is high people are stricter by social norms (Minkov, 2007). In most Muslim countries an authoritarian upbringing is the most common upbringing. (Hofstede, 2011). According to Doepke and Zilibotti 2012 a strict upbringing can stifle entrepreneurship. Being authoritarian means that parents have high expectations of their kids and their rules are very strict. These rules must followed without any explanation. According to Baumrind (1991), the parents that are authoritarian are obedience and status-oriented. This kind of parenting often stimulate punishment and also discipline.

Hypothesis 5a: Turks and Moroccans have had a more authoritarian nurture than natives Hypothesis 5b: A non-authoritarian nurture has a positive influence on entrepreneurship

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20 2.6.3 Religion

Religion can play an important role in what parents think is important in raising a child. Parents can choose to give their children a religious nurture. The transfer of religion in nurture is often accompanied with strong family ties and authoritative parenting style. So religion can have an effect on family relationships and the parenting style of parents. Religious

communities often have different values than the dominate culture (Eldering, 2006). Important values, represented in a particular religion, can be converted into nurture goals. Research by Eldering (2006) has shown that religion affects the nurture goals of parents. Almost all Turks and Moroccans in the Netherlands from both the first and second generation acquiesces himself to Islam (Dagevos and Gijsberts, 2007). In pursuing their religion, there are differences between Turks and Moroccans. Moroccans are stricter with religious rules than Turks (Dagevos and Gijsberts, 2007).

Perhaps these differences in the experience of faith also cause differences in values around gender roles, which in turn may result in differences in nurture goals.

The shared belief in Islam also has many similarities between Turkish and Moroccan parents upbringing with regard to nurture. So it may be that the religious worldview of Islam on the equality between men and women has a positive influence on equality (Eldering, 2006). Besides similarities and differences within Islam, there can be agreement between different religions in certain values. It appears that religious people think that women can best have the responsibility for the household and think that it is important that they live with their parent till they get married. So the women in a religious family must take care of the family later and has no time to work or start their own company (Eldering, 2006). Also the religious men/ are an obstacle to the emancipation and freedom of Muslim women. The government does not want to interact in the redistribution of care responsibilities between men and women at home. This leads to the following hypotheses:

Hypothesis 6: Turkish and Moroccan women are lower represented in entrepreneurship than native women

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21 2.6.4 Autonomy

In the Moroccan culture it is expected that the young people show loyalty and respect to their parents and older relatives. When young people are disobedient, it is considered as a lack of respect. Especially with their daughters, parents expect a timid and humble attitude towards adults. Parents from Muslim communities believe that it is a good thing if their children have good manners at home, on the street and at school (Yerden, 2010). A daughter in a traditional Muslim family needs to help around in the household, starting from a young age. In

traditional Muslim families, the difference between girls and boys may be seen as a little bit extreme to outsiders. Boys have more freedom than girls. Girls get imposed more regulations and are more under parental control (Yerden, 2010). The girls get a lot of household’s tasks that they must complete, whilst the boys have almost nothing to do in the household. Moroccan parents believe that it is important that their children know their native language. The main reason behind this is that parents find it important that the children can

communicate with family members from Morocco (Pels, 2006). Parents think that it is

important for their children to be liked in Morocco, because in this way, their children remain attached to the country of origin and respect themselves as traditional Moroccans (van Keulen and Beurden, 2002). Moroccan parents received a strict upbringing. Some parents that have moved to the Netherlands therefore may adopt a less authoritarian upbringing than they received. The specific parenting behaviors that parents show is linked to the nurture goals that parents have with their own nurture in mind (Pels, 2004). Nurture goals are thus an important part of the upbringing.

According to Pels, nurture goals contain four key concepts: performance, compliance, autonomy and sociability (Pels, 1998). Performance concentrate on achieving good results, being diligent and serious about the future. Conformity refers to showing respect for the elderly, having good manners and obedience. Autonomy means responsibility, empowerment and self-confidence. Finally, sociability refers to communication, helpfulness and tolerance to others. Previous studies have shown that the importance parents attach to nurture goals can be partially determined by culture (Pels, 2004). Because parents have no successful position in society they find it important that their children do well in school. These parents emphasize the importance of education and training for their children’s future. Parents see education as a push in the direction of a good socio-economic position (Yerden, 2010).

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Parents support their children as much as possible in education and social careers. Social performance is an important educational goal in education. In the Moroccan culture, autonomy is less important in the upbringing of their children, whilst Dutch parents try to stimulate autonomy in the upbringing of their children (Pels, 2006). Autonomy refers to self-sufficient behavior in the interaction with the external environment. You can estimate whether you can do it on your own or that you need help. (Delfos, 2011). According to van Gelderen and Jansen (2006) not financial gain but autonomy is mentioned as an important motive to start a business.

Hypothesis 7a: Natives have had a more autonomic nurture than Turks and Moroccans. Hypothesis 7b: Having an autonomic nurture has a positive influence on entrepreneurship

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3. Design of the research and the methodology

3.1 Research model

In section 2 we discussed the different variables that can influence entrepreneurship. To summarize this influence will lead to the following conceptual model. The conceptual model indicates the relationships between on the one hand: Education, finance options, scarce with sharing information, Individualism, Strict upbringing and religion and on the other hand entrepreneurship. The boxes on the left represents the independent variables, the arrows represent the assumptions made regarding the effect that these conditions will have on

entrepreneurship. In this case four independent variables effects were assumed to be negative. The other three independent variables were assumed to be positive. The right box represents the depended variable.

Exhibit 3: Conceptual model Education

Getting a bank loan

Entrepreneurship Scarce with sharing

information Collectivism Authoritarian upbringing Autonomic Islam religion

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24 3.2 Methodology

In this section, the overview of the research will be discussed. Thereafter, the selected

instrument will be described and justified. Finally, the population sample and the recruitment of respondents / participants are discussed. Before an investigation can be carried out, we have to look the type of research that will be conducted. The study consists of two parts, namely a literature study and a questionnaire. The literature review was conducted as qualitative research. The literature review is based on multiple sources namely books, scientific publications, google scholar and the internet.

3.2.1 Questionnaire

On the basis of the information from the literature review, a questionnaire was prepared. The survey mainly focuses on closed questions, which is why the survey was conducted as

quantitative research. The reason behind this choice is the limited time period. The instrument we use in this research is the questionnaire. The questionnaire is a continuation of the

literature review, as the questions were prepared in cooperation with the review. The data found from the survey will explain if the hypotheses can be rejected or not. The sequence of the components and in the drafting of the questions there is taken in account the formulation of the question and the possible answers. There are no questions prepared that consist of two questions. In addition, there are also some standard answers. Through this kind of questions all possible answers are covered. In the build-up there is taking into account the design of the survey. For example, in the beginning asked relatively easy questions and then follow the important questions.Every hypothesis had two parts. First I want to know if the Turks or Moroccans are different from natives. After this comes the important part of the hypothesis: If this variable has influence on entrepreneurship. There are no unnecessary questions asked and the questions are all relevant to the research. Open questions are ruled out, but there are some semi-open questions. At the end of the survey there is the possibility for the respondent to make up for some comments about the questionnaire.

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25 3.2.2 Validity and Reliability

To ensure the validity of the examination, the different aspects of validity must be taken into account. Internal validity refers to the validity of the observed data between what is true, and what the respondents answer. External validity refers to whether or not it is valid to generalize the observed data for the entire population, then to say something about that population. Finally, construct validity refers to the validity of the terms used and how it is interpreted by the respondents. Besides the validity of the measurements, the reliability of the measurements must also be taken into consideration. Reliability is related to the quality of the test method (questionnaire), which suggests that the same data would be collected each time in repeated observations of the same phenomenon.

3.2.3 Population

We also need to determine the population, the whole group that can be investigated with the aid of a research method. The population of this research consists of all the ethnic

entrepreneurs, specifically Turks and Moroccan, in Amsterdam. After the determination of the research population, there is examined whether the entire population will be involved in the investigation or only a portion of the population. When one part of the entire population is included in a study, a valid sample must be taken. There are different ways of sampling which can be split up into two categories, namely probability sampling and non-probability

sampling. In this study a non-probability sampling method will be used known as purposive sampling. I will select a specific group of entrepreneurs who will be divided into groups of 3 ethnic groups: Turkish, Moroccan and Natives. To have a well representative sample of Amsterdam, I will conduct my research in every district of Amsterdam. To know for sure that the right people will conduct the questionnaire I will personally passing by the entrepreneurs at their businesses. So that we make sure that not employees or other people conduct the questionnaire

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4. Analysis

In this section the results of the questionnaire are explained. In the first part of this section the means and the percentages of the independent variables will be analyzed. Two variables will be analysed by the Chi square test. This test calculate whether the observed difference is significant. In other words: the difference is that you have found is not depended on chance? The other 5 variables will be analyzed by the ANOVA (F) test. This test analyze whether the population averages of two or more groups are different from each other. Furthermore, I will confirm whether or not the first parts of the hypotheses are true. If this is the case we can continue with testing the hypotheses. In the second part of this section the results of the correlation analysis will be explained. The correlation test examines whether two variables that are measured correlate with each other and thus have consistency. I will find out if all the second hypotheses are supported. Significance is an important term in statistics. Significance indicates whether something is convincingly. There is an effect, or was this by chance? The most common rule regarding significance is the 95% rule. This means that when we can say with 95% certainty that the effect does not arise by chance, we can assume that there is an effect. So we allow 5% chance of randomness. In the tables this is the asymp. Sig. (2-sided). 1.00 is 100 percent. In total there were 311 respondents, of which 81 Turkish entrepreneurs, 59 Moroccan entrepreneurs and 171 native entrepreneurs.

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27 4.1 Hypothesis testing among ethnicity

The literature review contained seven hypotheses. In the tables below the means and percentages are given by nationality.

Independent Variable Turks Moroccans Natives Nurture

(1=very strict, 5= very non strict)

2,209877 2,152542 3,543862

Kind of person

(1=very outgoing, 5= very inhibited)

2,851852 2,864407 2,292398

Autonomic

(1=very autonomic, 5= very heteronomous)

2,938272 2,932203 3,654971

Collectivist

(1=Individualist, 5= Collectivist)

2,555556 2,508475 3,561404

Exhibit 4: Table of means of independent variables among different ethnicity

Independent Variable 311 Turks 81 Moroccans 59 Natives 171

Bank loan 38 % 31 24 % 14 63 % 108 Women entrepreneurs 17 % 14 10 % 6 27 % 46 Education Nothing Secondary education MBO Bachelor Master 17 % 14 31 % 25 35 % 28 15% 12 2 % 2 32 % 19 14 % 8 37% 22 12 % 7 5 % 3 11 % 18 11 % 18 33 % 57 31 % 53 14 % 25

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H1a stated Turks and Moroccans are less educated than natives. In exhibit 6 you see that the Pearson's Chi-square has an asymptotic, 2-sided, significance, either a two-tailed p-value of 0.021, χ2(8) = 47.248. With a confidence level of 97.9%, we can conclude that there is a

difference in education level between Moroccan, Turks and Natives. In exhibit 5 you can see that 15 % and 2 % of the Turks are having a bachelor or a master degree. By the Moroccans this is 12 % and 5 %. This is much lower than the native’s respondents (31 % and 14 %). So H1a is supported. Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 47,248a 8 ,021 Likelihood Ratio 46,323 8 ,008 Linear-by-Linear Association 26,105 1 ,330 N of Valid Cases 311

a. 0 cells (0,0%) have expected count less than 5. The minimum expected count is 5,69.

Exhibit 6: Table of chi-square tests Education among different ethnicity

H2a stated that the chance of getting a bank loan is lower with immigrants than with whites. In exhibit 7 you see that the Pearson's Chi-square has an asymptotic, 2-sided, significance, either a two-tailed p-value of 0.001, χ2(2) = 32.515. With a confidence level of 99.9%, we can

conclude that there is a difference in getting a bank loan between Moroccan, Turks and Natives. In exhibit 5 you can see that 38 % of the Turkish respondents, 24 % of the Moroccan respondents have had a bank loan. This is much lower than the native’s respondents (63%). So hypothesis 2a is supported.

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29 Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 32,515a 2 ,001 Likelihood Ratio 33,536 2 ,000 Linear-by-Linear Association 18,900 1 ,000 N of Valid Cases 311

a. 0 cells (0,0%) have expected count less than 5. The minimum expected count is 29,03.

Exhibit 7: Table of chi-square tests Bank loan among different ethnicity

H3a stated that Muslim people are more inhibited and scarce with sharing information than natives. In exhibit 8 you see that the ANOVA (F) test gives a p-value of 0.001, F (310) = 12.024. With a confidence level of 99.9%, we can conclude that there is a difference in what

kind of person Moroccan, Turks and Natives are. In exhibit 4 you can see that how higher the number how more inhibited these people are. In the table of multiple of comparisons in exhibit 7 you can see that the mean difference between Turks and Moroccans is very low (0.13), and a p-value of 1.000. So we can say that there is not a significant difference between Turks and Moroccans. We can also see that the mean difference between Turks and Natives is 0.559, with a p-value of 0.001. And the mean difference between Moroccans and Natives is 0.572, with a p-value of 0.001. With a confidence level of 99.8%, we can conclude that there is a difference in in what kind of person Turks and Natives are and with a confidence level of 99.9 %, we can conclude that there is a difference in what kind of person Moroccan and Natives are. So hypothesis 3a is supported.

ANOVA SoortPersoon

Sum of Squares df Mean Square F Sig.

Between Groups 24,556 2 12,278 12,024 ,001

Within Groups 314,518 308 1,021

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30 Multiple Comparisons Dependent Variable: SoortPersoon

Bonferroni

(I) Afkomst (J) Afkomst

Mean

Difference (I-J) Std. Error Sig.

95% Confidence Interval Lower Bound Upper Bound

1 2 ,013 ,173 1,000 -,40 ,43 3 -,559* ,136 ,002 -,89 -,23 2 1 -,013 ,173 1,000 -,43 ,40 3 -,572* ,153 ,001 -,94 -,20 3 1 ,559* ,136 ,002 ,23 ,89 2 ,572* ,153 ,001 ,20 ,94

*. The mean difference is significant at the 0.05 level.

Exhibit 8: Table of ANOVA test of kind of person among different ethnicity

H4a stated that Muslim people score higher on individualism than natives. In exhibit 9 you see that the ANOVA (F) test gives a p-value of 0.001, F (310) = 36.198. With a confidence level of 99.9%, we can conclude that there is a difference in how collectivistic Moroccan, Turks and Natives are. In exhibit 4 you can see that how lower the number how more individualistic these people are. In the table of multiple of comparisons in exhibit 8 you can see that the mean difference between Turks and Moroccans is very low (0.047), and a p-value of 1.000. So we can say that there is not a significant difference between Turks and

Moroccans. We can also see that the mean difference between Turks and Natives is 1.006, with a p-value of 0.001. And the mean difference between Moroccans and Natives is 1.053, with a p-value of 0.001. With a confidence level of 99.9%, we can conclude that there is a difference in in what kind of person Turks and Natives are and with a confidence level of 99.9 %, we can conclude that there is a difference in what kind of person Moroccan and Natives are. So hypothesis 3a is supported.

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31 ANOVA Collectivistisch

Between Groups 81,059 2 40,529 36,198 ,001

Within Groups 344,851 308 1,120

Total 425,910 310

Multiple Comparisons Dependent Variable: Collectivistisch

Bonferroni

Mean

1 2 ,047 ,181 1,000 -,39 ,48 3 -1,006* ,143 ,001 -1,35 -,66 2 1 -,047 ,181 1,000 -,48 ,39 3 -1,053* ,160 ,001 -1,44 -,67 3 1 1,006* ,143 ,001 ,66 1,35 2 1,053* ,160 ,001 ,67 1,44

Exhibit 9: Table of ANOVA test collectivism among different ethnicity

H5a stated that Muslim people have had a more authoritarian nurture than natives. In exhibit 10 you see that the ANOVA (F) test gives a p-value of 0.001, F (310) = 54.780. With a

confidence level of 99.9%, we can conclude that there is a difference in the nurture among Moroccan, Turks and Natives. In exhibit 4 you can see that how lower the number how higher the strictness of their nurture. In the table of multiple of comparisons in exhibit 9 you can see that the mean difference between Turks and Moroccans is very low (0.057), and a p-value of 1.000. So we can say that there is not a significant difference between Turks and Moroccans. We can also see that the mean difference between Turks and Natives is 1.334, with a p-value of 0.001. And the mean difference between Moroccans and Natives is 1.391, with a p-value of 0.001. With a confidence level of 99.9 %, we can conclude that there is a difference in in what kind of person Turks and Natives are and with a confidence level of 99.9 %, we can conclude that there is a difference in what kind of person Moroccan and Natives are. So hypothesis 5a is supported.

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32 ANOVA Opvoeding

Between Groups 142,102 2 71,051 54,780 ,001

Within Groups 399,480 308 1,297

Total 541,582 310

Multiple Comparisons Dependent Variable: Opvoeding

Bonferroni

Mean

1 2 ,057 ,195 1,000 -,41 ,53 3 -1,334* ,154 ,001 -1,70 -,96 2 1 -,057 ,195 1,000 -,53 ,41 3 -1,391* ,172 ,001 -1,81 -,98 3 1 1,334* ,154 ,001 ,96 1,70 2 1,391* ,172 ,001 ,98 1,81

Exhibit 10: Table of ANOVA test of Nurture among different ethnicity

H6 stated Muslim women are lower represented in entrepreneurship than women in native societies. In exhibit 11 you see that the ANOVA (F) test gives a p-value of 0.015, F (310) = 4,254. With a confidence level of 98.5%, we can conclude that there is a difference in women

entrepreneurship between Moroccan, Turks and Natives. In the table of multiple of

comparisons in exhibit 10 you can see that the mean difference between Turks and Moroccans is very low (0.071), and a p-value of 0.981. So we can say that there is not a significant

difference between Turks and Moroccans. We can also see that the mean difference between Turks and Natives is 0.096, with a p-value of 0.239. And the mean difference between Moroccans and Natives is 0.167, with a p-value of 0.020. We can conclude that there is not a difference women entrepreneurship between Turks and Natives and with a confidence level of 97.2 %, we can conclude that there is a difference women entrepreneurship between

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33 ANOVA Geslacht

Between Groups 1,398 2 ,699 4,254 ,015

Within Groups 50,596 308 ,164

Total 51,994 310

Multiple Comparisons Dependent Variable: Geslacht

Bonferroni

Mean

1 2 ,071 ,069 ,918 -,10 ,24 3 -,096 ,055 ,239 -,23 ,04 2 1 -,071 ,069 ,918 -,24 ,10 3 -,167* ,061 ,020 -,31 -,02 3 1 ,096 ,055 ,239 -,04 ,23 2 ,167* ,061 ,020 ,02 ,31

Exhibit 11: Table of ANOVA test of gender among different ethnicity

H7a stated that Muslim people have had a less more autonomic nurture than natives. In exhibit 4 you can see that how lower the number how more autonomic these people are. In exhibit 12 you see that the ANOVA (F) test gives a p-value of 0.001, F (310) = 19.590. With

a confidence level of 99.9%, we can conclude that there is a difference in how autonomic Moroccan, Turks and Natives are. In the table of multiple of comparisons in exhibit 11 you can see that the mean difference between Turks and Moroccans is very low (0.006), and a p-value of 1.000. So we can say that there is not a significant difference between Turks and Moroccans. We can also see that the mean difference between Turks and Natives is 0.717, with a p-value of 0.001.

And the mean difference between Moroccans and Natives is 0.723, with a p-value of 0.001. With a confidence level of 99.9 %, we can conclude that there is a how autonomic Turks and Natives are and with a confidence level of 99.9 %, we can conclude that there is a difference in how autonomic Moroccan and Natives are. So hypothesis 7a is not supported.

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34 ANOVA Autonoom

Between Groups 39,824 2 19,912 19,590 ,001

Within Groups 313,063 308 1,016

Total 352,887 310

Multiple Comparisons Dependent Variable: Autonoom

Bonferroni

Mean

1 2 ,006 ,173 1,000 -,41 ,42 3 -,717* ,136 ,001 -1,04 -,39 2 1 -,006 ,173 1,000 -,42 ,41 3 -,723* ,152 ,001 -1,09 -,36 3 1 ,717* ,136 ,001 ,39 1,04 2 ,723* ,152 ,001 ,36 1,09

Exhibit 12: Table of ANOVA test of autonomic among different ethnicity

In every ANOVA and Chi square tables you can see that Turks and Moroccans not differ from each other. Only women entrepreneurship is different between Moroccans and Turks. At the end of the questionnaire I also stated that if the respondents had any comments on the questionnaire they could state it under the questionnaire. Nobody has write some marks about this questionnaire.

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4.2 Hypothesis among entrepreneurship testing

• 0.00 < r < 0.30: nauwelijks of geen correlatie • 0.30 < r < 0.50: lage correlatie

• 0.50< r < 0.70: middelmatige correlatie • 0.70 < r < 0.90: hoge correlatie • 0.90 < r < 1.00: zeer hoge correlatie

Exhibit 13: Table of correlations test of variables

H1b stated that education has a positive influence on entrepreneurship. In exhibit 13 you can see that Opleiding*Bedrijfsprestatie have a r = 0.100, with a p-value of 0.077. We can see that education not or barely correlate with being a good entrepreneur. So hypothesis 1b is rejected. H2b stated that getting a loan has a positive influence on entrepreneurship. In exhibit 13 you can see that BankLening*Bedrijfsprestatie have a r = 0.293, with a p-value of 0.001. We can see that getting funded not or barely correlate with being a good entrepreneur. So hypothesis 2b is rejected.

H3b stated that being inhibited and scarce with sharing information has a negative influence on entrepreneurship. In exhibit 13 you can see that SoortPersoon*Bedrijfsprestatie have a r = - 0.113, with a p-value of 0.046. We can see that being inhibited and scarce with sharing information not or barely correlate with being a good entrepreneur. So hypothesis 3b is rejected.

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H4b stated that scoring high on collectivism has a positive influence on entrepreneurship. In exhibit 13 you can see that Collectivistisch*Bedrijfsprestatie have a r = 0.306, with a p-value of 0.001. We can see that scoring high on collectivism not or barely correlate with being a good entrepreneur. So hypothesis 4b is rejected.

H5b stated that a non-authoritarian nurture has a positive influence on entrepreneurship. In exhibit 13 you can see that VrijeOpvoeding*Bedrijfsprestatie have a r = 0.309, with a p-value of 0.001. We can see that having had a non-authoritarian nurture has a low correlation with being a good entrepreneur. So hypothesis 5b is rejected.

H7b stated that having an autonomic nurture has a positive influence on entrepreneurship. In exhibit 13 you can see that Autonoom*Bedrijfsprestatie have a r = 0.309, with a p-value of 0.001. We can see that being autonomic has a low correlation with being a good entrepreneur. So hypothesis 7b is rejected.

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5 Conclusion & Discussion

This section begins with the conclusion of my research in which I answer the sub-questions and finally answer the main research question. Thereafter, in the discussion part, I will evaluate the study, discuss my expectations and possible causes and implications of the results, point out the limitations of the research and present suggestions for future research.

5.1 Conclusion

At the beginning of this paper, the following research question was asked: Why are Turkish and Moroccan entrepreneurs in Amsterdam underrepresented in entrepreneurship in comparison to native entrepreneurs after the initial 4 to 6 years of starting a business?

The answer of this main research question, can be found through firstly answering the following sub questions.

What are the differences between natives, Turks and Moroccans?

In order to find out if any independent variables influence the ability of being a good

entrepreneur, it is necessary to know whether natives differ from Turks and Moroccans. The analysis shows that Moroccans and natives differ significantly when it comes to education, finance options, upbringing, religion, collectivism, female entrepreneurship and being autonomic. Turks and natives also differ from each other on those same aspects, except from female entrepreneurship, in which the two groups are pretty similar.

What is the impact of education on entrepreneurship in Amsterdam?

Education has a big influence on the chances of securing a job. However, for the purpose of this research, it must be examined if education also influences the probability of becoming a good entrepreneur. The analysis shows that education has almost no significant impact on the survival of businesses in Amsterdam. Therefore, the factor of having a high educational degree or not, may be neglected for the purpose of this research.

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How do finance options influence entrepreneurship in Amsterdam?

In order to start and/or grow a business, funding options are vital. In the literature review, it can be seen that there are many types of funding options. Most of the time securing a loan from family and friends may be an option to start a business. However funding to

survive/grow usually requires a bank loan. The analysis shows that getting a bank loan has almost no impact on the survival of a business in Amsterdam.

How does culture influence entrepreneurship in Amsterdam?

In many cultures people have different habits. In the Muslim culture it is normal that families are individualistic, whilst in the Dutch culture it is normal for people to help each other achieve their goals. The analysis shows that being a collectivistic has a low impact on the survival of a business in Amsterdam.

What is the impact of nurture on entrepreneurship in Amsterdam?

Many Moroccans and Turks have had a really strict upbringing. Muslim parents strive for their children to be status-oriented. The analysis shows that the kind of upbringing does not impact the entrepreneur’s ability to sustain a business in Amsterdam.

In the analysis you see that almost no independent variable that was discussed has an impact on entrepreneurship in Amsterdam. Only being collectivistic, having a non-authoritarian upbringing and an autonomic upbringing have a low influence on entrepreneurship. The analysis also shows that almost every independent variable discussed, illustrates a difference between natives and Turks/Moroccans. To conclude, it can be stated that because

Turkish/Moroccans differ from natives, they are still underrepresented in entrepreneurship after initial 4 to 6 years of starting a business in Amsterdam. However, these variables have a low impact on being underrepresented in entrepreneurship after initial 4 to 6 years of starting a business in Amsterdam.

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39 5.2 Discussion

With my study, I managed to reach my population of interest. I did this by personally visiting entrepreneurs at their firms, in order to make sure that the respondents answering my

questionnaires were actually the people I aimed to address. The location of interest for this research was Amsterdam. I made sure to include all the districts of Amsterdam, thus creating a complete and representative picture of entrepreneurship in Amsterdam.

5.2.1 Limitations

It can be concluded that the first parts of the hypothesis are all supported by the research. However, the second part of the hypothesis is not supported in this research. This can be explained by the following reasons. First of all, respondents of questionnaires do not always tell the truth, or may exaggerate their answers if they know that their answers are being used for research purposes. It may be possible that these respondents were very busy with their businesses and thus did not have enough time and attention to thoroughly respond to this questionnaire. Also during this research, I found that many respondents dislike sharing information that they believe to be too personal. For instance, certain respondents did not feel comfortable sharing information about their company’s current performance or their level of education. Secondly, I visited shopping areas where many businesses are located, meaning that businesses located outside these shopping areas did not take part in the questionnaire. These businesses may differ from the businesses in the busy shopping areas.

Thirdly, there are 81.000 entrepreneurs in the city of Amsterdam and only 311 entrepreneurs took part in my questionnaire. This research may therefore lack representativeness and may have needed a bigger sample. However, the limitations of my resources did not allow me to do this.

Finally, some of the limitations of the questionnaire may include the fact that the research method that was used was purely quantitative. The data consists of only closed ended questions in the form of questionnaires. It might have been better to also conduct interviews with some of the immigrant entrepreneurs to come up with more variables that can have a negative influence on entrepreneurship. Furthermore, it may have been the case that certain questions were misunderstood, although I made sure to formulate these as simple and clear as possible.

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Many of the respondents did not fully master the Dutch language. Also a limitation of the questionnaire is that the answers are already given and can be interpreted differently from the way I interpret them. For example, some people may consider a certain level of performance as a healthy/good business, whilst others would not be satisfied with that same level of performance.

At last, exhibit 13 illustrates how the independent variables correlate which each other. Below you see how strong some variables correlate which each other if the r = n.

• 0.00 < r < 0.30: nauwelijks of geen correlatie • 0.30 < r < 0.50: lage correlatie

• 0.50< r < 0.70: middelmatige correlatie • 0.70 < r < 0.90: hoge correlatie • 0.90 < r < 1.00: zeer hoge correlatie

None of the variables correlate 100 % with each other. In addition, there are some low correlation coefficients. The variables ‘Collectivistisch*VrijeOpvoeding’ and

‘Collectivitsch*Autonoom’ have a score of 0,474 (0.000) and 0,478(0.000) respectively. This means that these 2 variables have a significantly low correlation with each other.

5.1.2 Further research

The previous section of this paper includes some of the limitations of this research. This section contains some recommendations for improvement for future research.

Firstly, future research may also, in addition to a questionnaire, conduct some interviews to come up with more variables. Besides, an interview will give some in depth information on why immigrant entrepreneurs still have problems with setting up a business. Another improvement would be to be present when the questions are being answered, in order to clarify any potential misunderstandings.

Secondly, future research may build upon my research by trying to reach more respondents to get a better view of the population. Also, it may be interesting to look at different cities or countries, if possible. For future research the questionnaire may also be sent by email and answer any questions the respondents may have through the telephone. This would allow the research to reach a greater audience as this would reduce costs.

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Finally, my research is a snapshot in time, as it merely looks at the performance at a specific moment in time. This may not explain why Turkish and Moroccan entrepreneurs often stop after 6 years of starting a business. Further research, may also conduct interviews and

questionnaires with entrepreneurs who used to own a business. This will create a clear image of the differences between entrepreneurs that have quit their business and entrepreneurs who still own their business.

Moroccan and Turkish entrepreneurs in the Netherlands