How to reduce the financial difficulties of immigrant entrepreneurs
by Elva Alicia Ramos-Escobar; Domingo García-Pérez-de-Lema; Luis Enrique Valdez-Juárez
International Journal of Entrepreneurial Venturing (IJEV), Vol. 16, No. 1, 2024

Abstract: The main purpose of this study is to analyse how to reduce the financial difficulties faced by Mexican immigrant entrepreneurs in the USA and to enhance their relationship with human capital, social capital and management capacity. Access to financing is a priority issue for the development of immigrant businesses. The novelty of this work is to jointly address different competitive factors that can help reduce financial difficulties. A structural equation model (SEM) was developed using the partial least squares regression method (PLS) with a sample of 166 Mexican immigrant entrepreneurs whose companies operate in the city of Tucson, Arizona, in the USA. The results highlight the importance of human and social capital and the management capacity to access financial resources. In addition, it was observed that management capacity has a mediating effect between human capital and social capital, helping to minimise the financial difficulties of entrepreneurs. These results have important management and public policy implications for the growth and financial performance of immigrant companies.

Online publication date: Tue, 30-Apr-2024

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