Index and Abstracts
Volume 10, Number 1
April 2005

Refereed Articles

A Regional Comparison of the Motivation and Problems of Vietnamese Entrepreneurs
Cynthia Benzing, Hung Manh Chu and Gerard Callanan

Is There a Liquidity Crisis for Small, Black-Owned Firms?
Susan Coleman

Does Rural Location Matter? The Significance of a Rural Setting for Small Businesses
Jeffrey F. Shields

Traditional Farmers or Modern Businessmen? Religious Differentiation and Entrepreneurship in a Kleine Gemeinde Mennonite Community in Belize
Carel Roessingh and Amber Schoonderwoerd

Small Business Survival in China: Guanxi, Legitimacy and Social Capital
A. Elliott Castle Carlisle and Dave Flynn

A Regional Comparison of the Motivation and Problems of Vietnamese Entrepreneurs

Cynthia Benzing, Hung Manh Chu and Gerard Callanan

Abstract

This study assesses the motivations, perceived success factors, and business problems experienced by entrepreneurs in Vietnam. It also compares the results between the northern and southern regions of the country. Using data from a survey of 378 Vietnamese entrepreneurs in Hanoi and Ho Chi Minh City. Results show that Vietnamese entrepreneurs are motivated by the ability to provide jobs for themselves and family members, to gain public recognition, and to prove they can successfully run a business of their own. Important perceived entrepreneurial success factors include friendliness toward customers and a good product at a good price while significant business problems include too much competition, unreliable employees, and the inability to obtain both short-term and long-term capital. Results also show a number of city/regional differences in motivation, success factors, and perceived success. Implications for policymakers in Vietnam and other emerging economies are also presented.

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Is There a Liquidity Crisis for Small, Black-Owned Firms?

Susan Coleman

Abstract

Loans and trade credit are major sources of short-term debt and liquidity for small firms. This article uses data from the 1998 Survey of Small Business Finances to compare the borrowing experience of small firms owned by black men to those owned by white men. Results reveal that black firm owners were more dependent on loans from non-bank sources than white owners. Black men were significantly more likely to have been turned down for their most recent loan and were more likely to be discouraged from applying for loans. Results also reveal that black men were more likely to be turned down for trade credit. Overall, these findings seem to suggest that firms owned by black men have a more difficult time securing sources of short term debt than those owned by white men.

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Does Rural Location Matter? The Significance of a Rural Setting for Small Businesses

Jeffrey F. Shields

Abstract

Rural settings in the United States have characteristics that present a unique context for small business, often portrayed as adverse. Studies of rural entrepreneurs and small businesses, however, frequently fail to provide data on the rural context and its potential relationship to small business, taking for granted presumed attributes and adverse effects. To develop a better understanding of a rural setting's importance, this research investigated effects of rural geo-demographic and socio-cultural features on 76 small businesses. Results demonstrate that rural geo-demography adversely affects marketability of products and services, although there is little adversity for small businesses due to constrained resources (financing, technology, and transportation) or labor issues. Business owners manage their businesses consistent with rural socio-cultural values by relying on strong social ties and word of mouth reputation. However, women-owned businesses experience little adversity due to gender stereotypes. The rural setting considered in the study has varying implications for different types of businesses and for business owners according to how long they have lived in the community. Its effects are neither adverse in all respects nor universal for all small businesses.

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Traditional Farmers or Modern Businessmen? Religious Differentiation in a Kleine Gemeinde Mennonite Community in Belize

Carel Roessingh and Amber Schoonderwoerd

Abstract

This article addresses the religious and entrepreneurial differentiation within Spanish Lookout, a Mennonite community in Belize, Central America. Although most Mennonites live more or less on the edge of society, they have been able to establish a strong and stable economic position within Belize. Since their migration to Belize, the Mennonites of Spanish Lookout have developed a more differentiated economic system with commercial agriculture and agribusiness. The Mennonites maintain a remarkable transnational network, introducing innovations on different levels: from modern or better machines, to religious and social changes. The influences from Mennonites outside Belize on the social-economic system of the Spanish Lookout Mennonites, along with the developments within the community, constitute the main focus of this article.

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Small Business Survival in China: Guanxi, Legitmacy and Social Capital

A. Elliott Carlisle and Dave Flynn

Abstract

Previous research suggests that guanxi "costs" are significantly higher for private Chinese enterprises versus all other enterprise types, i.e., state, township and village (TVE), domestic and foreign enterprises. Also, consistent with its cultural context, guanxi is considered to be equally important in business as it is in life for all types of Chinese enterprises. Herein, the discussion is extended to describe the concept of guanxi as a means of garnering social capital in order to maintain legitimacy. Furthermore, some practical means are suggested for entrepreneurs and small business owners to build a necessary foundation for survival.

 

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