Filipino ethnic entrepreneurship: An integrated review and propositions

Abstract

With a large percentage of its population as overseas workers or emigrants, a number now in the millions and likely grow even larger, an examination is appropriate of the entrepreneurial challenges and opportunities faced by emigrants from the Philippines. This study explores the factors that shape entrepreneurship among emigrants in general and, in particular, among Filipinos in the United States of America. Integrating literature from a variety of sources relating to the migration of Filipinos and the creation and management of new ventures by ethnic entrepreneurs in the United States, it proposes a general model of ethnic entrepreneurship, develops propositions relating to the propensity of Filipino emigrants to establish entrepreneurial ventures, and concludes with suggestions for future research.The global environment has provided opportunities for intensive migrant flows and cultural propagation across countries. Cohen (1997) alluded to the existence of a contemporary society offering unending streams of destinations resulting in the convergence of national frameworks, yet Brah (1991) argued that, within this Int Entrep Manag J (2007) 3: [69][70][71][72][73][74][75][76][77][78][79][80][81][82][83][84][85]

Entrepreneurship and Growth in Emerging Mini-dragon Economies: A South-East Asia Perspective

“…Filipino culture has high power distance, high masculinity, and low uncertainty avoidance and from this perspective, the Filipino culture seems to be favourably disposed towards entrepreneurship, except on the dimension of individualism (Johnson, Munoz, & Alon, 2007) that may adversely impact entrepreneurial tendencies. As the relationship between socio-cultural values and entrepreneurial environment has been discussed in literature (Begley & Tan, 2001), the value of sharing among Filipinos can curtail business propensity and efficiencies, and the moral pressure of obligatory sharing has hindered entrepreneurial Filipinos from engaging in commerce (Johnson, Munoz, & Alon, 2007).…”

“…As the relationship between socio-cultural values and entrepreneurial environment has been discussed in literature (Begley & Tan, 2001), the value of sharing among Filipinos can curtail business propensity and efficiencies, and the moral pressure of obligatory sharing has hindered entrepreneurial Filipinos from engaging in commerce (Johnson, Munoz, & Alon, 2007).…”

“…The economic environment of the Philippines is exacerbated by several factors such as drastic currency devaluation, a huge annual government budget deficit, socio-political risks due to law and order concerns, allegations of bribery, level of unemployment and the prevalence of labour migration (Johnson, Munoz, & Alon, 2007). In addition to that SMEs suffered from several problems including lack of credit, lack of business linkages, relatively high cost of doing business, and lack of requisite skills for global competitiveness (Batalla, 2010).…”

“…This provides the setting for the massive exodus of Philippine labour in the closing decades of the 20th century (Batalla, 2010). Philippines is the largest labour exporter in Asia, having sent over 7.4 million people, or 22% of its entire labour force of 30 million, to over 120 countries (Johnson, Munoz, & Alon, 2007).…”

“…Having a strong tradition of powerful social institutions (Johnson, Munoz, & Alon, 2007), Filipino entrepreneurs do not place high value on entrepreneurial qualities of being independent and being creative showing strong influence of the Catholic and American heritage (Uy, 2011).…”