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A Proposal for a Standard With Innovation Management System

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Entrepreneurial Capital: The Experience of Black African<br />

Migrant Women in Britain<br />

Thomas Domboka<br />

Leeds Metropolitan University, UK<br />

t.domboka5337@student.leedsmet.ac.uk<br />

Abstract: Entrepreneurial resources both financial and non-financial are essential <strong>for</strong> the success of any nascent<br />

entrepreneur. In many studies, greater emphasis has been placed on financial resources like the amount of cash<br />

one has or whether the prospective entrepreneur will be able to obtain financial assistance. In the context of<br />

migrant ethnic minority groups considering starting their own businesses, other <strong>for</strong>ms of non financial resources<br />

(human capital, social and cultural capital) are equally important and can to a large extend, determine the<br />

trajectory of their entrepreneurial ambitions. <strong>With</strong>in the ethnic minority groups, access to these sources varies<br />

and generally men have greater access to these resources than women due to a number of factors such as<br />

background, tradition and culture. Most studies have focused on certain ethnic groups such as Asian and<br />

Chinese women and little is known about the effect of these factors on black African women migrants operating<br />

their businesses in the Diaspora. This limitation has resulted in little being known about their experiences of<br />

starting and sustaining those businesses. This paper addresses this gap in academic fields of entrepreneurship<br />

through an investigation of the experiences of the 1 st generation migrant black African women entrepreneurs in<br />

the acquisition of entrepreneurial resources in Britain. The discussion that follows is based on theoretical and<br />

empirical evidence obtained during a recent study of 35 black African migrant women carried out in the West<br />

Midlands, United Kingdom. Preliminary findings suggests that the women have difficultly on accessing certain<br />

resources such as financial resources and the absence of close family and friends in the UK limit their ability to<br />

network and benefit from their social networks. Despite their lack of financial and social capital, they have<br />

reasonable amounts of human capital in the <strong>for</strong>m of education, training, work experience and experience from<br />

previous ownership of businesses. The implications of this are that without the necessary institutional and<br />

Government support in the areas they are deficient in, they may find it difficult to start businesses that develop<br />

beyond subsistence level.<br />

Keywords: black African migrant women, entrepreneurial capital, ethnic minority, migrant entrepreneurship<br />

1. Introduction<br />

The subject of capital is considered important in any entrepreneurship studies and the role it plays in<br />

influencing the trajectory of any business venture. In small business entrepreneurship this capital is<br />

often referred to as entrepreneurial capital and it is made up of three elements (four <strong>for</strong> migrants)<br />

namely; human capital which consists of the attributes, background and characteristics of the<br />

entrepreneur; social capital - which is the ability of the entrepreneur to <strong>for</strong>m or be involved in social<br />

and business networks through which the entrepreneur can obtain in<strong>for</strong>mation, advice and support;<br />

financial capital - sometimes referred to as economic capital which is the amount of cash and assets<br />

at the disposal of the entrepreneur; and <strong>for</strong> ethnic migrants, cultural capital which are the traditions<br />

and shared values shared by some ethnic groups. Early studies have shown that migrants and<br />

particularly migrant women and other ethnic minority groups often start businesses with fewer<br />

entrepreneurial resources. They lack of human capital due to <strong>for</strong> instance negative labour market and<br />

managerial experiences (Carter et al. (1997): Fielden, et al. 2003), fewer financial resources resulting<br />

in undercapitalization of their businesses (Marlow and Patton (2005); Shaw et al, (2005), and they<br />

have limited social networks (Shaw et al, (2005) : Fuller-Love et al., (2006) : Aldrich (1989).<br />

This paper explores the entrepreneurial resources at the disposal of black African migrant women<br />

entrepreneurs and the impact they have on their ability to start and sustain their own businesses. The<br />

paper specifically focuses on 1 st generation Black African migrant female entrepreneurs who have<br />

settled in the United Kingdom in the past decade and considers their experiences and challenges in<br />

relation to these resources.<br />

2. Literature review<br />

Firkin (2003) introduced the concept of entrepreneurial capital as a way of explaining the importance<br />

of both financial and non-capital capital to the entrepreneur. The amount and type of entrepreneurial<br />

capital available to an individual can have a significant impact on the individual’s experience of<br />

business ownership and the growth of the business. Firkin’s view was influenced by the work of<br />

Bourdieu (1986) who argued that the amounts and types of capital in an individual’s possession and<br />

the values attached to such capital determine his/her position in as far as business ownership is<br />

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