Asian Owned Business Case Study
Document Type:Research Paper
This study, therefore, seeks to explore reasons as to why Asian-owned businesses performed well in comparison to white-owned and black-owned businesses. It aims to find out the trends in minority business ownership and performance. The importance of business experience to run smoothly: the importance of human capital in the managing of business while training new staff, financial capital and family business background concerning sourcing of capital. How Asian-Americans sourced capital for diverse businesses, the methods of collecting information concerning the Asian-American and the hurdles that preclude the immigrants from conducting business with ease. Table of Contents Abstract 1 Chapter 1: Introduction 3 Importance of the Study 4 Chapter 2: Literature Review 7 Chapter 3: Research Methodology 11 Research Methods 11 Research Process 12 Sampling 12 Data Collection and Analysis 12 Chapter 4: Results 13 Asian-Americans growing population and characteristics 13 What defines them? 13 The Asian-Americans identity 13 Opportunities in the United States 14 Education 14 Career and prosperity 14 Chapter 5: Discussion 15 Limitations faced by Asian-American immigrants while conducting business 17 Research Contributions 18 Research Limitations 19 Directions for Future Research 19 Chapter 6: Summary and Conclusion 20 Works Cited 21 Chapter 1: Introduction The 21st century has observed the revolution of the United States from the predominant white populace which is ingrained in the western values towards a culture which is rich in a collection of racial-ethnic subgroups.
In the United States, the economic conditions of the minorities remain far from being stable. Minorities are still faced with the problem of unemployment, lower household income, higher poverty rates and the problem of failing to receive the benefits of economic progression. Asian Americans still hurt with this recession, despite the Asian-American coping better in employment markets. Inadequate data inhibits the multiplicity inside the Asian –American public. This makes it hard to ascertain the effects of the downturn on diverse ethnic groups although current data shows clearly how operational variations vary in the American budget in times of financial decline and monetary growth. This, in essence, informs the specific policies that address the atrocities of the general public as well as the society’s wellbeing.
Vices such as crimes are mostly associated with the lower classes of persons in the society who are mostly immigrants whom in this case represent the minority groups. This study, therefore, expounds on those items that affect the economic development of Asian American owned businesses among these minority groups. Factors such as employment are crucial elements in the economic development of minorities. The unemployment rate is the most used indicator for assessing the labor market. The disparity has only enlarged during the onset of the last commercial phase. Part-time work is an additional pointer of the labor market. The rising of reliant work such as the contingent job or temporary employment by the Asian American owned businesses was a milestone on their part since the Asian Americans were doing considerably well in business compared to other minorities in America.
Those who joined their friends in America were welcomed well and indeed get trained on models of doing business. Those who had the desire to start own business would access financing from friends or relatives. Home ownership is the biggest and most widely used asset in assessing economic security. It gives an understanding of the effects of the economic development of the population. Home ownership had increased for Asian Americans in the last years of the decade by 75. percent compared to other Hispanics whose rates are considerably lower at less than 50 percent from data that is not seasonally adjusted. Chapter 2: Literature Review According to Gustavo et al. From the above statistics, Asians will eventually become the most significant immigration group living in the country.
Asians do well economically compared with the American population as a whole although it varies widely among the Asian groups. The household income for the Asian Americans is $73,000 compared with $53,000 among all United States households. Regarding education, 50% of Asian Americans aged over 25 years have a bachelor’s degree compared to 30% of Americans of the same age. A recent survey available indicates that businesses owned by Asian-Americans living in California are increasing in numbers and triggering higher earnings than other companies in California combined (Fairlie et al. According to the executive director at the center, the Asian enterprises have outperformed the rest regarding growth and size. “Some researchers had reported the growth to be as a result of the recession, but as current studies indicate, the businesses are thriving” (Nightingale np.
Other key findings show that Asian-owned businesses in California generate more revenues which add up to over 15% of the region’s total trade returns. In the U. S. When data is taken from samples of the community, information of other ethnic groups such as the Koreans, Vietnamese and Japanese is not captured. However, recent studies have allowed us to look at the underlying differences in the economic and social status of the entire Asian American community. The numbers of employed people vary among the Asian subgroups (Fairlie et al. np. There are more Asian Indians with bachelor’s degree that the Filipinos and the Vietnamese. Such economic growth attracts attention from other businesses. The Asian-American enterprise landscape has thrived in recent years particularly in emerging industries (Jesse et al.
Business innovations have created more job opportunities in the digital economy. The Asian-Americans control more than two million enterprises nationwide. Higher population growth, combined with fast- evolving technological innovations has created many opportunities for the Asian-American community. Bureaucratic legislations regulating financial institution in the country may be another reason. These Ethnic groups mostly depend on financial assistance from people of their ethnic community. Apart from being the source of financing for their people, Asian-Americans entrepreneurs are the main source of employment to their ethnic groups. Most of these business people join the Rotating Credit Associations (ROSCAs). A member of ROSCAs, an ethnic entrepreneur, can easily borrow money for starting a business without going to the bank of financial lenders (Gustavo et al.
Qualitative research was conducted to provide an in-depth understanding of the minority economic development in the United States. The results of this study are very much informed through the secondary survey from previous researches. Accurate data was collected through primary research. Unsubstantiated data is not included in this study. This research methodology provides a framework that was used to describe, explain and predict the Asian-American minority economic development. The questionnaires were used to guide the conversation between the researcher and the respondents. Research Process During the research, the respondents were approached politely, and they were required to give information voluntarily. Each question was explained to the respondents step by step in a value-neutral manner. It ensured that the data collected was accurate and reliable.
Some data with huge variations was disregarded as incorrect (Murphy and Keeping 1892). Open-ended questionnaires were used to conduct face to face interviews. Additional information gathered during the conversation was also recorded. An interpreter was available during data collection to assist the respondents that had difficulty communicating in the English language. The data collected was analyzed and summarized to enable easy interpretation and presentation. Data analytical application was used to provide patterns, relationships, and trends. The Asian-Americans identity Many Asian-Americans identify themselves by their native countries. Only one-fifth of the group consider themselves as “Asian-Americans. ” 75% of these people who are above the age of 18 years were born outside the United States. Half of the Asian immigrants are confident about their proficiency in English.
Opportunities in the United States Asian-Americans are more successful in education, career, and business than other people in the country. Career and Prosperity Only 11% of Asian-Americans live in poverty which is below the United States Share of 13%. Most of them are financially stable. Chapter 5: Discussion Taking the risk to start a business and working hard to sustain it is the story experienced by millions of Asians in America. They form the leading actors in the U. S financial economy; the entrepreneurial contributions range across all segments that touch the lives of almost all citizens (Crane, p. This shift in the rapidly evolving demographics in the U. S combined with the fast-evolving innovativeness in technology creates diverse opportunities for Asian American along with other varied, diverse business.
Recently, the Asian American community is one of the fastest growing populace in the U. S. In light of the pew research Centre and United States Census, the demography of the Asian Americans grew at 72 percent around 2000 and 2015- from 11. For these reasons, ethnic entrepreneurs are dependent on their ethnic group for funding, customer base as well as for labor and supply (Min, p. This practice is common with rotating credit associations (ROSCAs). The ROSCAs allows ethnic investors to secure financing for starting a business without having to loan from banks. This is an excellent alternative for immigrants who may otherwise not qualify for loans due to reasons like lack of collaterals, lack of business experiences and sometimes due to language barriers (Bruton, p.
With a marked shift from governmental contracting towards technical innovations has boosted the entrepreneurial abilities of the Asian immigrants which in turn have seen an influx in the diaspora workforce. This means that financing options remain to take loans from banks, family and friends, sometimes from rotating credit associations or resources that one may bring from home. While most immigrant businesses tend to cater most to members of their ethnic group, many try to cater to ethnic neighborhood and community. The main problem in meeting this economic hurdle is the problem of having to recruit new employees, not from the ethnic group. This results in a greater problem than even securing finances. Research Contributions An important role that should be played by immigrants and their offspring in attempts to influence the foreign policy of the country hosting them should be based on their self-definition and more on the attitude of the hosting society towards the immigrants.
The group of interest that is the Asian-American community is large which made the sampling process challenging. Some respondents were not willing to disclose some relevant personal information such as age, income, and country of origin. It was a difficult task trying to explain to them the purpose of the research to seek their corporation. The language barrier was also a significant problem in some situations where the respondents could not understand English. An interpreter was hired to assist in such cases. The economic growth wise is also remarkable. The group has also made an immense contribution to the general economic growth of this country. The general public and other immigrants can learn on the best practices from the Asian-Americans that would help them achieve successes in various fields such as business, career, and education.
In conclusion, the study has demonstrated clearly that minority economic development in the United States is on the rise. Information gathered about the Asian-owned businesses in the country indicates higher revenue generated which is increasing every year. Res. Bull. Bruton, Garry D. et al. State-owned enterprises around the world as hybrid organizations. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, 2016. Fairlie, Robert W. and Alicia M. Robb. López, Gustavo et al. Key Facts About Asian Americans". Pew Research Center, 2018, http://www. pewresearch. org/fact-tank/2017/09/08/key-facts-about-asian-americans/. In Academy of Management Proceedings (Vol. No. p. Briarcliff Manor, NY 10510: Academy of Management. Nightingale, Sarah. Witt, Michael A. and Gordon Redding. Asian business systems: Institutional comparison, clusters and implications for varieties of capitalism and business systems theory.
Socio-Economic Review 11.
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