Small Business Economics

, Volume 13, Issue 1, pp 57–70 | Cite as

Determinants of South Asian Entrepreneurial Growth in Britain: A Multivariate Analysis

  • Anuradha Basu
  • Arati Goswami


This paper aims to contribute to our understanding of the factors influencing South Asian entrepreneurial growth in Britain. It develops a multivariate model along the lines of small business economics but includes cultural and social variables. The theoretical model specified assumes that cultural factors have an augmenting effect on socio-economic factors. A distinction is also drawn between initial entrepreneurial characteristics and later expansion strategies used. The empirical model, based on the general-to-specific approach, can explain almost 60 per cent of entrepreneurial growth. The results suggest that moving away from a style of management based on immigrant culture has a positive impact on growth. This requires greater delegation of responsibilities to non-family employees. At the same time, strengthening links with the country of origin has a positive impact on growth. While the commitment to work hard at start-up is essential, human capital factors like the entrepreneur's educational attainment and employee training appear to be more crucial than financial resources in contributing to growth.


Human Capital Positive Impact Educational Attainment Financial Resource Small Business 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Kluwer Academic Publishers 1999

Authors and Affiliations

  • Anuradha Basu
    • 1
  • Arati Goswami
    • 1
  1. 1.Department of Economics, WhiteknightsThe University of ReadingReadingU.K

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