Intra-Community Fraud among UK and German Expatriate Entrepreneurs in Spain: A Trust and Social Networks-Based Explanation
In a recent comparative study undertaken in 2006, the present author investigated the business strategies of German and UK emigrant entrepreneurs based in Spain, with particular attention to their risk mitigation strategies and the role of trust and social networks in mitigating risks among these expatriate groups (see Wilson-Edwardes and Hoecht, 2008). While undertaking our empirical research, the author was alerted by interviewees and desk research to the substantial amount of intra-community fraud that takes place among UK and German emigrant entrepreneurs in Spain. This observation had not been anticipated when the initial research commenced, but it was later found that intra-community fraud within the German and UK expatriate communities in Spain is now such a widespread phenomenon that it has been featured in German media (for example, 3 SAT, 14 July 2006), and to a lesser extent in UK media. During the empirical research, it was found that almost all of the interviewees reported such intra-community fraud and all the key informants (solicitors, accountants and business advisors) reported such incidences.
KeywordsSocial Capital Host Society Risk Mitigation Strategy Fellow Group Member Contemporary Challenge
Unable to display preview. Download preview PDF.
- 3 SAT (14 July 2006, 20.15) ‘Mallorca: Paradies der Gesetzlosen?’ Documentary produced by E. Meinert and G. Enwaldt for NDR television in association with Arte television, broadcast by 3 SAT on 16 July at 20.15.Google Scholar
- Biggart, N.W. (2001) ‘Banking on each other: The situational logic of rotating savings and credit associations’, Advances in Qualitative Organization Research, 3, 129–53.Google Scholar
- Goel, S. and Karri, R. (2006) ‘Entrepreneurs, effectual logic and over-trust’, Entrepreneurship Theory and Practice, July, 477–93.Google Scholar
- Humphrey, J. and Schmitz, H. (1996) ‘Trust and economic development’, Discussion Paper No. 355, Institute of Development Studies, University of Sussex, Brighton.Google Scholar
- Metcalf, H., Modood, T. and Virdee, S. (1996) ‘Asian self-employment: The interaction of Culture and Economics in England’, Policy Studies Institute, London.Google Scholar
- Moellering, G. (2006) Trust: Reason, Routine, Reflexivity ( Oxford: Elsevier).Google Scholar
- Portes, A. (1994) ‘The informal economy and its paradoxes’, in N.J. Smesler and R. Swedberg (eds), The Handbook of Economic Sociology, 98, 426–49 ( New Jersey: Princeton University Press ).Google Scholar
- Ram, M. and Jones, T. (1998) ‘Ethnic Minorities in Business’, Small Business Research Trust Report, Milton Keynes.Google Scholar
- Wilson-Edwardes, L. and Hoecht, A. (2008) ‘Entrepreneurs and risk: A study of German and UK entrepreneurs in Spain’, Research Report to the Anglo-German Foundation, Project grant no 1507, available online, http://www.agf.org.uk/cms/upload/pdfs/R/2008_R1507_e_entrepreneurs_and_risk.pdf.Google Scholar
- Zucker, L. (1986) ‘Production of trust: Institutional sources of economic structure, 1840–1920’, Research in Organizational Behaviour, 8, 53–111.Google Scholar