From a five-year research
programme based on a questionnaire survey targeted a total about 600 entrepreneurs
from different ethnic groups established in metropolitan; Montreal, Toronto and
Vancouver in Canada. Perreault, Brenner, Menzies, Filion, & Ramangalahy
(2007) have discovered a significant relationship between the social capital
and business performance of the people lived in these areas. Social capital was
measured using social, commercial or professional membership in co-ethnic
groups that the measurements refers to percentages supposing the respondents in
illegal or secret associations are working in good faith. For business performance
organizational data was considered, mainly the size of the business reflected
through number of employees working in the organization, The number of years in
the business and the business turnover of the financial qualification of firms. The main purpose of this research was to identify the
relationship between business performance and social capital for ethnic
entrepreneurs, in their various forms. They tested the concept and the hypothesis using four
ethnicities Group, Chinese, Italian, Sikh, and Jewish, lived in Montreal,
Toronto, Vancouver cities in Canada.Business performance negatively
associated with employee’s percentage which states that though there’s a higher
reliance within co-ethnic organizations lower performance was reflected. On the
other hand, membership of organizations has a positive effect on the
performance of ethnic businesses, because high-performing entrepreneurs are
members of co-ethnicity, which proves that membership in co-ethnic
organizations is more networking on their part reflecting as a more consistent
proxy for networking. However, they were able to estimate the membership of
high and low performing businesses from the selected social capital variables,
saying that social capital positively contributes to institutional performance.
Eventhough it is difficult to decide empirically
whether the use of social capital hinders performance, or whether poor performance
centrals to the use of social capital their empirical results are able to validate
commonly held views about social capital and
business performance.