The influence of social capital on risk-taking propensity. A study on Chinese immigrant entrepreneurs

Abstract

This paper studies the influence of social capital on immigrant entrepreneurs’ risk-taking propensity. The paper has a particular focus on Chinese immigrants and also explores the effects of the so-called “guanxi”, a specific form of social capital for Chinese communities. The empirical research is based on a survey conducted in 2012 on Chinese immigrant entrepreneurs in Andalusia (Spain). An ordinal logistic regression specification was employed to test the hypotheses. The results show that the Chinese immigrant entrepreneurs with greater structural, relational and cognitive social capital and better “guanxi” have a higher risk-taking propensity in their business activity.