Journal of Small Business and Enterprise Development

The relationship between an entrepreneur's culture and the entrepreneurial behaviour

of the firm
Levent Altinay,
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Levent Altinay, (2008) "The relationship between an entrepreneur's culture and the entrepreneurial
behaviour of the firm", Journal of Small Business and Enterprise Development, Vol. 15 Issue: 1,
pp.111-129, doi: 10.1108/14626000810850874
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Entrepreneurial
The relationship between an behaviour of the
entrepreneurs culture and firm
the entrepreneurial behaviour
111
of the firm
Levent Altinay
Department of Hospitality, Leisure and Tourism Management,
The Business School, Oxford Brookes University, Oxford, UK

Abstract
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Purpose This paper seeks to evaluate the relationship between Turkish entrepreneurs cultural
attributes and the entrepreneurial behaviour of their firms.
Design/methodology/approach The paper reports and analyses the findings of 227 face-to-face
structured interviews with Turkish entrepreneurs.
Findings This study illustrates that there is a strong relationship between the religion of an
entrepreneur and the firms recruitment, market segmentation and advice-seeking practices. The
English fluency of the entrepreneurs also influences their choice of using formal channels for advice.
Research limitations/implications Data collection was limited to London, and non-Turkish
entrepreneurs were excluded. Therefore, care should be taken in making generalisations from the
sample.
Practical implications This paper identifies those cultural attributes of the ethnic entrepreneurs
that need to be aligned with the wider economic environment of the host country.
Originality/value This study focuses on the most critical player in an ethnic firm the owner. It
evaluates the linkage between the cultural attributes of the owner and the entrepreneurial behaviour of
the firm.
Keywords Entrepreneurialism, Business ethnics, Organizational behaviour, Education, Language,
Turkey
Paper type Research paper

Introduction
Recent studies showed that if ethnic businesses stay within their community, then their
business growth is limited. Inability to attract customers from outside of the ethnic
market, heavy reliance on unskilled co-ethnic labour, poor advice and limited capital
are the key constraints limiting the growth of ethnic businesses (Altinay and Altinay,
2006; Basu and Altinay, 2002; Barrett et al., 2002; Jamal, 2005; Nwankwo, 2005; Schnell
and Sofer, 2002). Therefore, to enable the growth of a business, a strategic breakout
into the mainstream markets is needed. This, however, requires innovation the
notion of openness to new ideas as an aspect of a firms culture (Hurley and Hult, 1998,
p. 44). Bamberger (1982) suggests that owners values and backgrounds are important
determinants of a small firms culture and its business practices. He states that: Journal of Small Business and
Enterprise Development
Vol. 15 No. 1, 2008
The author would like to acknowledge the support of The British Academy for the project The pp. 111-129
q Emerald Group Publishing Limited
Interrelationship between Culture and Entrepreneurship: An Exploration of Londons Turkish 1462-6004
Businesses (Project Reference: SG40942). DOI 10.1108/14626000810850874
 JSBED The managers value systems determine whether a firm pursues the objective of growth or
independence, diversifies, enters foreign markets, adopts an active or passive behaviour on
15,1 the market . . . (Bamberger, 1982, p. 46).
Confirming these arguments, Lumpkin and Dess (1996) also advocate that a small
firms orientation is grounded in the values, intentions and actions of the individual
who is in charge; a small firm is simply an extension of the individual entrepreneur,
112 and therefore influenced by the inherent characteristics of the entrepreneur.
Looking at the inherent characteristics of the entrepreneur, ethnic minority
entrepreneurship literature suggests that cultural attributes of the entrepreneur
including education, language and religion play an important role in developing
entrepreneurial abilities and contributing to the survival of the entrepreneurs business
(Altinay and Altinay, 2006; Basu and Altinay, 2002; Basu and Goswami, 1999; Casson,
1991). However, in empirical terms, the relationships between the cultural attributes of
the entrepreneur and the entrepreneurial behaviour of the firm, still need to be
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investigated. It is still not known whether the differences in the cultural backgrounds
of the entrepreneurs lead to any differences in their reliance on their ethnic resources, in
other words, on the use of ethnic capital, labour, advice and customers. Given this, this
paper aims to evaluate the relationship between Turkish entrepreneurs cultural
attributes and the entrepreneurial behaviour of their firms.
In this study, cultural attributes are operationalised in terms of: religion; the attitude
to education, since they both shape values and beliefs (Basu and Altinay, 2002), and an
entrepreneurs cultural skills (e.g. English fluency), since they are crucial in accessing
and leveraging social, financial and organisational resources (Ucbasaran et al., 2003,
Westhead and Cowling, 1995).
The entrepreneurial behaviour of the firm will be analysed in terms of the ethnic
firms reliance on co-ethnic capital, co-ethnic labour, co-ethnic information, since
during the early stages of their growth ethnic minority business survival depends on
ethnic resources (networks) such as access to cheap family labour and close community
networks which may offer advice and low-cost capital (Fadahunsi et al., 2000;
Waldinger et al., 1990), and co-ethnic market, since dealing with co-ethnic customers
influences business growth because it may be easier to transact business in a language
with which the entrepreneur is familiar (Werbner, 1990). The above classification of
cultural attributes and entrepreneurial behaviours is based on the broad guidelines
offered by the findings of previous research on ethnic enterprises (see Basu and
Goswami, 1999; Basu and Altinay, 2002; Altinay and Altinay, 2006).

Literature review
Religion and entrepreneurial behaviour
The previous studies which investigated the relationship between the religion and the
entrepreneurial behaviour of the firm (see Basu and Altinay, 2002; Metcalf et al., 1996;
Rafiq, 1992; Smallbone et al., 1999) treated Muslims as a homogeneous group and did
not differentiate between Muslims who practise their religion and those who do not.
We therefore divided our sample between practising and non-practising Muslims and
tried to find out if there are any differences between these two groups in terms of their
borrowing, recruitment, market segmentation and advice-seeking practices.
Religion and co-ethnic capital. Ethnic minority entrepreneurship literature suggests
that religion can be a barrier in front of business growth. Metcalf et al. (1996) found that
 Pakistanis are less successful than Indians in self-employment because of cultural Entrepreneurial
factors, for example the influence of religion which prohibits the payment of interest on behaviour of the
(bank) loans. Similarly, Smallbone et al. (1999) argue that Pakistanis who wish to live
according to Islamic values are less willing to integrate with western culture and firm
consequently have not performed as well as non-Muslim businesses. This is supported
by other studies like that of Rafiqs (1992) which emphasises that Asian Muslim
businesses have not performed as well as non-Muslim businesses. The religion of the 113
owner/manager constitutes a barrier to capital access from banks and these Muslim
managers rely on the capital from co-ethnics for their business start-ups and
entrepreneurial activities. Contrary to these arguments, Basu and Altinay (2002) found
that Muslim entrepreneurs, including Turkish entrepreneurs, are pragmatic
businessmen who realise that they have to rely on bank borrowing if they wish to
start a business and if alternative modes of finance are unavailable. In our study, we
divided our sample into those Turkish entrepreneurs who practise their religion and
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those who do not and we expect to find that:

H1. Turkish owners/managers who practise their religion are more dependent on
their co-ethnics for financial loans.
Religion and co-ethnic labour. Findings of studies in large organisations indicated that
the hiring managers demographic characteristics influence their selection preferences
(Heilman, 1997; Manshor et al., 2003). Manshor et al.s (2003) study, in particular, found
that the influence of demographic characteristics on the decision of a manager as to
whether or not to hire a candidate is significant, and that religion is a major factor. This
is consistent with the studies of Abdullah (1992) and Zahari (1983), whose study of
Muslim Malay managers showed that these managers decision-making practices are
influenced by their religious backgrounds and racial preferences. Muslim Malay
managers showed a strong preference for selecting candidates from their own religion
and race, even though the candidates were less qualified. In the case of Turkish
owners/managers the reliance on family and co-ethnic labour may reflect this
immigrant groups attempt to strengthen Muslim brotherhood within their own
community. A high reliance on co-ethnic resources may also imply that Turkish
entrepreneurs belonging to that ethnic group have a strong cultural identity that they
wish to preserve. Based on these arguments, we can advance our hypothesis:
H2. Turkish entrepreneurs who practise their religion rely more on co-ethnic
labour.
Religion and co-ethnic customers. Previous studies showed that there is an ethnic as
well as religious loyalty between ethnic enterprises and their clients (Levent et al.,
2003). Religion, in particular, can be a source for trust and confidence between
customers and the owner and it can create a more than average loyalty and
relationships between the ethnic firm and its clients. This intra-cluster ethnic loyalty
offers potential competitive advantage for ethnic firms. However, this comparative
advantage may also create some barriers for break out strategies in terms of new
opportunities to expand the business and to open to new and non-traditional markets
(Levent et al., 2003). Basu and Altinay (2002) state that culture, as manifested by
religion, does not exert an important influence on entrepreneurial behaviour of Muslim
business owners. Muslim-owned businesses are willing to break out of their religious
 JSBED territories and make concessions like serving alcohol if demanded by mainstream
15,1 markets. In our study, we expect to find differences between those who practise their
religion and those who do not. We therefore advanced our hypothesis as:
H3. Turkish entrepreneurs who practise their religion target co-ethnic customers.
Religion and co-ethnic advice. Ties between people with the same religion are most
114 likely to be realised through financial loans and giving trusted advice (Feld, 1984;
McPherson et al., 2001). Feld (1984) states that people socialise with associates and ask
advice from associates who are of the same religion. Confirming this, in their study of
small Asian-owned retail businesses in the UK, Chaudhry and Crick (2003) found that
many requirements in respect of information gathering were satisfied by contacting
social/informal networks. There was little, if any contact with formal support
bodies such as trade associations, Chambers of Commerce and other business links.
Perhaps the major finding was that advice was gained, in many cases, through
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organisations with an affinity to the operations of firms who had an owner/manager

from the Asian community with similar religious background. We therefore proposed
that:
H4. Turkish entrepreneurs who practise their religion ask for advice from their
co-ethnics.

Education and entrepreneurial behaviour

In this study, educational attainment is measured by bachelor degree and above.
Highly educated entrepreneurs are those who possess a bachelor degree or above.
Less educated entrepreneurs are those who do not possess a bachelor degree.
Education and co-ethnic capital. Entrepreneurship literature suggests that
entrepreneurs need to be educated in order to develop their entrepreneurial abilities
and contribute to the survival of their businesses (Basu, 1998; Basu and Goswami,
1999; Casson, 1991; Jones et al., 1992). In their study of South Asian entrepreneurship in
the UK, Basu and Goswami (1999) found that educational qualifications may
contribute to growth by improving the entrepreneurs communication skills with
different parties including banks, which may in turn help to lift external financial
resource constraints and lower barriers to business development. It is also possible that
owners who have not had a higher education may be intimidated or uncomfortable
with the loan application process (Coleman, 2005; Rogers et al., 2001; Young, 2002).
Driori and Lerner (2002) state that Arab entrepreneurs who work in Israel cannot
utilise the subsidies and assistance made available by the government because of their
limited education and training, thus preventing the development of the reservoir of
managerial and technological manpower essential to the Arab industry. Confirming
this, in his study of the relationship between small firm owner characteristics and their
perceptions of capital access barriers, Rasheed (2004) found that ethnic minority
business owners who have less education will have relatively lower market penetration
as perceptions of capital access barriers increase. Based on these arguments, we can
advance our hypothesis:
H5. Turkish entrepreneurs with higher levels of education rely less on co-ethnic
capital but more on capital from banks and other financial institutions.
 Education and co-ethnic labour. Basu and Altinay (2002) state that Turkish Entrepreneurial
entrepreneurs have broken out of the ethnic enclave and moved away from traditional behaviour of the
Turkish management culture characterised by co-ethnic and family participation and
centralised control of the businesses by family members. Breaking out of the ethnic firm
enclave can help ethnic minority entrepreneurs both to integrate with the wider
community and also to exploit the skills and mindsets of those outsiders. People of
different nationalities possess different skills including communication, negotiation, 115
and critical thinking skills and also have an accumulated wealth of experience.
Recruiting a nationally diverse workforce means expanding the breadth of
perspectives and ideas available to the organisation in making decisions (Cox, 1991)
and increasing the probability of acquiring higher-skilled employees (Gudmundson
and Hartenian, 2000). Given that education can also contribute towards developing the
entrepreneurs analytical and managerial abilities to screen applicants and recruit
employees for specialist positions within the business (Ibrahim and Goodwin, 1986), we
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propose that:
H6. Turkish entrepreneurs who attain a higher level of education rely less on a
co-ethnic labour force.
Education and co-ethnic customers. In terms of expanding a business, recent research
found a positive effect of ones educational level on the likelihood to perceive
entrepreneurial opportunities (Clercq and Arenius, 2006). Walker (1988) noticed that
the businesses owned by Greeks in his inner city Sydney study sample underwent
expansion when a university-educated son joined the firms ranks. Peters (2002) states
that the Greek Kailis brothers attribute their success as exporters of lobster and other
seafood to their secondary/tertiary qualifications which, they maintain, better
equipped them to remain flexible and open to market forces and opportunities.
Levent et al. (2003) identified lack of education as an ethnic based obstacle to the
entrepreneurship and argued that those entrepreneurs who are keen on breaking out
into the mainstream market will need to attain higher levels of education.
Bachkaniwala et al. (2001) state that higher levels of education attainment may
lower the break out barriers. A higher level of education develops both the analytical
ability and the computational skill of the entrepreneur as well as communication skills.
Those who attain a higher level of education are better equipped to communicate with
customers, gather market intelligence and develop appropriate strategies which then
lead to a higher growth in their businesses (Casson, 1991). Based on these arguments,
we can advance our hypothesis:
H7. Turkish entrepreneurs who attained a higher level of education rely less on
co-ethnic customers and more on mainstream customers.
Education and co-ethnic advice. In the context of business planning and development,
business owners have regular meetings with the banks and venture capitalists and
received feedback on their applications for financial loans (Richbell et al., 2005).
Education can always contribute to the development of good relationship with a credit
officer (banker), as can good interpersonal skills (Basu and Goswami, 1999; Ibrahim
and Goodwin, 1986; Storey et al., 1989). It is also possible that firm owners with higher
levels of education have a higher level of confidence in themselves to seek advice from
 JSBED banks, financial institutions and mainstream business advisers (Coleman, 2005; Rogers
15,1 et al., 2001; Young, 2002). Based on these arguments, we can advance our hypothesis:
H8. Turkish entrepreneurs who attain a higher level of education seek less advice
from co-ethnic sources.

Language and entrepreneurial behaviour

116 The ability of the entrepreneurs to use the English language is measured by their
ability to speak, write and read the language fluently.
Language and co-ethnic capital. Prior research has suggested that individuals might
be more inclined to engage in entrepreneurship-related activities if they believe
themselves to possess the necessary skills to bring these activities to a successful end
(Arenius and Minniti, 2005; Clercq and Arenius, 2006; Davidsson and Honig, 2003). In
their studies of attitudes and behaviours of Turkish female entrepreneurs in
Amsterdam, Levent et al. (2003) identified poor language skills as an obstacle to
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entrepreneurship. According to these authors, the ability to communicate with others

in the host country language is an important factor, which in turn has a significant
impact on social and economic integration and productivity. Indeed, firm owners who
possess strong language skills, will have a higher level of confidence in themselves to
seek capital from banks and other financial institutions and rely less on co-ethnic
capital. Based on these arguments, we can advance our hypothesis:
H9. Turkish entrepreneurs who possess good language skills use mainstream
sources (banks and other financial institutions) for capital.
Language and co-ethnic labour. In the past, previous studies argued that immigrant
businesses recruit co-ethnic labour because co-ethnic labour enables ethnic businesses
to cut their employment costs and maintain a lower wage payroll, on average
(Waldinger et al., 1990). However, there appears to be no study investigating the
influence of a common language on the recruitment practices of ethnic minority
entrepreneurs. Given the tendency to seek out associates with certain types of common
characteristics such as religion, gender and age for capital and advice (McPherson et al.,
2001), we would expect that those Turkish entrepreneurs who do not possess good
language skills rely mainly on co-ethnic labour force in order to be able to communicate
more effectively and manage the firm. Based on these arguments, we can advance our
hypothesis:
H10. Turkish entrepreneurs who do not have strong language skills rely on
co-ethnic labour.
Language and co-ethnic customers. Altinay and Altinay (2006) also found a positive
relationship between English fluency and the growth of small Turkish speaking
businesses in the UK. Their study showed that the survival and growth of Turkish
businesses operating in the catering sector was highly dependent on meeting the
expectations of existing and future customers. The research indicated that
communication with different stakeholder groups, particularly with customers, is
key to this endeavour. Ethnic minority entrepreneurs therefore need to possess good
English language communication skills in order to be able to break into the
mainstream market successfully. Indeed, total fluency in English and familiarity with
British culture undoubtedly provide the ethnic minority entrepreneurs with
 opportunities in the wider mainstream market (McEvoy and Hafeez, 2006). Based on Entrepreneurial
these arguments, we can advance our hypothesis:
behaviour of the
H11. Turkish entrepreneurs who possess good language skills break into the firm
mainstream market rather than relying solely on co-ethnic customers.
Language and co-ethnic advice. The previous research indicates that ethnic minority
businesses have a low propensity to use mainstream business support agencies 117
(Marlow, 1992; Ram and Sparrow, 1993), often relying instead on self-help and
co-ethnic sources of advice. One of the principle obstacles is language and the lack of
effective communication with the support agencies. Smallbone et al. (2001) state that
mainstream business support agencies do not communicate in the language of the
ethnic minority group and this can be a barrier for the dissemination of the information
on business support issues if these entrepreneurs do not feel comfortable with the
language of the host country. Given that firm owners with good language
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communication skills have a higher level of confidence in themselves to seek advice

from banks, financial institutions and mainstream business advisers (Coleman, 2005;
Rogers et al., 2001; Young, 2002), we advanced our hypothesis as:
H12. Turkish entrepreneurs who do not possess good language skills tend to rely
on co-ethnic sources for advice.

Research design
This study investigated the entrepreneurial behaviour of Turkish speaking small
businesses in London by conducting 227 face-to-face structured interviews with
entrepreneurs who were working in service, retailing, catering, and import/export
sectors[1]. All the interviews were conducted in English and lasted about one hour, on
the basis of a detailed semi-structured interview schedule. Informants were asked
closed as well as open-ended questions on a wide range of issues relating to their
personal characteristics, family backgrounds, business form and structure, business
entry characteristics, business characteristics including operations and finance (see
Appendix, Figure A1 for a sample of questions).
The sample is drawn from a database of 1,200 Turkish-speaking entrepreneurs who
own micro (minimum two, maximum nine employees) and small businesses (minimum
ten, maximum 49 employees) in different boroughs of London. The database was
constructed by the researchers through ethnic minority business directories and
unpublished lists of names obtained from Turkish high commissions. The researchers
also managed to identify other businessmen via corporate databases published by
FAME, Turkish-British Chamber of Commerce, Olay Gazetesi and Turkish Business
Associations in London. The Turkish Business Guide (2000, 2001, 2002, 2003) was also
used to locate boroughs with a high concentration of Turkish-speaking businesses for
the study. The sample was randomly selected and an effort was made to include
entrepreneurs operating not only in traditional sectors like catering and retailing, but
also wholesaling and manufacturing.
This research marries the strengths of qualitative and quantitative research. In
particular, open-ended questions were used to collect qualitative data on a wide range
of issues pertinent to the entrepreneurs personal characteristics, family backgrounds,
business form and structure, business entry characteristics and ways of running
businesses (such as operations and finance). Closed questions were used to collect
 JSBED quantitative data to measure differences in the entrepreneurs socio-cultural
15,1 backgrounds. The research results have been examined by using Chi-square
analysis in order to see the relationship between the entrepreneurs cultural attributes
and the entrepreneurial behaviour of the firm.
Qualitative data obtained from the open-ended questions were analysed by using
the coding analysis which allows for constant examination of conceptual interactions
118 and relationships, and the conditions under which they occur (Strauss and Corbin,
1990). A coding scheme was derived from the literature which reflected the research
framework, highlighting key elements that emerged. This coding scheme was a
two-by-two matrix encompassing the entrepreneurial behaviour of the firm as one axis
and the other components of the theoretical framework as the other axis (i.e. language,
education, religion). Much of the data analysis consisted of breaking down the answers
to open-ended questions manually into manageable blocks in order to classify them
under each code/grouping. This approach helped to cross-classify logically the
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variables and illustrate interrelationships.

Analysis and discussion

Religion and entrepreneurial behaviour (H1, H2, H3 and H4)
Previous literature suggests that religion can be a barrier in front of business growth, if
Muslim ethnic minority entrepreneurs follow their religion rigidly at the expense of
adapting to the realms of the modern economic system (Metcalf et al., 1996; Rafiq,
1992). Recognising this, Basu and Altinay (2002) argued that pragmatic Muslim
businessmen know that they have to rely on bank borrowing if they wish to start a
business and if alternative modes of finance are unavailable. The findings of this study
confirmed Basu and Altinays (2002) research findings and demonstrated that despite
the similarity of Pakistanis and Turks in terms of religious background, Islam does not
exert an important influence on the entrepreneurial behaviour of Turkish nationals
regarding the borrowings for start-up. The results of the Chi-square analysis are
presented in Table I.
More than half of the Turkish nationals regardless of whether they practise their
religion or not, use banks to borrow money at start up and interestingly more than half
of those who practise their religion also use banks to borrow money. In the case of
Turkish ethnic minority entrepreneurship, therefore, these findings indicated that
entrepreneurs managed to break out of the ethnic enclave and move away from
traditional Turkish culture with Islamic dominance regarding the borrowing of credit.
Looking at these findings, one could say that such a socio-economic move could
facilitate the integration of Turkish entrepreneurs into the social and economic realms
of the UK and thus gain them a competitive edge both in the country and in the
international marketplace. However, this liberal attitude is not reflected in their
recruitment, market segmentation and advice-seeking practises. Findings of the study
showed that Turkish entrepreneurs possess a conservative attitude towards the
management their networks and felt more comfortable within their ethnic enclave.
Although there is no information suggesting that their employees, customers and
advisers are Muslims, it became apparent that those entrepreneurs who practise their
religion prefer to recruit their co-ethnics, target co-ethnic customers and seek for advice
from co-ethnics. Those entrepreneurs who practise their religion employ more than half
of their employees from the co-ethnic labour pool, whereas those who do not practise
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Borrowing Recruitment Market segmentation Advice

Reliance on bank finance at Reliance on co-ethnic labour, if Reliance on co-ethnic customers, Reliance on co-ethnic advice for
start-up, if more than 50 per more than 50 per cent 1 if more than 50 per cent 1 expansion, if more than 50 per
cent 1, else 0 else 0 else 0 cent 1 else 0
Practise
religion 1, Number of Number of Number of Number of
else 0 n % valid cases n % valid cases n % valid cases n % valid cases

Do not practise
religion 97 53.3 182 62 34.3 181 38 20.7 184 21 11.6 181
Practise religion 23 53.5 43 21 48.8 43 20 46.5 43 11 25.6 43
Total 120 53.3 83 37.1 58 25.6 32 14.3
Pearson x 2 0.001 3.16 12.253 5.54
p 0.982 0.075 * 0.000 * * * 0.019 * *
df 1 1 1 1
Number of valid
cases 225 224 227 224
Notes: * Significant at 10 per cent level; * * significant at 5 per cent level; * * * significant at 1 per cent level
Entrepreneurial

entrepreneurial
behaviour
religion and
The relationship between
firm
behaviour of the

119

Table I.
 JSBED their religion employ only one third. This is significant according to the Pearson
15,1 Chi-square analysis (see Table I). These findings to some extent confirm the arguments
of Manshor et al. (2003) that hiring managers religious characteristics influence their
selection preferences. Religious association appears to be stronger in the case of small
ethnic minority firms because as stated by one of the informants:
Small businesses are trying to survive against the competition and all other problems. We
120 have to have integrity among ourselves. If people from the same religion and the background
do not help and support each other, who else would do so?
It was also observed during the data collection stage that the help and support
mentioned above is mutual; cultural integrity and personal relationships between the
entrepreneurs and employees allow entrepreneurs to employ lower paid co-ethnics
with limited training and other incentives.
In terms of market segmentation, almost half of the customers of those
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entrepreneurs who practise their religion have the same ethnic origin as the
entrepreneur. For those entrepreneurs who do not practise their religion, the figure is
only 20 per cent, which again is statistically significant (see Table I). These findings
raise questions about the findings of Basu and Altinay (2002) concerning the neutral
influence of the religion on the entrepreneurial behaviours of Muslim business
owners. The findings of this study showed that it is important to make a distinction
between those Muslims who practise their religion and those who do not. Those
Turkish entrepreneurs who do not practise their religion are more willing to break
out of their religious territories and make concessions like serving alcohol and
selling bacon and pork dishes in order to be able to respond to the competitive
demands of the market.
There is also a significant difference between those Turkish entrepreneurs who
practise their religion and who do not in terms of their sources of advice. The findings
of the study showed that those who practise their religion rely more on the advice from
co-ethnics whereas those who do not practise the religion rely less on co-ethnics for
advice (see Table I). In line with the arguments of Feld (1984) and Chaudhry and Crick
(2003), the preference of some Turkish entrepreneurs for using can be closely
associated with trust. The common religion appears to be a bridge between the
entrepreneurs and the co-ethnics in building and maintaining the trust between these
parties.

Education and entrepreneurial behaviour (H5, H6, H7 and H8)

Contrary to the previous arguments in the literature, the findings of this study
showed that there is no relationship between the education level of the entrepreneurs
and their borrowing, recruitment and market segmentation practises (see Table II).
This is surprising given that educational background makes a very important
contribution to the development of an entrepreneurs analytical and managerial
abilities (Clercq and Arenius, 2006; Basu and Goswami, 1999; Casson, 1991; Ibrahim
and Goodwin, 1986).
There is relationship between the level of education (bachelors degree) and the
sources of advice (see Table II). However, the relationship demonstrated by the
findings of our study contradicts those of other studies (Coleman, 2005; Rogers et al.,
2001; Young, 2002) and with our own hypothesis (H8). Turkish entrepreneurs with
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Borrowing Recruitment Market segmentation Advice

Reliance on bank finance at Reliance on co-ethnic labour, Reliance on co-ethnic Reliance on co-ethnic advice
Bachelor degree or start-up, if more than 50 per if more than 50 per cent 1, customers, if more than 50 for expansion, if more than 50
above 1, else 0 cent 1, else 0 else 0 per cent 1, else 0 per cent 1, else 0
Number of Number of Number of Number of
n % valid cases n % valid cases n % valid cases n % valid cases

Less educated 68 37 184 65 35.3 184 44 23.5 187 30 16.1 186

Highly educated 14 35 40 18 45.0 40 14 35.0 40 2 5.3 38
Total 82 36.6 83 37.1 58 25.6 32 14.3
Pearson x 2 0.054 1.31 2.27 3.04
p 0.816 0.251 0.131 0.081 *
df 1 1 1 1
Number of valid cases 224 224 227 224
Note: * Significant at 10 per cent level
Entrepreneurial

entrepreneurial
behaviour
education and
The relationship between
firm
behaviour of the

121

Table II.
 JSBED higher levels of education rely more on co-ethnic advice from family and friends and
15,1 those who do not possess higher qualifications rely on more formal sources for advice.
This anomaly can be explained by the fact that those entrepreneurs who possess
higher qualifications either from their country of origin or from the UK do not have
enough business experience through a family or non-family business or as a
professional and they tend to rely on a trustworthy source to complement their
122 strengths. On the other hand, those who do not possess higher qualifications rely more
on formal sources for advice because they believe those advisers that they deem to be
professional sources of management expertise can complement their strength of
having experience in running businesses.

Language and entrepreneurial behaviour (H9, H10, H11, H12)

Contrary to the previous arguments in the literature, the findings of this study showed
that there is no relationship between the language skills of the entrepreneurs and their
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borrowing, recruitment and market segmentation practises (see Table III). This is
again surprising given that the ability to use language effectively helps entrepreneurs
to build confidence in their relationships with the banks, mainstream customers and
workforce (Levent et al., 2003; McEvoy and Hafeez, 2006).
What is interesting regarding the findings of the study is that those Turkish
entrepreneurs who are less fluent with the language rely more on co-ethnic sources
for advice and those are more fluent use formal sources for advice. Good language
communication skills give them a higher level of confidence in themselves to seek
advice from formal sources and this finding is in line with the arguments of Coleman
(2005), Rogers et al. (2001) and Young (2002). What is also distinctive with Turkish
entrepreneurs is that their inability to use the language effectively affects their level
of trust in formal sources. As one of the entrepreneurs stated:
I cannot even communicate with them effectively. How an earth I will find their advice
trustworthy or reliable.
These entrepreneurs do not have the confidence to use formal sources for advice
because of their English level.

Conclusions and implications

This paper aimed to evaluate the relationship between Turkish entrepreneurs
cultural attributes and the entrepreneurial behaviour of their firms. A number of
conclusions can be drawn from this study. First, the entrepreneurial behaviour of
ethnic minority firms has attracted the attention of many researchers in both the
small business management and entrepreneurship literatures. In spite of the
importance of entrepreneurial behaviour for business growth, previous literature
continues to be vague and incomplete. Previous studies into the entrepreneurial
behaviour of the ethnic minority firms developed a comprehensive understanding
concerning external drivers such as political, economic and socio-cultural factors
influencing a firms orientation to break out or operate within ethnic enclave
(Barrett et al., 2002; Kloosterman et al., 1999). These studies, however. primarily had
an external focus, avoiding the serious linkage between the initiator and
manipulator of the firms culture, the owner, and the entrepreneurial behaviour of
the firm. The findings of this study revealed that the cultural backgrounds of the
 Downloaded by Universitas Brawijaya At 23:13 19 May 2017 (PT)

Borrowing Recruitment Market segmentation Advice

Reliance on bank finance at Reliance on co-ethnic labour, if Reliance on co-ethnic Reliance on co-ethnic advice for
start-up, if more than 50 per more than 50 per cent 1, customers, if more than 50 per expansion, if more than 50 per
cent 1, else 0 else 0 cent 1, else 0 cent 1, else 0
English fluent 1, Number of Number of Number of Number of
else 0 n % valid cases n % valid cases n % valid cases n % valid cases

Not fluent in
English 45 36.0 125 45 36.0 125 32 25.2 127 23 18.3 126
Fluent in English 37 37.4 99 38 38.4 99 26 26.0 100 9 9.2 98
Total 82 36.6 83 37.1 58 25.6 32 14.3
Pearson x 2 0.045 0.135 0.019 3.704
p 0.832 0.714 0.890 0.054 *
df 1 1 1 1
Number of valid
cases 224 224 227 224
Note: * Significant at 5 per cent level
Entrepreneurial

entrepreneurial
behaviour
English fluency and
The relationship between
firm
behaviour of the

Table III.
123
 JSBED ethnic minority firms owners play an equally important role in determining the
15,1 entrepreneurial behaviour of the firm.
An internal orientation may offer a more protected market for ethnic minority firms,
but might not lead to break out and consequently to market expansion. An external
orientation, however, requires more skills and stronger cultural backgrounds both for
the entrepreneurs and for the business advisers and the policy makers. Language skills
124 appear to be essential for those who need to seek advice from external professional
sources. Given that the future survival of the ethnic minority firms depends on their
ability to benefit from the advice provided by business support networks and
government policy makers (Coleman, 2005; Smallbone et al., 2001), it appears essential
for ethnic minority business owners to strengthen their medium of communication
with these key stakeholder groups.
Alternatively, business support advisers and other professional bodies will need
to adapt their communication strategies with these ethnic minority groups in order
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to be able to pass the message across to those who are not comfortable with the
language. In addition, having identified that those Turkish entrepreneurs with
higher levels of education rely more on co-ethnic advice, it appears that there is a
need to sell the benefits of advice to this group from those professionals outside
their community.
The findings of this study also revealed that religious practice can lead to a more
conservative management approach leaving very little room for entrepreneurial
behaviour or break out. Religion is a socio-cultural variable that needs to be properly
managed by the entrepreneurs. Religion and the spiritual integrity are between God
and the individual and should not act as an enabler for inward looking management
practices. Muslim entrepreneurs need to separate their religious beliefs from their
management practices or at least balance these two in order to be able to set an
external and long-term orientation for their firms.
At the moment, very little is known about Turkish minority businesses, how they
are evolving, the depth of ethnic and non ethnic-based networks that they create or
are drawn into, and very importantly, how they are managing to survive.
Accordingly, this paper initiates some points of discussion in seeking to provide a
systematic body of knowledge relating to the Turkish entrepreneurial processes in
the UK.
The findings of this study indicated that Turkish entrepreneurs exploit their
cultural backgrounds in order to gain competitive edge and contribute to the UK
economy. Those who have strong cultural backgrounds (i.e. language) move away
from their culturally protected environments and seek opportunities in the wider
liberal world. On the other hand, religion appears to lead to more conservative and
inward looking management practices. Turkish entrepreneurs need to adapt the
way religion is perceived in order to respond to changing global economic
conditions. Given that Turkey has started its accession talks with the European
Union (EU), it is important that the influence of Turkish entrepreneurs cultural
backgrounds on their management practices is more aligned with those in the EU.
Such a socio-cultural move could help them to further exploit their multifarious
cultural heritages and contribute to the economic and social development of a
broader-based community.
 Note Entrepreneurial
1. Notes: service sector includes: dry cleaners, auto repairs, internet cafes, mini-cab operators, behaviour of the
money exchange, hair salons, and property management. Retail includes: car dealers, fashion
shops, supermarkets, travel agents, off-licences, second hand exchange goods, jewellery firm
shops, catering equipment dealers, cassette shops, butchers, frozen foods, drink and spirit
dealers, electrical goods and motor parts. Import/Export includes: garment manufacturers,
upholstery, food manufacturers and curtain manufacturer, food and drink wholesalers. 125
Catering includes: fishnchips, kebab and burgers, pizza, sandwich and fried chicken,
Mediterranean cuisine, Cypriot cuisine, Turkish cuisine, steak houses, and fish cuisine.
(Source: Personal Survey.)

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15,1

128
JSBED
Appendix
 Entrepreneurial
behaviour of the
firm

129
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Figure A1.
Interview schedule

About the author

Levent Altinay is a Reader in Strategic Management at Oxford Brookes University Business
School. His research interests include internationalisation of service organisations and
entrepreneurship. Levent Altinay can be contacted at: laltinay@brookes.ac.uk

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

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