Social Capital, Geography, and Survival : Gujarati Immigrant Entrepreneurs in the U.S. Lodging Industry

This study assesses the importance of group membershipforimmigrant entrepreneurs in the lodging industry in Texas. It arguesthat such affiliation, and proximity, offers critical resources for strugglingmembers, thus improving chances of firmsurvival. Severalhypotheses—assuming that survival benefits enjoyed by group members are theresult of social capital—were tested. The data used includes all lodgingestablishments functioning in Texas between 1990 and1999, operated by Gujaratiimmigrant entrepreneurs. The lodging industry was chosen for this study because branded chainaffiliation offers an observable indicator and can contribute to socialcapital. A number of hypotheses were tested using event history analysis. Forevery history analyzed, the variables included motel survival, Gujaratiownership, and measures of Gujarati and non-Gujarati ownership of other hotelsin the proximity of an observed hotel. The findings offer evidence for benefits within groups of immigrantentrepreneurs in the United States. They also suggest the importance of groupmembership and geographic proximity in the immigrant entrepreneur's success,which makes a contribution to the literature of social networks.(CBS)