Social and human capital in immigrant adaptation: the case of Canadian business immigrants.

Purpose: With the resurgence of immigration to North America in the past three decades, research on immigrant adaptation and the attendant issues of assimilation has burgeoned. A prevailing assumption of much of this research is that social capital is a vital resource enabling immigrants to find their economic and social niches in the host society. In a word, social capital is a key factor in the immigrant adaptation process. This assumption has been especially prominent in research focusing on one specific subset of immigrants: entrepreneurs. Social capital in the form of ethnic networks and family ties is assumed to function critically in the establishment and operation of immigrant-owned businesses. This paper argues that although the formation and expenditure of social capital may typify the experiences of many or even most immigrant entrepreneurs, some enter the host society with sufficient human and/or financial capital that enables them to forego the utilization of social capital in the adaptation process.

Methods: To demonstrate, I draw upon in-depth interviews conducted with 70 immigrant entrepreneurs in the province of Ontario, Canada between 1993 and 1995. All interviewees entered Canada under the auspices of the Canadian Business Immigration Program, a federal program designed to attract immigrants with demonstrable business and managerial skills that presumably will lead to the establishment of a firm and thus to the subsequent creation of jobs and economic activity. A formal requirement of their entrance, then, is the possession of proven business skills, a critical form of human capital that facilitates successful economic adaptation in the host society.

Forms of social capital are described and their applicability to the adaptation experiences of the interviewees is analyzed. What is found among these business immigrants is a minimal reliance on social capital in establishing and operating their firms. In securing investment capital, finding a work force, and acquiring information, ethnic and family ties, the most common forms of social capital for immigrants ...