Abstract
Abstract
The business environment of a host country reflects the complex interplay of multiple social, cultural and religious factors with the lives and work of ethnic minority women. The distinct social context of each ethnic or immigrant group determines its position in the host country. Every ethnic minority group has its unique characteristics, social and cultural conventions and resources that facilitate or constrain their entrepreneurial endeavours. As social actors, ethnic minority entrepreneurs draw support and resources from the ‘network of social relations’; hence it is the ‘social network’ that facilitates or constraints the social actors’. It is the formation and utilization of a network of relationships that shapes the entrepreneurial outcomes which are not independent of external factors. Exploration of the outcomes of the interplay of gender, ethnicity and religion shaping the personal network of Pakistani female entrepreneurs forms the focus of this article in which ethnographic inquiry is used to explore the ‘meaning and perception’ attached to social relations by Pakistani female entrepreneurs in a special ethnic and immigrant context. Gender as a ‘social practice’ influenced by religious and cultural values leads Pakistani females to maintain ‘women only networks’ and rely on kinship networks. Transition from ethnic to non-ethnic and expansion of network is the outcome of mistrust on ethnic community members.
Introduction
Migrants represent a significant and growing minority in the United Kingdom. In order to facilitate their lives and to earn a livelihood, many immigrants start their businesses in the host country. Their efforts contribute to the national income and job creation in the host country. The importance of immigrants and their entrepreneurial ventures to the host country’s economy has drawn the attention of researchers and policy makers for some time now in the United Kingdom. The Global Entrepreneurship Monitor Report, 2004 states that ethnic immigrant women are to a large extent ‘more entrepreneurial than their white female counterparts’ (Harding, 2004). The importance of their contribution to the host country (the United Kingdom) have led researchers to consider different issues, for instance, their backgrounds, motivation, influences, decision to become self-employed and their entrepreneurial experiences (Baycan-Levent, Masurel & Nijkamp, 2006; Levie, 2007) from a variety of perspectives.
The Global Entrepreneurship Monitor Report, 2006 reports high entrepreneurship rates in the United Kingdom for Indian, Pakistani and Black women entrepreneurs which are well above those of their white female entrepreneurs (Bosma & Harding, 2006). However, research also found considerable entrepreneurial differences between the individual ethnic minority groups. Statistical averages, calculated by geographical categorisation of ethnic groups, hide differences between the ethnic communities (Modood, 1992; Salway, 2007). Basu (1998) argues that variation in the entrepreneurial activities of ethnic minority groups is caused by their distinct sociocultural factors such as family traditions, ethnicity, religion, education and network of social relationships which affect ethnic entrepreneurs’ participation in the businesses. These clear social differences between women belonging to different ethnic minority groups strongly suggests that South Asian women should not be treated as a homogenous group for policy development and research. There is a need to consider the intergroup dynamics to explore the lived experiences of immigrant and ethnic female entrepreneurs and what they bring to bear on their entrepreneurial ventures.
Gender Construct in Entrepreneurship Studies
‘Gender’ is a social product which changes through the use made of it by society. When taken as a relational concept, it enables exploration of how women are attributed female characteristics and men masculine ones, and how ‘doing’ gender is a social practice which positions persons in contexts of asymmetrical power relations (Swidler, 2001). Gender can be described as something that people ‘do’—a social practice situated in interactive contexts—and not as something that people ‘have’, whether by sociobiological attribution or by sociocultural ascription. Therefore, the ‘femaleness’ of the ‘female entrepreneur’ signifies a complete role that has strong impact on the way females do their businesses. Gilligan (1982) suggests that women perceive their business as a cooperative network of relationships and as integrated into their lives. This discursive strategy differs from ‘the male norm’ typical in the traditional business literature by neutralizing the gendering of entrepreneurship studies (Ahl, 2002).
The notion of ‘males: the bread earners’ and ‘females: the care takers’ takes the gender as a ‘uni-dimensional construct’. The only dimension that shapes such a notion is the ‘social role’ assigned to the both the sexes. Later studies presented gender as a multidimensional construct influencing and being influenced by wider social context. In accordance with the multidimensionality of gender, it was also recognised that ‘female entrepreneurship’ is an interactive process; hence studying any aspect (psychological, social backgrounds, barriers, performance, growth, management and so on) in isolation would undermine the importance of subject.
Female Entrepreneurs’ Embeddedness in Social Context
Wider societal level explanations focus on the contextual factors that bear upon the emergence of female entrepreneurship. Female entrepreneurs are found in all societies but the variation in entrepreneurship rate in different societies can be attributed to the differences in social institutions, religion, literacy rates and composition and role of social networks. Embeddedness of entrepreneurial behaviour in a social context has an impact on entrepreneurial motivations (Palich & Bagby, 1995; Sarasvathy, Simon, & Lave, 1998), preference for autonomy and role of personal values (Cooper, Woo & Carolyn, 1988) and social networks (Burt, 2001). The social embeddedness framework asserts that ‘study of economic activity must include the analysis of social context within which economic actions occur’ (Granovetter, 1985; Uzzi, 1997, 1999). The implementation of this perspective has led researchers to focus on the role of social relations in shaping entrepreneurial activities and their outcomes.
The social context is made up of individual and institutional actors, whose interaction form an ongoing network of relationships. Kristiansen (2004) sees network as ‘a series of formal and informal ties between the central actor and other actors in a circle of acquaintances’. She argues that networks themselves may or may not be important but their importance lies in their function as a ‘channel through which entrepreneurs get necessary resources for business start-up, growth and success’. Individuals in various contexts form and maintain their network of relationships in their unique ways. These personal networks do not only facilitate the social and economic processes but they become the source of rich contextual information and social phenomena (Fischer, 1982, p. 4). Individuals bring their personal experiences, beliefs and resources to the network of relationship. However, how people network and make choices in forming relationships with others is based on multiple factors the most important of which are gender and ethnicity, and in few contexts, religion as well. From the above discussion, it can be inferred that there is no universal social networking pattern or process followed by entrepreneurs across the globe. Different cultures and ethnicities lead to different networking activities and variations in the formation, structure, utilisation and process can be duly attributed to differences in cultures.
Personal Network of Ethnic Minority Female Entrepreneurs
Entrepreneurs draw important resources for their entrepreneurial venture from the network of relationships. In the case of ethnic and immigrant businesses, the role of social networks becomes even more crucial. In the host country, immigrants rely heavily on co-ethnic support (financial and non-financial), co-ethnic labour, clients and suppliers (Verheul & Thurik, 2001). According to Iyer and Shapiro (1999), ethnic minority entrepreneurs join the ranks of the self-employed because of the influence of ethnic ties. While explaining the reasons for high self-employment rates among South Asian entrepreneurs, Oc and Tiesdell (1999) stated that the ‘substitution of bank loans with access to a strong social network of friends and extended family’ was a dominant factor in giving a specific ethnic group ‘a comparative advantage over other ethnic minority groups’.
In this study, the network concepts used are derived from the concept of personal network in which the individual entrepreneurs are directly involved. In small business research, where the unit of analysis is quite often the firm or the organization, (inter)organizational networks tend to be the focal point of much research. But in entrepreneurship research, where the study focuses on individual entrepreneur, studying personal networks is more relevant. The personal network approach to entrepreneurship considers the entrepreneurs as embedded dependent actors (Aldrich & Zimmer, 1986). The individual entrepreneur is embedded in the network of social relations and uses the network for the extracting resources and emotional support (Granovetter, 1973). Generally, a set of people that are preferably contacted by an individual person to get informal information or advice is called a personal network.
The personal network is described as ‘a network consisting of a focal actor (Ego), a set of network members linked to Ego, and the ties between Ego and these network members (alters)’ (Bastani, 2007; Batjargal, 2007). Ego in the personal network is the focal person from whose viewpoint the whole network is studied. Jack and Anderson (2002) note that ‘ego network is based on the perspective of an individual. If someone is asked to list all the people with whom they have relationships, this list would constitute the individual’s ego network.’ Here, the emphasis is on the perspective of the individual under study. An individual’s perspective is an important consideration because the nature of social interaction depends mainly on the perspective of the people involved in the interactions.
Ethnic and immigrant females tend to rely mostly on their personal networks in families and close friends to extract most of their financial and emotional support (Aldrich & Zimmer, 1987). South Asian females tend to follow the social norms that do not necessarily allow them to move freely outside the boundaries of their home. Therefore, they start the business with the help of family and friends and later on with the expansion of business they expand their network to outsiders. Family support and ethnic networks in relation to financial assistance and/or business advice have repeatedly emerged as key factors for achieving empowerment (Anthias, 2007; Masurel et al., 2002).
Background and Context—Pakistani Female Entrepreneurs in London
Pakistanis started migrating to England, even before the creation of Pakistan, in search of jobs and better living standard. Initially, they were concentrated in the West Midlands and West Yorkshire. Their settlement patterns in England depended on the labour shortage in these areas (Shaw, 2000, p. 15) at that time. Compared to other parts of Britain, where the Mirpuri community from Pakistanis dominate, London has attracted various sub-ethnic communities from Pakistan including Punjabis, Kashmiris, Pushtuns, Sindhis and Balochis (Shaw, 2009). Pakistanis joining labour markets of London after the 1960s were mostly qualified teachers, doctors and engineers, thus suggesting a certain level of competency and capability appropriate for more demanding labour markets.
Anwar’s (1979) Myth of Return presented the expectation that Pakistanis in Britain are sojourners who do not intend to settle permanently in this country. However, when the British government threatened to restrict immigration in 1962, many decided to stay and were joined by their wives and children (Anwar, 1995). According to the 2001 census, there was a 63 per cent increase in the number of Pakistani migrants with a 65 per cent increase in the number of Pakistani women in London only (Piggott, 2005). Statistics clearly debunk the ‘myth of return’ ideology among Pakistanis. These settlers in London took up different jobs and many became self-employed. Today, the majority of Pakistani Londoners are self-employed with their family members helping them in their businesses.
Pakistani families bring their sociocultural values with them to the host society upon migration. However, in the host society context rules or conventions may not be easy to follow for a Pakistani Muslim immigrant. A day shift worker in the workplace may not get time to offer regular prayers in the prescribed timings. Such issues may discourage Pakistani Muslims to join the labour market and they, therefore, opt for self-employment where they have personal freedom and choice to exercise their religious practices. Religion has a deep impact on the overall life of followers and business is equally affected by the rules, codes and conventions derived from religious beliefs. However, rules affecting men and women are not the same. For women, there are special commandments for observing purdah (veil) and male–female seclusion (Roomi & Parrott, 2008).
Islamic rules govern all aspects of life including special commandments for Muslim females, as in observing purdah, no contacts with na-Mehrams 1
Males who are not related by blood or by law.
Pakistani females are part of the distinct cultural and religious group where the ‘femaleness’ is defined by the social and cultural values which set the boundaries for females. The traditional role of Pakistani females remains intact even after migration to a foreign country and they cling to the traditional roles without being impacted by the host society’s culture contrary to what ‘assimilation theorists’ like to believe. Pakistani society is based on strong cultural and religious values that do not encourage females to go out of home to earn income (Goheer, 2003). It does allow them to earn their own livelihood in case of contingencies by joining a restricted labour force, but it does not encourage and facilitate business as a career choice. Metcalf, Modood, Virdee (1996) state that self-employment rates for Pakistani female are found to be much lower than their male counterparts. This scenario has implications for self-employment and the entrepreneurial aspirations of Pakistani females. Because of socially constructed gender roles, females are either a part of family business having no or little decision-making powers (Dhaliwal, 2000; Wellman & Wellman, 1992) in keeping with a ‘men manage and women work’ culture (McPherson, 2008). Self-employment for them is, therefore, tantamount to an expression of independence and the ‘breaking of traditional boundaries’. These observations appear to reinforce the status quo of Pakistani female entrepreneurs and to some extent present a rather static view of their emergence as people and people in different environments. Therefore, empirical evidence is needed to see if change in this particular context due to migration influences their sociocultural values in terms of adopting the Western gender roles in the host society (the United Kingdom), and if such change has implications for taking up employment and self-employment in the new social and economic context.
Exploring the Field for Data Gathering
Primary data used for this article was collected over two years 2010–2011 and then collated, revalidated with both the sources and independently over a period of 18 months. This study was carried out in London, the home of one-fifth of all Pakistanis in England. Almost 70 per cent of Pakistanis in London live in Outer London, though the borough with the highest percentage of Pakistanis is in Inner London, in Newham, where over 8 per cent of the population are Pakistanis. They are one of the more economically active groups among minority communities in general in the United Kingdom with a self-employment rate that is 8 per cent higher than the average (Piggott, 2005).
Research on sensitive issues and particularly on special and vulnerable population can be very challenging. Sieber and Stanely (1988) state that ‘Socially sensitive research refers to studies in which there are potential social consequences or implications, either directly for the participants in the research or for the class of individuals represented by the research.’ Ethnic minorities in many cases are a socially vulnerable population because of long held, empirically proven cases of institutional racism, discrimination in the labour market and in social environments, education and housing. This often generates suspicion and disillusionment with surveys and interviews which purport to reflect their circumstances or problems without necessarily their resolution.
Accessing Pakistani female entrepreneurs in London for the study was also quite difficult because of the absence of organised databases of their contact details. This led to a prolonged effort of finding alternative sources to locate the required respondents. Multiple sources were used to access the respondents such as online portals and directories, community welfare organisations as gatekeepers, referrals and snowballing. Every source of information had its own limitations, for instance, online portals and directories provided the information about the business but it was not possible to guess if the business owner is a Pakistani female. Personal visits to business sites and trading markets in London helped in locating respondents. However, the ‘invisibility’ of Pakistani female entrepreneurs was a major hindrance. Either they were co-owners in the family business or they were not actively participating in the business despite being the sole owner. To identify the potential respondents, I participated in social events in the Pakistani community. It also helped to win the trust of the Pakistani female entrepreneurs, who were reluctant to talk about their experiences. Adopting an ethnographic stance to delve deep in to the social environment of the respondents facilitated this exploratory study.
Being a cultural insider gave me an advantage. Being aware of the taboos in Pakistani culture generally and about the apprehensions of Pakistani female entrepreneurs (respondents) in particular, I took great care in generating interview data by choosing suitable probes during the interviews. Respondents also felt at ease with a Pakistani researcher, who speaks the same language and who understands their concerns because of being the part of the same culture and religion. However, being a ‘cultural insider’ also has its disadvantages. Sharing the same cultural norms, values and traditions meant too many assumptions about influences, motivations, behaviour and insight could be taken for granted whereas explanation of the same could shed real light them. On several occasions, respondents tried to narrate a story to match the (perceived) expectations, to try and shape the opinion and to show them more as being patriotic and religious to the researcher (evident from anti-narratives in interview transcripts).
I followed a qualitative research approach which is characterised by its commitment to the collection of data in the context in which social phenomena occur naturally and to the generating an understanding of social phenomena which is grounded in the perspectives of research participants (Miles & Huberman, 1994). Therefore, interviews were conducted at the business sites of the respondents and other places of convenience suggested by the respondents, both at work hours as well as out of work hours. In-depth interviews were conducted with 40 Pakistani female entrepreneurs to elicit accounts of their lived experience regarding their personal networks in relation to their entrepreneurial ventures. Interviews were pre-scheduled and each interview session was 60–90 minutes long. Respondents were requested to share the stories (narratives) of their migration, networking and businesses. All interviews were digitally recorded with the explicit permission of the respondents.
Grounded Theory Analysis
Data analysis starts right from the data collection stage in any type of qualitative research. The researcher, who is interviewing the respondents, interprets the respondents’ words, thinks of follow-up questions and on the spot decides to use certain probes to get more detailed and in-depth information. Grounded theory was employed as a data analysis technique to perform constant comparison of data to reveal the themes leading to interesting and emergent findings. Glaser and Strauss (1967) referred to grounded theory as ‘a general method of comparative analysis’ (p. 1).
The data analysis framework was based on the principles of grounded theory as propounded by Corbin and Strauss (2008). The framework included three forms of coding—open, axial and selective—each representing different orders of in-depth enquiry. Interview transcripts were analysed using the above-mentioned analytical framework. The data analysis software NVivo 8 was used to aid the process of analysis. As a first step, grounded theory analysis data was deconstructed using line-by-line analysis and important concepts were identified from the data forming 400 open codes. The second step involved the grouping of similar concepts (open codes) to form 5 higher order categories and 16 sub-categories, and in the final step, out of 5 higher order categories, a core category, indicated the gist of the research, was identified around which all other categories were interweaved to present a broader picture.
Ethnographic Accounts of Pakistan Female Entrepreneurs
A typical immigrant Pakistani female entrepreneur is 30–50 years old, married with married children living with her husband and running her business for last 20–30 years. Many immigrant Pakistani females are highly educated whereas some are illiterate as well. They are all in the service sector with a majority of them in personal services.
Being a Pakistani Female!
The Pakistani female adopts the distinct roles of a mother, sister, daughter and wife and these roles at times coincide with or are in conflict with their career aspirations. However, these roles are constructed differently for British-born Pakistani females and for immigrant Pakistanis. Immigrant Pakistani female entrepreneurs described Pakistani males to be ‘typical–very demanding’ who believe in the traditional role of female specified by culture and who do not encourage the career aspirations of females.
A Pakistani female is expected to stay at home. Going out for a job or for business is not a socially desired activity. This cultural norm has not changed even after migration to a developed country like the United Kingdom and is passed on to the next generations, who, even when they disapprove, find it difficult to deviate from it. Although Pakistani women have the dual responsibility for their households and work (if they join business/work), there seem to be no negative sentiments attached to this duality. Rather they argue in favour of this traditional role of Pakistani females and how that subsumes such dualities.
‘Household is the Foremost Duty of a Pakistani Female’
Managing the household is the foremost duty of a Pakistani female and this is the area where she dominates. For some of the women, the household is a duty but for others it is simply a place governed by them. The traditional role of Pakistani female limits the sphere of immigrant Pakistani female entrepreneurs regarding the choice of business sectors, working hours outside home and their networking behaviour. Because of socially constructed gender roles, Pakistani females are generally housewives acquiring skills in the traditional household chores which they translate into mini scale business ventures, for instance, in food and clothing retail or wholesale, and beauty salons.
‘Protective Males’ or ‘Oppressed Females’!
Pakistani society is considered to be a ‘male dominated’ society where females have very little say in affairs of life. Respondents were asked to reflect on this issue and in some cases discussion on these issues arose automatically without them being invited to talk on the issue of male domination. The notion of ‘suppressing males’ do not hold true as it is a matter of conceptualising the position of Pakistani women. Western views, generally formed by comparing the Asian (Pakistani society norms) to Western societal norms, see Pakistani females as a ‘disadvantaged’ group—suppressed and devoid of their rights. However, Pakistani female entrepreneurs view the scenario as ‘protective males’ instead of ‘oppressed females’ where ‘Pakistani females respect and follow their cultural norms’. The notion of ‘protective males’ is reflected in the co-ownership of entrepreneurial ventures where dealing with suppliers is normally taken care by male members of the family.
Choice of Business Sector
The choice of a business sector depends on the motives to start a business. Being less educated, having limited knowledge of different business fields, a typical housewife wanting to start a business tends to choose something she is acquainted with such as clothing or food. Well-educated, experienced, well-aware and growth ambitious females, who want flexibility and a good work–life balance, or who want to utilize their skills and knowledge acquired from prior experience in a relevant field, normally gravitate towards mainstream businesses. The choice of businesses has some distinct dimensions:
It (opposition) was from makeup artists, ‘mehndi’ artist, even magazines and even family even a lot of family hated me, not my brothers or sisters but a couple of relatives said, ‘she needs to stop doing this, why is she doing this, she is working and having a good job, she is going to ruin our name in the community, she has become NAI (in Urdu name for hairdresser) or hair dresser or a makeup artist not a good job to do’. You know and my mum went through a lot, even my mother in law went through all that for me, I was suppressed by quite close family members who tried to stop my business. (Interview No. 29)
This section gave a detailed account of the factors that affect Pakistani female entrepreneurs and their entrepreneurial ventures. This is followed by a discussion on how they form and maintain their personal networks in a given context and how these personal networks impact on their entrepreneurial ventures.
Composition and Contents of Pakistani Female Diaspora Networks
Immigrant Pakistani female entrepreneurs are closely connected to their families (both nuclear and extended families) and have the majority of ethnic ties in their network. Their friends and business associates are Pakistani and Muslims. There is a strong sense of connectedness with the native country (Pakistan) and Pakistanis in the United Kingdom. While this strong sense of belonging defines their ethnic network, it also restricts their contacts with other communities in London. Religion, along with ethnicity, also plays an important role in shaping the personal network of Pakistani female entrepreneurs. In some cases, this point was made explicitly.
Yes I have many friends here. If I want to avoid them I can’t (laughter). They are mostly Pakistani because our thinking is alike [mental compatibility]. Because same blood, same place so there are many commonalities. I have many Indian customers; I have very good relations with them as well. But there are that things we can’t discuss because our religions are different so like there are many aspects that we cannot ignore when talking to other communities. (Interview No. 2)
Interview data show that immigrant Pakistani female entrepreneurs have strong ethnic ties in their personal network.
‘Women-only-network’
Pakistani female entrepreneurs stated that they preferred for business which had a ‘women-only-environment’. Coupled with the choice of business, they mentioned female friends, the help of sisters and advice from mothers as their main sources of advice and support. Their choice of a ‘women-only-environment’ is the product of religious and cultural boundaries. One of the respondents narrates:
Being a Pakistani and a Muslim obviously we can’t go out much and we can’t work for somebody according to their rules, so what else could I do? I couldn’t do a grocery shop or a food shop so what is the best business for the women? so that’s why I got into this business and I started this privately and at the same time I am dealing with the women and being a Muslim we don’t want to be talking to men. So that’s why I chose this business. (Interview No. 18)
The preference for a ‘women-only-environment’ becomes the basis for locating their ventures in the traditional sector. Pakistani female entrepreneurs follow their religious and cultural values that do not allow contacting men (even for business purposes) and long sociable working hours.
Pakistani female entrepreneurs have dense networks characterised by strong ties. They are strongly connected to family, friends and ethnic members. Data analysis reveals that Pakistani female entrepreneurs who operate in such dense networks usually end up with little or no growth of their ventures.
Exchange Relationship and Content of Network Exchange
Economic exchange is the main characteristic of entrepreneurs’ personal networks. As discussed in the above section about the use of network by entrepreneurs, there are some resources that Pakistani female entrepreneurs extract from their network, and at times network formation is based solely on the benefit network members can provide for the business. These resources are called the content of exchange relationship (Cook & Whitmeyer, 1992). Pakistani female entrepreneurs use their personal network mainly as a support network. The majority of respondents mentioned ‘emotional support and encouragement’ as the main support that they receive from their personal network. Apart from emotional support, Pakistani female entrepreneurs use their personal network for advice in business matters, particularly when it comes to taking important decisions.
Network support manifests in a variety of ways for Pakistani female entrepreneurs, ranging from emotional support to providing services and tangible resources for the business. However, they are hesitant to acknowledge that they have received any kind of support from their personal network. One of the reasons for not acknowledging such support could be the use the business as an expression of their independence and the association of business success with the personal success. One of the respondents stated: ‘My brothers and sisters have their own settled lives, and I am doing business for my survival. What have they got to do with my business? And no one in family helped me, neither did I want anyone to help me.’ (Interview No. 31)
This depicts her pride in doing the business independently unlike all other females of her family. This flavour of independence and uniqueness coupled, paradoxically, with a sense of adherence to societal norms gives Pakistani females a highly prestigious position in their personal network.
Multiplexity of Ties in Personal Network
Relations with network actors can be single stranded or multiple stranded. Single-stranded relations are those where network actors are involved in only one kind of exchange relation such as supplier of the business or friends of the focal network actor, whereas, multi-stranded relations are more complex where business suppliers could be family members and/or where friends are business customers as well. Wasserman and Faust (1994, p. 422) define multiplexity as the ‘tendency of two or more relations to occur together’.
Pakistani female entrepreneurs have more multiplex ties in their personal network. Empirical results show that family members are business partners (co-owners) of the entrepreneurial ventures, friends are business associates and vice versa. Respondents mentioned that over some time now their clients have become their friends, there is no or less differentiation between the two set of relationships.
Theoretically speaking, these two sets of relationships are considered two different categories, one is a very formal set of relationships called ‘formal networks’ that includes all business associates, customers, suppliers, while ‘informal networks’ include, in the main, friends and family members. This shows that the boundaries of formal and informal networks are blurring when we take multiplex ties into consideration.
Transition in Personal Network Based on (Mis)trust
Due to its emergent and dynamic nature, the personal network grows over time. Empirical results show a transition in the personal networks of Pakistani female entrepreneurs over time. Their reliance on family and friends has not changed even with the growth in business has also extended their personal networks. In these circumstances, we find a movement from dense networks and strong ties to more, open and porous networks accompanied by the increase in weak ties. During start-up phase, Pakistani female entrepreneurs had family and friends, ethnic suppliers and customers in their personal network. However, the growth phase of the business shows not only an increase in the number of business associates but also a shift in terms of ethnicity of the business associates as well. The transition from ethnic to non-ethnic personal networks becomes part of the transition from start-up to growth phases of the entrepreneurial venture. One of the respondents who started developing projects only with the Pakistani community during the start-up phase but who over a period of eight years is now working across communities, comments as follows:
(Now I take the projects) across communities but I started with Pakistani community as people wanted them but we didn’t just want to work with Pakistani community as you then got only work with Pakistani community and less scope for growth as Pakistani community is only 2% of British population. (Also apart from diversification of products) these issues or products are transferrable to a bigger market. (Interview No. 25)
The diversification of products across communities not only helps to demonstrate the growth of business but it also depicts the growth of the personal network. Similarly, finding new sources of raw materials with the expansion of the business also indicates a capability for introducing new ties in the network.
One of the significant elements in shaping the personal network of Pakistani female entrepreneurs is ‘trust’ that helps maintain close ethnic ties. The Merriam-Webster dictionary defines trust as ‘assured reliance on the character, ability, strength, or truth of someone or something/one in which confidence is placed’.2 Trust is a significant content of entrepreneurs’ personal networks. It is the main ingredient in retaining family and friends as the major part of Pakistani female entrepreneurs’ personal network; hence, the emergence of dense networks. However, Pakistani female entrepreneurs expressed their preference to keep their business network separate from the social circle. Their unpleasant business experiences with fellow Pakistanis led them to reduce ethnic ties in network.
Interview responses of Pakistani female entrepreneurs reveal a high degree of mistrust in ethnic (Pakistani) customers, suppliers and other Pakistani business associates. When probed in depth, they mentioned the stories of deception and dishonesty on the part of Pakistani suppliers: ‘With Pakistanis you deal in millions, they will deceive you and will never take complaints, they are dishonest people.’ (Interview No. 17)
They mentioned their preferred suppliers and customers to be non-ethnic (British and Indian Suppliers in England). The transition from ethnic to non-ethnic network members is based on mistrust of the ethnic network members. The transition and expansion of a network is generally associated with signs of growth of entrepreneurial ventures. The expansion of business means that an increase in the clients’ base, increase in the sources of raw materials (suppliers) and an extended chain of business associates. At the same time, they are all part of the personal network, thus demonstrating the expansion of the network of relations as well. Empirical data shows a transition from ethnic to non-ethnic members in the personal network of Pakistani female entrepreneurs as depicted in Figure 1.

Starting the business with ethnic (Pakistani) suppliers and extending it to non-ethnic suppliers over years show that with the growth of business Pakistani female entrepreneurs had to identify and use diversified sources of raw material. At the same time, it also shows that with this diversification and extension in the number of suppliers their personal network has also grown. Apart from growth in numbers, we find an increase in the ‘diversity of ties’ in the personal network. Instead of ethnic customers and suppliers only, Pakistani female entrepreneurs are linked with non-ethnic customers and suppliers (from other communities of London).
Conclusion
This exploratory analysis provides a sketch of personal networks of Pakistani female entrepreneurs in London. The journey from ‘housewife’ to ‘entrepreneur’ of Pakistani female entrepreneurs is marked by struggle and in finding a way out from socio-religious boundaries. Traditionally, the Pakistani female is supposed to stay within the chardeewari (four walls) of the house that she considers a ‘den where she rules’ but which is also guarded by ‘protective Pakistani males’. Because of being restricted to the house, change in the geographical context (from native land Pakistan to the United Kingdom) does not necessarily bring about significant change in the belief system of the immigrant Pakistani females. They, therefore, tend to hold on to the same socio-religious values. This unique social context has an important bearing on the composition of the personal network that in turns influences the choice of business sector, the search and availability of information and resources and the growth prospects for their entrepreneurial ventures (Chaganti & Greene, 2002). Immigrant Pakistani entrepreneurs prefer to retain kinship ties in their personal network and in entrepreneurial ventures as opposed to ethnic ties. Hisrich and Brush (1986) argue that female entrepreneurs consult their spouses in decision-making unlike their spouses. Wider ethnic ties in business are not preferred because of mistrust of ethnic members of the network. Their network is based on strict adherence to religious values and traditional gender norms; hence their networks are ‘women-only-networks’ consisting mostly of Muslim females. Ibarra (1995) emphasised that ethnic minority entrepreneurs have access to differential resources because of the distinct personal network they possess. All Pakistani female entrepreneurs draw emotional support and encouragement from their personal network that in some cases help with active participation of network members in the entrepreneurial ventures, thus giving rise to ‘multiplex ties’. Pakistani female entrepreneurs have multiplex ties in their networks where family members are business associates as well. This shows that they maintain dense network with strong ties and with high degree of multiplexity. For Pakistani female entrepreneurs, growth can be termed as a personal choice because they are ‘entrepreneurs by choice’. In trying to attain and fulfil their desired status, they cease to struggle despite having opportunities. Research studies on ethnic minority entrepreneurs show that trust in the ethnic community is the basic element that distinguishes their business distinct from those of indigenous entrepreneur. It also underpins the expansion in the personal network from ethnic to non-ethnic which reflects the growth of the entrepreneurial venture. However, in the case of Pakistani female entrepreneurs, expansion in personal networks and the transition from ethnic to non-ethnic networks is not necessarily the outcome of growth of venture; rather it is the result of mistrust of their own ethnic network 2
Trust (2009) in Merriam-Webster Online Dictionary. Retrieved 30 November 2009, from https://www.merriam-webster.com/dictionary/trust
