From a five-year researchprogramme based on a questionnaire survey targeted a total about 600 entrepreneursfrom different ethnic groups established in metropolitan; Montreal, Toronto andVancouver in Canada. Perreault, Brenner, Menzies, Filion, & Ramangalahy(2007) have discovered a significant relationship between the social capitaland business performance of the people lived in these areas. Social capital wasmeasured using social, commercial or professional membership in co-ethnicgroups that the measurements refers to percentages supposing the respondents inillegal or secret associations are working in good faith. For business performanceorganizational data was considered, mainly the size of the business reflectedthrough number of employees working in the organization, The number of years inthe business and the business turnover of the financial qualification of firms. The main purpose of this research was to identify therelationship between business performance and social capital for ethnicentrepreneurs, in their various forms.
They tested the concept and the hypothesis using fourethnicities Group, Chinese, Italian, Sikh, and Jewish, lived in Montreal,Toronto, Vancouver cities in Canada.Business performance negativelyassociated with employee’s percentage which states that though there’s a higherreliance within co-ethnic organizations lower performance was reflected. On theother hand, membership of organizations has a positive effect on theperformance of ethnic businesses, because high-performing entrepreneurs aremembers of co-ethnicity, which proves that membership in co-ethnicorganizations is more networking on their part reflecting as a more consistentproxy for networking. However, they were able to estimate the membership ofhigh and low performing businesses from the selected social capital variables,saying that social capital positively contributes to institutional performance.Eventhough it is difficult to decide empiricallywhether the use of social capital hinders performance, or whether poor performancecentrals to the use of social capital their empirical results are able to validatecommonly held views about social capital andbusiness performance.