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Entrepreneurship and immigration: evidence from GEM Luxembourg

Author

Listed:
  • Chiara Peroni

    (Institut national de la statistique et des études économiques du Grand-Duché du Luxembourg (STATEC)
    Agence pour la normalisation et l’économie de la connaissance (ANEC))

  • Cesare A. F. Riillo

    (Institut national de la statistique et des études économiques du Grand-Duché du Luxembourg (STATEC)
    Agence pour la normalisation et l’économie de la connaissance (ANEC))

  • Francesco Sarracino

    (Institut national de la statistique et des études économiques du Grand-Duché du Luxembourg (STATEC)
    Agence pour la normalisation et l’économie de la connaissance (ANEC)
    National Research University Higher School of Economics)

Abstract

This study analyses the role of immigration background and education in creating new business initiatives in Luxembourg, a country where 44 % of the resident population is immigrant. We investigate the features of entrepreneurs and of the Luxembourgish System of Entrepreneurship using the Global Entrepreneurship Monitoring surveys of 2013 and 2014. We study the effect of immigration through all the stages of entrepreneurial process: interest in starting a new business, effectively starting, running a new business and managing an established business. We adopt a sequential logit to model entrepreneurial process as a sequence of stages. We find that first-generation immigrants, and in particular highly educated ones, are more interested in starting a new business than non-immigrants, but they do not differ in subsequent entrepreneurial phases. We argue that policies to attract highly educated immigrants can promote entrepreneurial initiatives in Luxembourg.

Suggested Citation

  • Chiara Peroni & Cesare A. F. Riillo & Francesco Sarracino, 2016. "Entrepreneurship and immigration: evidence from GEM Luxembourg," Small Business Economics, Springer, vol. 46(4), pages 639-656, April.
    • Handle: RePEc:kap:sbusec:v:46:y:2016:i:4:d:10.1007_s11187-016-9708-y
    DOI: 10.1007/s11187-016-9708-y
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    Cited by:

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    2. Riillo, Cesare Fabio Antonio & Peroni, Chiara, 2022. "Immigration and entrepreneurship in Europe: cross-country evidence," MPRA Paper 114580, University Library of Munich, Germany.
    3. Johannes Kleinhempel & Sjoerd Beugelsdijk & Mariko J. Klasing, 2022. "The Changing Role of Social Capital During the Venture Creation Process: A Multilevel Study," Entrepreneurship Theory and Practice, , vol. 46(2), pages 297-330, March.
    4. O'Connor, Kelsey J., 2020. "The effect of immigration on natives’ well-being in the European Union," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 257-274.
    5. Nick Williams & Besnik A. Krasniqi, 2018. "Coming out of conflict: How migrant entrepreneurs utilise human and social capital," Journal of International Entrepreneurship, Springer, vol. 16(2), pages 301-323, June.
    6. Steven A. Brieger & Michael M. Gielnik, 2021. "Understanding the gender gap in immigrant entrepreneurship: a multi-country study of immigrants’ embeddedness in economic, social, and institutional contexts," Small Business Economics, Springer, vol. 56(3), pages 1007-1031, February.
    7. Gergely Horváth & Rui Zhang, 2022. "Ethnic entrepreneurship, assimilation, and integration policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(4), pages 781-816, August.
    8. Dabić, Marina & Vlačić, Bozidar & Paul, Justin & Dana, Leo-Paul & Sahasranamam, Sreevas & Glinka, Beata, 2020. "Immigrant entrepreneurship: A review and research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 25-38.
    9. Johan Klaesson & Özge Öner, 2021. "Ethnic enclaves and segregation—self-employment and employment patterns among forced migrants," Small Business Economics, Springer, vol. 56(3), pages 985-1006, February.
    10. Balaussa Azubayeva, 2021. "The Impact of Cultural Capital on Development of Entrepreneurship in Wales," Administrative Sciences, MDPI, vol. 11(4), pages 1-24, December.
    11. Ghimire Keshar M., 2021. "Supply of immigrant entrepreneurs and native entrepreneurship," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-42, January.
    12. Cathy Yang Liu & Lin Ye & Bo Feng, 2019. "Migrant entrepreneurship in China: entrepreneurial transition and firm performance," Small Business Economics, Springer, vol. 52(3), pages 681-696, March.
    13. Shaomeng Jia & Joshua K. Bedi, 2022. "To Assimilate or Not to Assimilate? A Cross-country Study on Assimilating Entrepreneurial Tendencies," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 37(Spring 20), pages 1-31.
    14. Richard Blaese & Schneider Noemi & Liebig Brigitte, 2021. "Should I Stay, or Should I Go? Job satisfaction as a moderating factor between outcome expectations and entrepreneurial intention among academics," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1357-1386, September.
    15. Maribel Guerrero & Vesna Mandakovic & Mauricio Apablaza & Veronica Arriagada, 2021. "Are migrants in/from emerging economies more entrepreneurial than natives?," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 527-548, June.
    16. Fernandez, Viviana, 2023. "Family entrepreneurship around the world," International Review of Financial Analysis, Elsevier, vol. 89(C).
    17. Frederick Wedzerai Nyakudya, 2019. "Positive local externalities of immigration on entrepreneurship: Evidence from the UK East Midlands region," Local Economy, London South Bank University, vol. 34(3), pages 271-293, May.
    18. Nerys Fuller-Love & Mofoluke Akiode, 2020. "Transnational Entrepreneurs Dynamics in Entrepreneurial Ecosystems: A Critical Review," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 41-66, January.
    19. Shayegheh Ashourizadeh & Jizhen Li & Kent Adsbøll Wickstrøm, 2022. "Immigrants` Entrepreneurial Networks and Export: A Comparative Study," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1291-1318, September.
    20. Arrighetti, Alessandro & Canello, Jacopo, 2023. "Explaining the Multifaceted Patterns of Migrant Entrepreneurship in the Global Economy: A Resource-Based Approach," EconStor Preprints 273451, ZBW - Leibniz Information Centre for Economics.
    21. Sinkovics, Noemi & Reuber, A. Rebecca, 2021. "Beyond disciplinary silos: A systematic analysis of the migrant entrepreneurship literature," Journal of World Business, Elsevier, vol. 56(4).
    22. Dheer, Ratan J.S. & Lenartowicz, Tomasz, 2020. "Effect of generational status on immigrants’ intentions to start new ventures: The role of cognitions," Journal of World Business, Elsevier, vol. 55(3).
    23. Shayegheh Ashourizadeh & Jizhen Li & Kent Adsbøll Wickstrøm, 0. "Immigrants` Entrepreneurial Networks and Export: A Comparative Study," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-28.
    24. Öner, Özge & Klaesson, Johan, 2018. "Ethnic Enclaves and Labor Market Outcomes – What Matters Most: Neighborhood, City or Region?," Working Paper Series 1251, Research Institute of Industrial Economics.

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