IDEAS home Printed from https://ideas.repec.org/a/sae/jouent/v27y2018i2p243-257.html
   My bibliography  Save this article

Immigrant Entrepreneurship and Business Survival during Recession: Evidence from a Local Economy

Author

Listed:
  • Nahikari Irastorza
  • Iñaki Peña-Legazkue

Abstract

Empirical evidence suggests that immigrants appear to be more entrepreneurially active than native people. While the formation of new firms by immigrants has been widely studied, the literature about the performance of these new ventures created by immigrants after their inception remains scarce and anecdotal. This study sheds light on firm-internal and firm-external factors that affect the life expectancy of new firms created by immigrants within a local economy during a period of recession, when the creation of firms is particularly important. The results show that immigrant entrepreneurs are more likely to quit their businesses earlier than their native counterparts. We argue that this may be partially explained by the liability of foreignness faced by immigrants.

Suggested Citation

  • Nahikari Irastorza & Iñaki Peña-Legazkue, 2018. "Immigrant Entrepreneurship and Business Survival during Recession: Evidence from a Local Economy," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 243-257, September.
    • Handle: RePEc:sae:jouent:v:27:y:2018:i:2:p:243-257
    DOI: 10.1177/0971355718781248
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0971355718781248
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0971355718781248?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nahikari Irastorza & Inaki Pena, 2014. "Immigrant Entrepreneurship: Does the Liability of Foreignness Matter?," Business and Management Research, Business and Management Research, Sciedu Press, vol. 3(1), pages 1-17, March.
    2. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 1-11, February.
    3. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    4. Nikolinka Fertala, 2007. "A study of immigrant entrepreneurship in Upper Bavaria," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 4(2), pages 179-206.
    5. Michael Fritsch & Udo Brixy & Oliver Falck, 2006. "The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 28(3), pages 285-306, May.
    6. Nicholls-Nixon, Charlene L. & Cooper, Arnold C. & Woo, Carolyn Y., 2000. "Strategic experimentation: Understanding change and performance in new ventures," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 493-521.
    7. Veronique A.J.M. Schutjens & Egbert Wever, 2000. "Determinants of new firm success," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 135-153.
    8. Levent, T.B. & Masurel, E. & Nijkamp, P., 2002. "Diversity in entrepreneurship: ethnic and female roles in irban economic life," Serie Research Memoranda 0032, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    9. Rocío Aliaga-Isla (PhD) & Alex Rialp (PhD), 2013. "Systematic review of immigrant entrepreneurship literature: previous findings and ways forward," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(9-10), pages 819-844, December.
    10. Bull, Ivan & Winter, Frederick, 1991. "Community differences in business births and business growths," Journal of Business Venturing, Elsevier, vol. 6(1), pages 29-43, January.
    11. Elisabeth Mueller, 2014. "Entrepreneurs from low-skilled immigrant groups in knowledge-intensive industries: company characteristics, survival and innovative performance," Small Business Economics, Springer, vol. 42(4), pages 871-889, April.
    12. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    13. Jonathan Levie, 2007. "Immigration, In-Migration, Ethnicity and Entrepreneurship in the United Kingdom," Small Business Economics, Springer, vol. 28(2), pages 143-169, March.
    14. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guidi, Francesco & Solomon, Edna & Trushin, Eshref & Ugur, Mehmet, 2015. "Inverted-U relationship between innovation and survival: Evidence from firm-level UK data," EconStor Preprints 110896, ZBW - Leibniz Information Centre for Economics.
    2. Elena Cefis & Orietta Marsili, 2005. "A matter of life and death: innovation and firm survival," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 1167-1192, December.
    3. Colombelli, Alessandra & Krafft, Jackie & Quatraro, Francesco, 2013. "Properties of knowledge base and firm survival: Evidence from a sample of French manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1469-1483.
    4. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data," Research Policy, Elsevier, vol. 45(7), pages 1474-1492.
    5. Daniel Fackler & Claus Schnabel & Joachim Wagner, 2013. "Establishment exits in Germany: the role of size and age," Small Business Economics, Springer, vol. 41(3), pages 683-700, October.
    6. Raquel Ortega-Argilés & Rosina Moreno, 2005. "Firm Competitive Strategies And The Likelihood Of Survival - The Spanish Case," ERSA conference papers ersa05p347, European Regional Science Association.
    7. Agustí Segarra & Maria Callejón, 2002. "New Firms' Survival and Market Turbulence: New Evidence from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(1), pages 1-14, February.
    8. Paul H. Jensen & Elizabeth Webster & Hielke Buddelmeyer, 2008. "Innovation, Technological Conditions and New Firm Survival," The Economic Record, The Economic Society of Australia, vol. 84(267), pages 434-448, December.
    9. Francesco Quatraro & Marco Vivarelli, 2015. "Drivers of Entrepreneurship and Post-entry Performance of Newborn Firms in Developing Countries," The World Bank Research Observer, World Bank, vol. 30(2), pages 277-305.
    10. Doan, Quang Hung & Vu, Hoang Nam & Dao, Ngoc Tien, 2013. "Sub-National Institutions and Firm Survival in Vietnam," MPRA Paper 63653, University Library of Munich, Germany.
    11. FERRAGINA, Anna Maria, 2013. "The Impact of FDI on Firm Survival and Employment: A Comparative Analysis for Turkey and Italy," CELPE Discussion Papers 127, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    12. Francine Lafontaine & Marek Zapletal & Xu Zhang, 2019. "Brighter prospects? Assessing the franchise advantage using census data," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(2), pages 175-197, April.
    13. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    14. Falck, Oliver, 2005. "Das Scheitern junger Betriebe: Ein Überlebensdauermodell auf Basis des IAB-Betriebspanels," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-32-05, University of Passau, Faculty of Business and Economics.
    15. Helen Louri & Costas Peppas & Efthymios Tsionas, 2006. "Foreign Presence, Technical Efficiency and Firm Survival in Greece: A Simultaneous Equation Model with Latent Variables Approach," International Studies in Entrepreneurship, in: Enrico Santarelli (ed.), Entrepreneurship, Growth, and Innovation, chapter 0, pages 199-221, Springer.
    16. Silviano Esteve-Pérez & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2010. "A competing risks analysis of firms’ exit," Empirical Economics, Springer, vol. 38(2), pages 281-304, April.
    17. D.B. Audretsch & L. Klomp & E. Santarelli & A.R. Thurik, 2004. "Gibrat's Law: Are the Services Different?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 301-324, May.
    18. Flora Bellone & Patrick Musso & Michel Quéré & Lionel Nesta, 2006. "Productivity and Market Selection of French Manufacturing Firms in the Nineties," Revue de l'OFCE, Presses de Sciences-Po, vol. 97(5), pages 319-349.
    19. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    20. Bruckner, Eberhard, 2003. "Überlebenschancen neu gegründeter Firmen: Ein evolutionstheoretischer Zugang," Discussion Papers, Research Unit: Civil Society and Transnational Networks SP IV 2003-105, WZB Berlin Social Science Center.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jouent:v:27:y:2018:i:2:p:243-257. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ediindia.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.