IDEAS home Printed from https://ideas.repec.org/p/hhs/lucirc/2017_017.html
   My bibliography  Save this paper

The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden

Author

Listed:
  • Tavassoli, Sam

    (RMIT University)

  • Trippl, Michaela

    (University of Vienna)

Abstract

This paper seeks to provide novel insights into the effects of ethnic communities on immigrants’ entrepreneurial activities. We investigate to what extent the decision of an employed immigrant to become an entrepreneur is associated with his or her embeddedness in ethnic networks in the host region. We capture such embeddedness through various mechanisms. Using longitudinal registered-data from Sweden and employing a Logit model, we find that merely being located in an ethnic community does not have an influence on immigrant entrepreneurship; rather what matters is being located in ethnic communities that have a high share of entrepreneurs themselves.

Suggested Citation

  • Tavassoli, Sam & Trippl, Michaela, 2017. "The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden," Papers in Innovation Studies 2017/17, Lund University, CIRCLE - Centre for Innovation Research.
  • Handle: RePEc:hhs:lucirc:2017_017
    as

    Download full text from publisher

    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201717_tavassoli_et_al.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Per-Anders Edin & Peter Fredriksson & Olof Åslund, 2003. "Ethnic Enclaves and the Economic Success of Immigrants—Evidence from a Natural Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 118(1), pages 329-357.
    2. Robert Kloosterman & Joanne Van Der Leun & Jan Rath, 1999. "Mixed Embeddedness: (In)formal Economic Activities and Immigrant Businesses in the Netherlands," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 252-266, June.
    3. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Firms and the Economics of Skilled Immigration," Innovation Policy and the Economy, University of Chicago Press, vol. 15(1), pages 115-152.
    4. Sari Pekkala Kerr & William R. Kerr & William F. Lincoln, 2015. "Skilled Immigration and the Employment Structures of US Firms," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 147-186.
    5. Cutler, David M. & Glaeser, Edward L. & Vigdor, Jacob L., 2008. "When are ghettos bad? Lessons from immigrant segregation in the United States," Journal of Urban Economics, Elsevier, vol. 63(3), pages 759-774, May.
    6. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    7. Luigi Guiso & Fabiano Schivardi, 2011. "What Determines Entrepreneurial Clusters?," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 61-86, February.
    8. Ken Clark & Stephen Drinkwater, 2010. "Patterns of ethnic self-employment in time and space: evidence from British Census microdata," Small Business Economics, Springer, vol. 34(3), pages 323-338, April.
    9. Anna Piil Damm, 2009. "Ethnic Enclaves and Immigrant Labor Market Outcomes: Quasi-Experimental Evidence," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 281-314, April.
    10. Martin Andersson & Johan P Larsson, 2016. "Local entrepreneurship clusters in cities," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 39-66.
    11. Martin Andersson & Steven Klepper, 2013. "Characteristics and performance of new firms and spinoffs in Sweden," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 245-280, February.
    12. Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 1-27, May.
    13. Sam Tavassoli & Viroj Jienwatcharamongkhol, 2016. "Survival of entrepreneurial firms: the role of agglomeration externalities," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(9-10), pages 746-767, October.
    14. Andrés Rodríguez-Pose & Viola von Berlepsch, 2014. "When Migrants Rule: The Legacy of Mass Migration on Economic Development in the United States," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 104(3), pages 628-651, May.
    15. Michael S. Dahl & Olav Sorenson, 2012. "Home Sweet Home: Entrepreneurs' Location Choices and the Performance of Their Ventures," Management Science, INFORMS, vol. 58(6), pages 1059-1071, June.
    16. Hoang, Ha & Antoncic, Bostjan, 2003. "Network-based research in entrepreneurship: A critical review," Journal of Business Venturing, Elsevier, vol. 18(2), pages 165-187, March.
    17. Mario Davide Parrilli, 2009. "Collective efficiency, policy inducement and social embeddedness: Drivers for the development of industrial districts," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(1), pages 1-24, January.
    18. Michael Fritsch & Michael Wyrwich, 2014. "The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925-2005," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 955-973, June.
    19. Levesque, Moren & Minniti, Maria, 2006. "The effect of aging on entrepreneurial behavior," Journal of Business Venturing, Elsevier, vol. 21(2), pages 177-194, March.
    20. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    21. Robert C. Kloosterman, 2010. "Matching opportunities with resources: A framework for analysing (migrant) entrepreneurship from a mixed embeddedness perspective," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(1), pages 25-45, January.
    22. Trevor Jones & Monder Ram & Paul Edwards & Alex Kiselinchev & Lovemore Muchenje, 2014. "Mixed embeddedness and new migrant enterprise in the UK," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(5-6), pages 500-520, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alessandra Colombelli & Elena Grinza & Valentina Meliciani & Mariacristina Rossi, 2021. "Pulling Effects in Immigrant Entrepreneurship: Does Gender Matter?," Economic Geography, Taylor & Francis Journals, vol. 97(1), pages 1-33, January.
    2. Marcello De Rosa & Luca Bartoli & Sandra Leonardi & Maria Angela Perito, 2019. "The Contribution of Immigrants to Multifunctional Agricultural Systems in Italy," Sustainability, MDPI, vol. 11(17), pages 1-13, August.

    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. Alessandra Colombelli & Elena Grinza & Valentina Meliciani & Mariacristina Rossi, 2021. "Pulling Effects in Immigrant Entrepreneurship: Does Gender Matter?," Economic Geography, Taylor & Francis Journals, vol. 97(1), pages 1-33, January.
    2. 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.
    3. 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.
    4. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    5. Tavassoli, Sam & Jienwatcharamongkhol, Viroj & Arenius, Pia, 2021. "Colocation of Entrepreneurs and New Firm Survival: Role of New Firm Founder’s Experiential Relatedness to Local Entrepreneurs," Papers in Innovation Studies 2021/13, Lund University, CIRCLE - Centre for Innovation Research.
    6. 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.
    7. Emma Neuman, 2021. "Performance and job creation among self-employed immigrants and natives in Sweden," Small Business Economics, Springer, vol. 56(1), pages 403-425, January.
    8. Delia Furtado & Nikolaos Theodoropoulos, 2009. "Intermarriage and Immigrant Employment: The Role of Networks," CReAM Discussion Paper Series 0906, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    9. Bryan Malki & Timur Uman & Daniel Pittino, 2022. "The entrepreneurial financing of the immigrant entrepreneurs: a literature review," Small Business Economics, Springer, vol. 58(3), pages 1337-1365, March.
    10. Glitz, Albrecht, 2014. "Ethnic segregation in Germany," Labour Economics, Elsevier, vol. 29(C), pages 28-40.
    11. Tito Boeri & Marta De Philippis & Eleonora Patacchini & Michele Pellizzari, 2015. "Immigration, Housing Discrimination and Employment," Economic Journal, Royal Economic Society, vol. 125(586), pages 82-114, August.
    12. Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    13. Longhi, Simonetta, 2017. "Spatial-Ethnic Inequalities: The Role of Location in the Estimation of Ethnic Wage Differentials," IZA Discussion Papers 11073, Institute of Labor Economics (IZA).
    14. Pekkala Kerr, Sari & Kerr, William, 2020. "Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012," Research Policy, Elsevier, vol. 49(3).
    15. Simone Schüller & Tanika Chakraborty, 2022. "Ethnic enclaves and immigrant economic integration," IZA World of Labor, Institute of Labor Economics (IZA), pages 287-287, March.
    16. Zimran, Ariell, 2022. "US immigrants’ secondary migration and geographic assimilation during the Age of Mass Migration," Explorations in Economic History, Elsevier, vol. 85(C).
    17. Silvia Ardagna & Annamaria Lusardi, 2009. "Where does regulation hurt? Evidence from new businesses across countries," NBER Working Papers 14747, National Bureau of Economic Research, Inc.
    18. Collins, William J. & Zimran, Ariell, 2019. "The economic assimilation of Irish Famine migrants to the United States," Explorations in Economic History, Elsevier, vol. 74(C).
    19. Nyame-Asiamah, Frank & Amoako, Isaac Oduro & Amankwah-Amoah, Joseph & Debrah, Yaw A., 2020. "Diaspora entrepreneurs’ push and pull institutional factors for investing in Africa: Insights from African returnees from the United Kingdom," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    20. Michael Wyrwich & Michael Stuetzer & Rolf Sternberg, 2016. "Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions," Small Business Economics, Springer, vol. 46(3), pages 467-492, March.

    More about this item

    Keywords

    Immigrants; entrepreneurship; ethnic communities; embeddedness; social capital;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hhs:lucirc:2017_017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/circlse.html .

    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: Torben Schubert (email available below). General contact details of provider: https://edirc.repec.org/data/circlse.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.