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Growth in first- and second-generation immigrant firms in Sweden

Author

Listed:
  • Efendic, Nedim

    () (Stockholm School of Economics)

  • Andersson, Fredrik W.

    () (Statistics Sweden)

  • Wennberg, Karl

    () (Institute for Analytical Sociology (IAS) & Department of Management and Engineering Linköping University, Sweden and Ratio Institute)

Abstract

Despite the burgeoning literature on immigrant entrepreneurship, there is a dearth of research on the social and economic factors shaping the performance of immigrant-run firms. Drawing upon human and social capital theory and assimilation theory, we investigate differences in performance measured as revenue growth in a comparative study of native and immigrant CEOs. Following 50,002 small firms in Sweden over four years, we find distinct patterns in both firm size and revenue growth between firms managed by immigrants and by natives. While firms run by second-generation immigrants from OECD countries exhibit higher growth rates than natives, the reverse is true for second generation immigrants from non-OECD countries, suggesting that economic integration in terms of immigrants’ small business growth in Sweden is characterized by segmented rather than universal assimilation.

Suggested Citation

  • Efendic, Nedim & Andersson, Fredrik W. & Wennberg, Karl, 2015. "Growth in first- and second-generation immigrant firms in Sweden," Ratio Working Papers 265, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0265
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    References listed on IDEAS

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    Cited by:

    1. Bird, Miriam & Wennberg, Karl, 2016. "Why family matters: The impact of family resources on immigrant entrepreneurs' exit from entrepreneurship," Journal of Business Venturing, Elsevier, vol. 31(6), pages 687-704.

    More about this item

    Keywords

    Immigrant entrepreneurship; intergenerational differences; firm growth; Sweden;

    JEL classification:

    • 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
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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