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Why Family Matters: The Impact of Family Resources on Immigrant Entrepreneurs’ Exit from Entrepreneurship

Author

Listed:
  • Bird, Miriam

    (Center for Family Business, University of St. Gallen)

  • Wennberg, Karl

    (Stockholm School of Economics, Institute of Analytical Sociology (IAS) and the Ratio Institute)

Abstract

We integrate insights from the social embeddedness perspective with research on immigrant entrepreneurship to theorize on how family resources influence exit from entrepreneurship among previously unemployed immigrant entrepreneurs. Results from a cohort study of immigrant entrepreneurs in Sweden reveal that family resources are important for immigrants to integrate economically into a country. We find that having family members in geographical proximity increases immigrant entrepreneurs’ likelihood of remaining in entrepreneurship. Further, family financial capital enhances immigrant entrepreneurs’ likelihood of remaining in entrepreneurship as well as their likelihood of exiting to paid employment. Although often neglected in immigrant entrepreneurship studies, resources accruing from spousal relationships with natives influence entrepreneurs’ exit behavior. We discuss contributions for research on entrepreneurial exit, entrepreneurs’ social embeddedness, and immigrant entrepreneurship.

Suggested Citation

  • Bird, Miriam & Wennberg, Karl, 2016. "Why Family Matters: The Impact of Family Resources on Immigrant Entrepreneurs’ Exit from Entrepreneurship," Ratio Working Papers 274, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0274
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    References listed on IDEAS

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    More about this item

    Keywords

    Immigrant entrepreneurship; entrepreneurial exit; family resources; social embeddedness; relational embeddedness;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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