Jump to content

Immigrant entrepreneurship: Difference between revisions

From IdeaWazaWiki
← Older edit

Idea (talk | contribs)

3 user groups
502 edits
→Indian diaspora: Indian Diaspora
No edit summary
 
(302 intermediate revisions by 12 users not shown)
Line 1: Line 1:
{{User sandbox}}
'''Immigrant entrepreneurship''' is the founding and ownership of businesses by individuals who have relocated from their country of birth to another country. The concept encompasses a range of entrepreneurial activity, from self-employment and small businesses to the creation of larger firms and technology companies.<ref name="Berghoff2017">{{cite encyclopedia |last=Berghoff |first=Hartmut |title=Immigrant Entrepreneurship: A Typology Based on Historical and Contemporary Evidence |encyclopedia=Oxford Research Encyclopedia of Business and Management |publisher=Oxford University Press |date=2017 |doi=10.1093/acrefore/9780190224851.013.270 |url=https://academic.oup.com/edited-volume/61793/chapter/545971848}}</ref> Research in the field examines factors including access to capital and networks, motivations for business formation, economic outcomes, and the relationship between migration and entrepreneurship.<ref name="Fairlie2015">{{cite book | last1=Fairlie | first1=Robert W. | last2=Lofstrom | first2=Magnus | title=Handbook of the Economics of International Migration | chapter=Immigration and Entrepreneurship | publisher=Elsevier | volume=1 | date=2015 | isbn=978-0-444-63372-9 | doi=10.1016/b978-0-444-53768-3.00017-5 | url=https://linkinghub.elsevier.com/retrieve/pii/B9780444537683000175 | access-date=2026-08-11 | pages=877–911}}</ref> It is an established subject of research in economics, sociology, business, and related fields.<ref name="Kerr2016">{{cite report | last1=Kerr | first1=Sari Pekkala | last2=Kerr | first2=William | title=Immigrant Entrepreneurship | publication-place=Cambridge, MA | date=2016 | doi=10.3386/w22385 | url=http://www.nber.org/papers/w22385.pdf | access-date=2026-08-11}}</ref>
<!-- EDIT BELOW THIS LINE -->
'''Immigrant entrepreneurship''' refers to the founding or ownership of businesses by individuals who have immigrated to a country other than their country of birth. Notable examples include [[Andrew Carnegie]],<ref>{{cite journal |last=Gould |first=Sam |title=Andrew Carnegie: Scottish Immigrant, Entrepreneur, Philanthropist |journal=University of Dayton Review |volume=23 |issue=3 |year=1995 |url=https://ecommons.udayton.edu/udr/vol23/iss3/5}}</ref> [[Alexander Graham Bell]],<ref>{{cite web |title=Alexander Graham Bell (1847–1922) |url=https://www.bbc.co.uk/history/historic_figures/bell_alexander_graham.shtml |website=BBC History |publisher=BBC |access-date=21 March 2026}}</ref> and [[Elon Musk]]<ref>{{cite news |last=Sommerlad |first=Joe |title=Elon Musk, who arrived in the U.S. at age 31, is being questioned on his citizenship again. What to know |url=https://www.independent.co.uk/news/world/americas/us-politics/elon-musk-citizenship-us-south-africa-canada-b2693635.html |work=The Independent |date=6 February 2025 |access-date=21 March 2026}}</ref> in the United States; [[Paul Julius Reuter]], who built his news agency in Britain; and [[James de Rothschild]], the Frankfurt-born banker who founded the French branch of the Rothschild dynasty.


==Patterns and prevalence==
==Definition and scope==
Immigrants start businesses at higher rates than native-born populations in many developed countries including the United States, United Kingdom, Canada, and Australia.<ref name="Kerr2016">{{cite journal |last=Kerr |first=Sari Pekkala |last2=Kerr |first2=William R. |title=Immigrant Entrepreneurship |journal=NBER Working Paper |number=17-011 |year=2016 |url=https://www.hbs.edu/ris/Publication%20Files/17-011_da2c1cf4-a999-4159-ab95-457c783e3fff.pdf}}</ref> In the United States, the foreign-born share of business owners more than doubled between 1980 and 2010,<ref>Lofstrom, Magnus.
Immigrant entrepreneurs operate across industries, populations, and host countries, and vary in both their backgrounds and business activities. They are studied as a distinct group because of the interrelationship between migration and access to resources, professional networks, markets, and employment opportunities.<ref name="Berghoff2017"/> The scale of this activity is reflected in OECD's ''International Migration Outlook 2024'' which reported that migrant entrepreneurs accounted for approximately 17% of the self-employed population across OECD countries in 2022, up from 11% in 2006.<ref name="OECD2024">{{cite web | title=Migrant entrepreneurship in OECD countries: International Migration Outlook 2024 | website=OECD | date=2024-11-14 | url=https://www.oecd.org/en/publications/international-migration-outlook-2024_50b0353e-en/full-report/migrant-entrepreneurship-in-oecd-countries_72f44494.html | access-date=2026-08-11}}</ref>
[https://wol.iza.org/articles/immigrants-and-entrepreneurship/long
"Immigrants and Entrepreneurship"]. ''IZA World of Labor''. 2019.</ref> while immigrant entrepreneurs accounted for approximately 24% of new business founders between 1995 and 2008, with that share rising from 17% in 1995 to 27% in 2008.<ref name="Kerr2016" /> By around 2010, immigrants represented approximately 18.2% of all United States business owners despite comprising 16.3% of the workforce, and started businesses at roughly double the rate of the native-born population.<ref name="Fairlie2015">{{cite book |last=Fairlie |first=Robert W. |last2=Lofstrom |first2=Magnus |chapter=Immigration and Entrepreneurship |title=Handbook of the Economics of International Migration |volume=1B |publisher=Elsevier |year=2015 |pages=877-911 |url=https://people.ucsc.edu/~rfairlie/papers/published/handbook%20chapter%20immigrant%20entrepreneurship%202015.pdf}}</ref>


==Entrepreneurship by sector==
==Frameworks==
===Technology===
Several theoretical frameworks have been developed to explain patterns of immigrant entrepreneurship. [[Ethnic enclave|Ethnic enclave economy]] theory describes concentrated clusters of co-ethnic businesses that provide employment and economic opportunity within immigrant communities.<ref>{{cite journal | last1=Light | first1=Ivan | last2=Sabagh | first2=Georges | last3=Bozorgmehr | first3=Mehdi | last4=Der-Martirosian | first4=Claudia | title=Beyond the Ethnic Enclave Economy | journal=Social Problems | volume=41 | issue=1 | date=1994 | doi=10.2307/3096842 | pages=65–80 | url=https://academic.oup.com/socpro/article-lookup/doi/10.2307/3096842 | access-date=2026-08-11}}</ref> [[Middleman minority]] theory describes entrepreneurs who serve as intermediaries between dominant and subordinate groups.<ref name="MinBozorgmehr2000">{{cite journal | last1=Min | first1=Pyong Gap | last2=Bozorgmehr | first2=Mehdi | title=Immigrant Entrepreneurship and Business Patterns: A Comparison of Koreans and Iranians in Los Angeles | journal=International Migration Review | volume=34 | issue=3 | date=2000 | doi=10.2307/2675942 | page=707 | url=https://www.jstor.org/stable/2675942?origin=crossref | access-date=2026-05-17}}</ref> Mixed embeddedness theory proposes that outcomes are shaped by both the resources of the immigrant community and the opportunity structures of the host economy.<ref name="Salehi2026">{{cite journal | last=Salehi | first=Ali | title=Understanding the Nature of Ethnic Entrepreneurship: A Systematic Literature Review | journal=Journal of Ethnic and Cultural Studies | volume=13 | issue=1 | date=2026-02-02 | issn=2149-1291 | doi=10.29333/ejecs/2252 | pages=276–308 | url=https://www.ejecs.org/index.php/JECS/article/view/2252 | access-date=2026-08-11}}</ref> The blocked mobility hypothesis claims that barriers to employment, including non-recognition of qualifications and labour market discrimination, may push some immigrants toward self-employment.<ref name="Fairlie2015"/>
Immigrant founders have played a prominent role in the technology industry. A disproportionate share of United States technology companies founded between 1995 and 2005 had at least one immigrant co-founder.<ref>{{citation needed}}</ref> Among venture capital-backed firms in the United States specifically, immigrants constituted approximately 30% of founders in 2005, modestly exceeding their overall share of entrepreneurial activity.<ref name="Kerr2016" />


===Finance and banking===
==Economic Contributions==
Immigrant entrepreneurs have historically been significant in banking and financial services, including the establishment of several major European banking dynasties in the 18th and 19th centuries.<ref>{{citation needed}}</ref>
Businesses founded by immigrants have been shown to contribute to employment growth, innovation, and international trade in their host economies. They establish businesses at higher rates than native-born populations across many developed economies,<ref name="Kerr2016"/> and a 2024 report found that approximately 46% of Fortune 500 companies were founded by immigrants or their children.<ref name="AIC2024">{{cite web | title=Fortune 500 Companies Founded by Immigrants [2024] | website=American Immigration Council | date=2026-06-17 | url=https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/ | access-date=2026-08-11}}</ref> In high-technology sectors, immigrant-founded firms show higher rates of patenting, research activity, and product development.<ref name="Brown2019">{{cite report | last1=Brown | first1=J. David | last2=Earle | first2=John | last3=Kim | first3=Mee Jung | last4=Lee | first4=Kyung Min | title=Immigrant Entrepreneurs and Innovation in the U.S. High-Tech Sector | publication-place=Cambridge, MA | date=2019 | doi=10.3386/w25565 | url=http://www.nber.org/papers/w25565.pdf | access-date=2026-08-11}}</ref> Immigrant-owned firms also participate in international trade at higher rates than native-owned firms, a pattern associated with transnational networks and knowledge of foreign markets.<ref name="Fairlie2015"/> Self-employment whiich common to immigrants, can also serve as a pathway to economic integration, with earnings among self-employed immigrants tending to converge toward those of native-born entrepreneurs over time.<ref name="Fairlie2015"/>
===Media and entertainment===
Immigrants and their descendants have founded major media companies and contributed significantly to the entertainment industries of their adopted countries.<ref>{{citation needed}}</ref>


===Retail and food===
==Diaspora and networks==
Immigrant-owned businesses are heavily represented in retail, hospitality, and food services across most developed economies.<ref>{{citation needed}}</ref>
Diaspora communities provide an important organisational and networking context for immigrant entrepreneurship. Members often function as economic intermediaries, bridging home and host country networks through shared language, cultural knowledge, and transnational ties.<ref>{{cite book | last1=Fang | first1=Tony | last2=Wells | first2=Alex | title=Handbook of Labor, Human Resources and Population Economics | chapter=Diaspora Economics | publisher=Springer International Publishing | publication-place=Cham | date=2023 | isbn=978-3-319-57365-6 | doi=10.1007/978-3-319-57365-6_105-1 | url=https://link.springer.com/10.1007/978-3-319-57365-6_105-1 | access-date=2026-08-11 | pages=1–23}}</ref> Co-ethnic networks can provide access to information, resources, customers, and business relationships, while shared trust and social ties can facilitate business formation..<ref name="MinBozorgmehr2000"/><ref name="Salehi2026"/>
==Entrepreneurship by diaspora==
Several diaspora communities have demonstrated sustained rates of business creation across thier host countries. This pattern is frequently attributed to co-ethnic networks, pooled capital, and trust-based commercial relationships that lower barriers to market entry.
===Chinese diaspora===
Substantial commercial presence has been documented across Southeast Asia, North America, and Australasia.
===Indian diaspora===
Activity is concentrated in technology, retail, and financial services, particularly in the United States and United Kingdom.
* '''Lebanese diaspora''' - Notable entrepreneurial activity across West Africa, Latin America, and the Americas more broadly.
* '''Jewish diaspora''' - Long-standing involvement in finance, media, and retail across Europe and North America.
* '''Hispanic diaspora''' - Significant entrepreneurial presence in the United States, particularly in construction, food services, retail, and entertainment, with growing representation in technology and professional services.


==Host country policies==
==See also==
Many developed countries have introduced special visa programs to attract immigrant entrepreneurs, though the effectiveness of such programs remains an active area of research.
* [[Minority business enterprise]]
* [[Entrepreneurship]]


==Academic perspectives==
==References==
Self-employment has been identified in the academic literature as a significant pathway for labour market integration among immigrant populations. Research indicates, however, that entrepreneurship yields stronger economic outcomes for high-skilled immigrants than for those with lower levels of formal qualification. Studies based on United States data suggest that immigrant-founded businesses tend to show greater employment growth over the medium term compared to native-founded businesses, though without a corresponding advantage in payroll growth, and with higher rates of both failure and expansion relative to native-founded firms.<ref name="Kerr2016" />
{{Reflist}}
 
{{DEFAULTSORT:Immigrant entrepreneurship}}
[[Category:Entrepreneurship]]
[[Category:Immigration]]
[[Category:Diasporas]]
[[Category:Economic sociology]]
[[Category:Labour economics]]

Latest revision as of 05:10, 29 September 2026

Immigrant entrepreneurship is the founding and ownership of businesses by individuals who have relocated from their country of birth to another country. The concept encompasses a range of entrepreneurial activity, from self-employment and small businesses to the creation of larger firms and technology companies.[1] Research in the field examines factors including access to capital and networks, motivations for business formation, economic outcomes, and the relationship between migration and entrepreneurship.[2] It is an established subject of research in economics, sociology, business, and related fields.[3]

Definition and scope

Immigrant entrepreneurs operate across industries, populations, and host countries, and vary in both their backgrounds and business activities. They are studied as a distinct group because of the interrelationship between migration and access to resources, professional networks, markets, and employment opportunities.[1] The scale of this activity is reflected in OECD's International Migration Outlook 2024 which reported that migrant entrepreneurs accounted for approximately 17% of the self-employed population across OECD countries in 2022, up from 11% in 2006.[4]

Frameworks

Several theoretical frameworks have been developed to explain patterns of immigrant entrepreneurship. Ethnic enclave economy theory describes concentrated clusters of co-ethnic businesses that provide employment and economic opportunity within immigrant communities.[5] Middleman minority theory describes entrepreneurs who serve as intermediaries between dominant and subordinate groups.[6] Mixed embeddedness theory proposes that outcomes are shaped by both the resources of the immigrant community and the opportunity structures of the host economy.[7] The blocked mobility hypothesis claims that barriers to employment, including non-recognition of qualifications and labour market discrimination, may push some immigrants toward self-employment.[2]

Economic Contributions

Businesses founded by immigrants have been shown to contribute to employment growth, innovation, and international trade in their host economies. They establish businesses at higher rates than native-born populations across many developed economies,[3] and a 2024 report found that approximately 46% of Fortune 500 companies were founded by immigrants or their children.[8] In high-technology sectors, immigrant-founded firms show higher rates of patenting, research activity, and product development.[9] Immigrant-owned firms also participate in international trade at higher rates than native-owned firms, a pattern associated with transnational networks and knowledge of foreign markets.[2] Self-employment whiich common to immigrants, can also serve as a pathway to economic integration, with earnings among self-employed immigrants tending to converge toward those of native-born entrepreneurs over time.[2]

Diaspora and networks

Diaspora communities provide an important organisational and networking context for immigrant entrepreneurship. Members often function as economic intermediaries, bridging home and host country networks through shared language, cultural knowledge, and transnational ties.[10] Co-ethnic networks can provide access to information, resources, customers, and business relationships, while shared trust and social ties can facilitate business formation..[6][7]

See also

References

  1. ↑ 1.0 1.1 Template:Cite encyclopedia
  2. ↑ 2.0 2.1 2.2 2.3 Fairlie, Robert W.; Lofstrom, Magnus (2015). "Immigration and Entrepreneurship". Handbook of the Economics of International Migration. 1. Elsevier. pp. 877–911. doi:10.1016/b978-0-444-53768-3.00017-5. ISBN 978-0-444-63372-9. https://linkinghub.elsevier.com/retrieve/pii/B9780444537683000175. Retrieved on 2026-08-11. 
  3. ↑ 3.0 3.1 Template:Cite report
  4. ↑ "Migrant entrepreneurship in OECD countries: International Migration Outlook 2024". 2024-11-14. https://www.oecd.org/en/publications/international-migration-outlook-2024_50b0353e-en/full-report/migrant-entrepreneurship-in-oecd-countries_72f44494.html. 
  5. ↑ Light, Ivan; Sabagh, Georges; Bozorgmehr, Mehdi; Der-Martirosian, Claudia (1994). "Beyond the Ethnic Enclave Economy". Social Problems 41 (1): 65–80. doi:10.2307/3096842. https://academic.oup.com/socpro/article-lookup/doi/10.2307/3096842. Retrieved on 2026-08-11. 
  6. ↑ 6.0 6.1 Min, Pyong Gap; Bozorgmehr, Mehdi (2000). "Immigrant Entrepreneurship and Business Patterns: A Comparison of Koreans and Iranians in Los Angeles". International Migration Review 34 (3): 707. doi:10.2307/2675942. https://www.jstor.org/stable/2675942?origin=crossref. Retrieved on 2026-05-17. 
  7. ↑ 7.0 7.1 Salehi, Ali (2026-02-02). "Understanding the Nature of Ethnic Entrepreneurship: A Systematic Literature Review". Journal of Ethnic and Cultural Studies 13 (1): 276–308. doi:10.29333/ejecs/2252. ISSN 2149-1291. https://www.ejecs.org/index.php/JECS/article/view/2252. Retrieved on 2026-08-11. 
  8. ↑ "Fortune 500 Companies Founded by Immigrants [2024"]. 2026-06-17. https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/. 
  9. ↑ Template:Cite report
  10. ↑ Fang, Tony; Wells, Alex (2023). "Diaspora Economics". Handbook of Labor, Human Resources and Population Economics. Cham: Springer International Publishing. pp. 1–23. doi:10.1007/978-3-319-57365-6_105-1. ISBN 978-3-319-57365-6. https://link.springer.com/10.1007/978-3-319-57365-6_105-1. Retrieved on 2026-08-11. 
Retrieved from "https://ideawaza.com/index.php?title=Immigrant_entrepreneurship&oldid=71834"