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==Diaspora and networks==
==Diaspora and networks==
Research has identified diaspora communities as an important context for immigrant entrepreneurship. Business formation within diasporas is often shaped by co-ethnic networks, pooled resources, shared language, and trust-based relationships.<ref name="MinBozorgmehr2000"/><ref name="Salehi2026"/>
Research has identified diaspora communities as an important context for immigrant entrepreneurship. Diaspora members often function as economic intermediaries, bridging home and host country networks and facilitating international trade and investment through shared language, cultural knowledge, and transnational ties.<ref>{{cite techreport | last1=Fang | first1=Tony | last2=Wells | first2=Alex | title=Diaspora Economics | year=2022 | jstor=resrep64639 | url=http://www.jstor.org/stable/resrep64639 | access-date=2026-05-28}}</ref> Business formation within diasporas is often shaped by co-ethnic networks, pooled resources, and trust-based relationships, with patterns varying across groups and regions.<ref name="MinBozorgmehr2000"/><ref name="Salehi2026"/>
   
   
Patterns vary across groups and regions, reflecting differences in migration history, legal status, and access to resources.<ref name="OECD2024"/> Studies have documented how transnational and community-based networks support business development and facilitate participation in both local and international markets, with research spanning communities in East and Southeast Asia, the Americas, West Africa, and Europe.<ref name="Eckstein2018"/><ref name="MinBozorgmehr2000"/>
Studies have documented distinctive entrepreneurial patterns across several communities. Chinese diaspora entrepreneurs have been associated with the development of large business conglomerates in Southeast Asia and small business networks in North America and Australasia, supported by transnational family ties.<ref name="Eckstein2018"/> Korean and Iranian immigrants in the United States have been studied comparatively, with Korean entrepreneurs drawing more heavily on co-ethnic resources such as rotating credit associations, while Iranian entrepreneurs more often rely on individual professional experience and education.<ref name="MinBozorgmehr2000"/> Cuban immigrants, particularly in Miami, have developed co-ethnic business networks supported by bilingual capabilities and transnational ties to Latin America.<ref name="Portes2015">{{cite journal | last1=Portes | first1=Alejandro | last2=Puhrmann | first2=Aaron | title=A Bifurcated Enclave: The Economic Evolution of the Cuban and Cuban American Population of Metropolitan Miami | journal=Cuban Studies | publisher=University of Pittsburgh Press | issue=43 | year=2015 | issn=03614441 | jstor=24487270 | pages=40–63 | url=http://www.jstor.org/stable/24487270 | access-date=2026-05-17}}</ref> Lebanese traders have maintained commercial networks across West Africa and Latin America since the late 19th century,<ref name="OBrien1975">{{cite journal | last=O'Brien | first=Rita Cruise | title=Lebanese Entrepreneurs in Senegal: Economic Integration and the Politics of Protection | journal=Cahiers d'Études Africaines | publisher=EHESS | volume=15 | issue=57 | year=1975 | issn=00080055 | jstor=4391369 | pages=95–115 | url=http://www.jstor.org/stable/4391369 | access-date=2026-05-17}}</ref> and Hispanic and Latino immigrant entrepreneurship in the United States varies by national origin, educational attainment, and access to capital.<ref name="Fairlie2015"/>


==Economic outcomes==
==Economic outcomes==

Revision as of 12:07, 28 May 2026

Template:Short description

Immigrant entrepreneurship refers to the founding or ownership of businesses by individuals who have migrated to a country other than their country of birth. It has been documented across a wide range of economies and historical periods, and is studied as a component of labour market integration, economic development, and innovation.

Research has found that immigrants in several countries, including the United States, United Kingdom, Canada, and Australia, establish businesses at higher rates than native-born populations.[1] Across OECD countries, migrant entrepreneurs account for a growing share of the self-employed population and have contributed to employment growth.[2] Scholars have identified several factors associated with immigrant entrepreneurship, including the role of co-ethnic networks, access to transnational resources, and barriers in conventional labour markets.[3]

Examples of immigrant entrepreneurs include Andrew Carnegie, a Scottish-born industrialist in the United States;[4] Jensen Huang, a Taiwan-born co-founder of NVIDIA;[5] Emilio Estefan, a Cuban-born music producer and record executive;[6] and Helena Rubinstein, born in what is now Poland, who established an international cosmetics business.[7]

Patterns and prevalence

Studies consistently find higher rates of business formation among immigrants in many developed economies.[1] Across OECD countries, the Organisation for Economic Co-operation and Development's International Migration Outlook 2024 reports that migrant entrepreneurs accounted for approximately 17% of the self-employed population in 2022, up from 11% in 2006, and contributed around 15% of employment growth between 2011 and 2021.[2]

In the United States, immigrants have represented a growing share of business owners and new founders over time, and have been estimated to start businesses at higher rates than the native-born population.[1][3] A 2024 report found that approximately 46% of Fortune 500 companies were founded by immigrants or their children.[8]

Patterns vary across countries and groups, reflecting differences in immigration policy, labour market conditions, and access to capital.[2]

Frameworks

Several theoretical frameworks have been developed to explain patterns of immigrant entrepreneurship. Ethnic enclave economy theory describes spatially concentrated clusters of co-ethnic businesses that provide employment and economic opportunity within immigrant communities.[9] Middleman minority theory describes entrepreneurs who occupy niche market positions serving as intermediaries between dominant and subordinate groups, often with limited ties to co-ethnic social structures.[10] Mixed embeddedness theory emphasises that immigrant entrepreneurs are shaped by both the resources of their ethnic community and the opportunity structures of the host-country economy, including labour markets, regulations, and access to capital.[11]

Contributing factors

Several factors have been identified as shaping immigrant entrepreneurship. The "blocked mobility" hypothesis proposes that barriers to employment, including non-recognition of foreign qualifications, language barriers, and labour market discrimination, may lead some immigrants to enter self-employment as an alternative pathway.[12] Co-ethnic networks and social capital can reduce barriers to business formation by providing access to labour, informal credit, and information.[10][13] Human capital, including education, skills, and prior business experience, contributes to variation in outcomes across immigrant groups.[3] Transnational connections allow entrepreneurs to access markets, labour, and knowledge across borders.[14]

Sectoral distribution

Immigrant entrepreneurship is distributed across a wide range of industries, with concentrations in both high-growth sectors, such as technology and finance, and in lower-barrier sectors including retail, personal services, and food service.[1][3]

In technology, immigrant founders have been associated with higher rates of innovation and are well represented among founders of venture capital-backed firms.[15] Notable examples include Sergey Brin, co-founder of Google; Steve Chen, co-founder of YouTube; and Jan Koum, co-founder of WhatsApp.[16] In media and entertainment, immigrant entrepreneurs were involved in founding major Hollywood studios and record labels, including Atlantic Records, co-founded by Istanbul-born Ahmet Ertegun.[1]

In retail, food service, and personal services, a substantial share of immigrant entrepreneurship occurs in sectors with relatively low barriers to entry, where self-employment may provide an alternative to wage labour.[14][3]

Diaspora and networks

Research has identified diaspora communities as an important context for immigrant entrepreneurship. Diaspora members often function as economic intermediaries, bridging home and host country networks and facilitating international trade and investment through shared language, cultural knowledge, and transnational ties.[17] Business formation within diasporas is often shaped by co-ethnic networks, pooled resources, and trust-based relationships, with patterns varying across groups and regions.[10][11]

Studies have documented distinctive entrepreneurial patterns across several communities. Chinese diaspora entrepreneurs have been associated with the development of large business conglomerates in Southeast Asia and small business networks in North America and Australasia, supported by transnational family ties.[14] Korean and Iranian immigrants in the United States have been studied comparatively, with Korean entrepreneurs drawing more heavily on co-ethnic resources such as rotating credit associations, while Iranian entrepreneurs more often rely on individual professional experience and education.[10] Cuban immigrants, particularly in Miami, have developed co-ethnic business networks supported by bilingual capabilities and transnational ties to Latin America.[18] Lebanese traders have maintained commercial networks across West Africa and Latin America since the late 19th century,[19] and Hispanic and Latino immigrant entrepreneurship in the United States varies by national origin, educational attainment, and access to capital.[3]

Economic outcomes

Findings on the performance of immigrant-founded businesses are mixed. Some studies report higher rates of employment growth and firm dynamism, alongside higher rates of entry and exit.[1] Other research finds no consistent advantage in long-term survival or payroll growth, suggesting outcomes vary by sector and firm type.[1]

Immigrant-owned firms have been found to participate in international trade at higher rates than native-owned firms, a pattern associated with transnational ties and knowledge of foreign markets.[3] In high-technology sectors, research has identified higher levels of innovation among immigrant-founded firms.[15]

Outcomes also vary by skill level. Entrepreneurship may yield higher returns for highly skilled immigrants, while for others it may function primarily as an alternative to wage employment.[20]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Kerr, Sari Pekkala; Kerr, William R. (2016). "Immigrant Entrepreneurship". NBER Working Paper (17-011). https://www.hbs.edu/ris/Publication%20Files/17-011_da2c1cf4-a999-4159-ab95-457c783e3fff.pdf. 
  2. ↑ 2.0 2.1 2.2 "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. 
  3. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 Fairlie, Robert W.; Lofstrom, Magnus (2015). "Immigration and Entrepreneurship". Handbook of the Economics of International Migration. 1B. Elsevier. pp. 877-911. https://people.ucsc.edu/~rfairlie/papers/published/handbook%20chapter%20immigrant%20entrepreneurship%202015.pdf. 
  4. ↑ Gould, Sam (1995). "Andrew Carnegie: Scottish Immigrant, Entrepreneur, Philanthropist". University of Dayton Review 23 (3). https://ecommons.udayton.edu/udr/vol23/iss3/5. 
  5. ↑ Template:Cite encyclopedia
  6. ↑ Template:Cite encyclopedia
  7. ↑ Template:Cite encyclopedia
  8. ↑ "Fortune 500 Companies Founded by Immigrants [2024"]. 2025-11-12. https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/. 
  9. ↑ 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. 
  10. ↑ 10.0 10.1 10.2 10.3 Cite error: Invalid <ref> tag; no text was provided for refs named MinBozorgmehr2000
  11. ↑ 11.0 11.1 Cite error: Invalid <ref> tag; no text was provided for refs named Salehi2026
  12. ↑ Raijman, Rebeca; Tienda, Marta (2000). "Immigrants' Pathways to Business Ownership: A Comparative Ethnic Perspective". International Migration Review 34 (3): 682. doi:10.2307/2675941. https://www.jstor.org/stable/2675941?origin=crossref. Retrieved on 2026-05-17. 
  13. ↑ Martén, Linna; Hainmueller, Jens; Hangartner, Dominik (2019). "Ethnic networks can foster the economic integration of refugees". Proceedings of the National Academy of Sciences 116 (33): 16280–16285. doi:10.1073/pnas.1820345116. 
  14. ↑ 14.0 14.1 14.2 Eckstein, Susan; Peri, Giovanni (2018). "Immigrant Niches and Immigrant Networks in the U.S. Labor Market". RSF: The Russell Sage Foundation Journal of the Social Sciences 4 (1): 1–17. doi:10.7758/RSF.2018.4.1.01. ISSN 2377-8253. http://www.rsfjournal.org/lookup/doi/10.7758/RSF.2018.4.1.01. Retrieved on 2026-05-17. 
  15. ↑ 15.0 15.1 Template:Cite report
  16. ↑ Greenstein, Shane M. (2015-12-21). "Without Immigrants, We Wouldn't Have Google". https://www.library.hbs.edu/working-knowledge/without-immigrants-we-wouldn-t-have-google. 
  17. ↑ Template:Cite techreport
  18. ↑ Portes, Alejandro; Puhrmann, Aaron (2015). "A Bifurcated Enclave: The Economic Evolution of the Cuban and Cuban American Population of Metropolitan Miami". Cuban Studies (University of Pittsburgh Press) (43): 40–63. ISSN 03614441. http://www.jstor.org/stable/24487270. Retrieved on 2026-05-17. 
  19. ↑ O'Brien, Rita Cruise (1975). "Lebanese Entrepreneurs in Senegal: Economic Integration and the Politics of Protection". Cahiers d'Études Africaines (EHESS) 15 (57): 95–115. ISSN 00080055. http://www.jstor.org/stable/4391369. Retrieved on 2026-05-17. 
  20. ↑ Lofstrom, Magnus (2009). "Low-Skilled Immigrant Entrepreneurship". IZA Discussion Paper (4560). https://docs.iza.org/dp4560.pdf. 
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