Immigrant entrepreneurship
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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 have been identified 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.[10] Business formation within diasporas is often shaped by co-ethnic networks, pooled resources, and trust-based relationships, with patterns varying across groups and regions.[6][7]
Several 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 which were also supported by transnational family ties.[11] 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.[6] Cuban immigrants, particularly in Miami, have developed co-ethnic business networks supported by bilingual capabilities and transnational ties to Latin America.[12] Lebanese traders have maintained commercial networks across West Africa and Latin America since the late 19th century,[13] and Hispanic and Latino immigrant entrepreneurship in the United States varies by national origin, educational attainment, and access to capital.[2]
See also
References
- ↑ 1.0 1.1 Template:Cite encyclopedia
- ↑ 2.0 2.1 2.2 2.3 2.4 Fairlie, Robert W.; Lofstrom, Magnus (2015). "Immigration and Entrepreneurship". Handbook of the Economics of International Migration. 1. Elsevier. pp. 877–911. doi:. ISBN 978-0-444-63372-9. https://linkinghub.elsevier.com/retrieve/pii/B9780444537683000175. Retrieved on 2026-08-11.
- ↑ 3.0 3.1 Template:Cite report
- ↑ "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.
- ↑ Light, Ivan; Sabagh, Georges; Bozorgmehr, Mehdi; Der-Martirosian, Claudia (1994). "Beyond the Ethnic Enclave Economy". Social Problems 41 (1): 65–80. doi:. https://academic.oup.com/socpro/article-lookup/doi/10.2307/3096842. Retrieved on 2026-08-11.
- ↑ 6.0 6.1 6.2 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:. https://www.jstor.org/stable/2675942?origin=crossref. Retrieved on 2026-05-17.
- ↑ 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:. ISSN 2149-1291. https://www.ejecs.org/index.php/JECS/article/view/2252. Retrieved on 2026-08-11.
- ↑ "Fortune 500 Companies Founded by Immigrants [2024"]. 2026-06-17. https://www.americanimmigrationcouncil.org/report/new-american-fortune-500-2024/.
- ↑ Template:Cite report
- ↑ Fang, Tony; Wells, Alex (2023). "Diaspora Economics". Handbook of Labor, Human Resources and Population Economics. Cham: Springer International Publishing. pp. 1–23. doi:. ISBN 978-3-319-57365-6.
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedEckstein2018 - ↑ 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 0361-4441. http://www.jstor.org/stable/24487270. Retrieved on 2026-05-17.
- ↑ Cruise O'Brien, Rita (1975). "Lebanese Entrepreneurs in Senegal: Economic Integration and the Politics of Protection" (in fr). Cahiers d'études africaines 15 (57): 95–115. doi:. ISSN 0008-0055. https://www.persee.fr/doc/cea_0008-0055_1975_num_15_57_2612. Retrieved on 2026-08-11.