IDEAS home Printed from https://ideas.repec.org/a/rrs/journl/v12y2018i1p18-42.html
   My bibliography  Save this article

The Impact Of Immigrant Entrepreneurship On Regional Development In Western Sweden

Author

Listed:
  • Daniel Rauhut

    (University of Eastern Finland, Karelian Institute)

  • Olga Rauhut Kompaniets

    (Dalarna University, Borlänge, Sweden)

Abstract

This paper discusses how immigrant entrepreneurship impacts regional development. Three towns in Western Sweden are analysed, using unique data on company start-ups at a local level. The findings suggest that immigrant entrepreneurs are overrepresented in the start-ups of labour intensive and low productive businesses in the service sector. Such entrepreneurship does not promote regional development, but it may get the entrepreneur out of the reliance on welfare schemes and meet their bills. Resultantly, the region appears to be caught in a vicious circle of underdevelopment, wherein companies started by immigrant entrepreneurs experience a limited market expansion, and this leads to low savings, low consumption, reduced stock of capital in the economy, and low income.This paper offers important insights on how theory and results that stem from an aggregate national level may differ when entrepreneurship is analysed at a local level. It concludes that what works well and promotes regional development in metropolitan areas may lead to completely different outcomes in smaller towns in decaying industrial regions.

Suggested Citation

  • Daniel Rauhut & Olga Rauhut Kompaniets, 2018. "The Impact Of Immigrant Entrepreneurship On Regional Development In Western Sweden," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 12(1), pages 18-42, June.
    • Handle: RePEc:rrs:journl:v:12:y:2018:i:1:p:18-42
    as

    Download full text from publisher

    File URL: http://rjrs.ase.ro/wp-content/uploads/2017/03/V121/V1212.Rauhut.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
    2. Pascal Beckers & Boris F. Blumberg, 2013. "Immigrant entrepreneurship on the move: a longitudinal analysis of first- and second-generation immigrant entrepreneurship in the Netherlands," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(7-8), pages 654-691, September.
    3. Hou, Feng & Lu, Yuqian & Abada, Teresa, 2012. "Choice or Necessity: Do Immigrants and Their Children Choose Self-employment for the Same Reasons?," Analytical Studies Branch Research Paper Series 2012342e, Statistics Canada, Analytical Studies Branch.
    4. Baycan, Tüzýn, 2013. "Turkish Entrepreneurship in Europe," European Review, Cambridge University Press, vol. 21(3), pages 382-393, July.
    5. Oded Stark, 1991. "The Migration of Labor," Blackwell Books, Wiley Blackwell, number 1557860300, April.
    6. Andrew Arbuthnott & Yvonne von Friedrichs, 2013. "Entrepreneurial renewal in a peripheral region: the case of a winter automotive-testing cluster in Sweden," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(5-6), pages 371-403, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sibel Ozasir Kacar, 2024. "Making, unmaking and remaking of context in entrepreneurial identity construction and experiences: a comparative analysis between Türkiye and the Netherlands," Small Business Economics, Springer, vol. 62(2), pages 629-648, February.
    2. Alan Barrett & Philip J. O’Connell, 2001. "Is There a Wage Premium for Returning Irish Migrants?," The Economic and Social Review, Economic and Social Studies, vol. 32(1), pages 1-21.
    3. Laila Touhami Morghem & Khawlah Ali Abdalla Spetan, 2020. "Determinants of International Migration: An Applied Study on Selected Arab Countries (1995-2017)," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 6-19.
    4. Jan Wiers & Didier Chabaud, 2022. "Bibliometric analysis of immigrant entrepreneurship research 2009–2019," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 441-464, December.
    5. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    6. Mohamed Amara & Hatem Jemmali, 2018. "Deciphering the Relationship Between Internal Migration and Regional Disparities in Tunisia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 313-331, January.
    7. Fidrmuc, Jan, 2001. "Migration and adjustment to shocks in transition economies," ZEI Working Papers B 23-2001, University of Bonn, ZEI - Center for European Integration Studies.
    8. Guy Stecklov & Calogero Carletto & Carlo Azzarri & Benjamin Davis, 2010. "Gender and migration from Albania," Demography, Springer;Population Association of America (PAA), vol. 47(4), pages 935-961, November.
    9. Xiushi Yang, 2000. "Determinants of Migration Intentions in Hubei Province, China: Individual versus Family Migration," Environment and Planning A, , vol. 32(5), pages 769-787, May.
    10. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants' Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    11. Michael Stuetzer & David B. Audretsch & Martin Obschonka & Samuel D. Gosling & Peter J. Rentfrow & Jeff Potter, 2018. "Entrepreneurship culture, knowledge spillovers and the growth of regions," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 608-618, May.
    12. Thomas Bauer & Mathias Sinning, 2011. "The savings behavior of temporary and permanent migrants in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 421-449, April.
    13. Ratan J. S. Dheer & Aycan Kara, 2024. "Immigrants’ entrepreneurial intentions: acculturation-based socio-psychological lens," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2979-2999, December.
    14. Driouchi, Ahmed & Zouag, Nada, 2010. "Internal Mobility and Likelihood of Skill Losses in Localities of Emigration: Theory and Preliminary Empirical Application to Some Developing Economies," MPRA Paper 21799, University Library of Munich, Germany, revised 01 Apr 2010.
    15. Seksiri Niwattisaiwong & Komsan Suriya, 2018. "Margin of luck and value of information in lottery purchases in Thailand," RAIS Journal for Social Sciences, Research Association for Interdisciplinary Studies, vol. 2(2), pages 1-11, December.
    16. de Arce, Rafael & Mahia, Ramon, 2008. "Determinants of Bilateral Immigration Flows Between The European Union and some Mediterranean Partner Countries: Algeria, Egypt, Morocco, Tunisia and Turkey," MPRA Paper 14547, University Library of Munich, Germany.
    17. Robert E.B. Lucas, 2007. "Migration and rural development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 4(1), pages 99-122.
    18. Arbia, Giuseppe & Espa, Giuseppe & Giuliani, Diego & Dickson, Maria Michela, 2014. "Spatio-temporal clustering in the pharmaceutical and medical device manufacturing industry: A geographical micro-level analysis," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 298-304.
    19. Baum, Christopher F & Dastory, Linda & Lööf, Hans & Stephan, Andreas, 2018. "Migrant STEM Entrepreneurs," Working Paper Series in Economics and Institutions of Innovation 474, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    20. Kay, Rosemarie & Kranzusch, Peter & Nielen, Sebastian, 2022. "Auswirkungen der Corona-Pandemie auf das gewerbliche Gründungsgeschehen 2020: Eine regionale Analyse," Daten und Fakten 29, Institut für Mittelstandsforschung (IfM) Bonn.

    More about this item

    Keywords

    entrepreneurship; immigrants; unemployment; labour market; regional development;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rrs:journl:v:12:y:2018:i:1:p:18-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bogdan-Vasile Ileanu (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.