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The impact of ethnic communities on immigrant entrepreneurship: evidence from Sweden

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  • Sam Tavassoli
  • Michaela Trippl

Abstract

This paper seeks to provide novel insights into the effects of ethnic communities on immigrants’ entrepreneurial activities. We investigate to what extent the decision of an employed immigrant to become an entrepreneur is associated with his or her embeddedness in ethnic networks in the host region. We capture such embeddedness through various mechanisms. Using longitudinal-registered data from Sweden and employing a logit model, we find that merely being located in an ethnic community does not have an influence on immigrant entrepreneurship; rather, what matters is being located in ethnic communities that have a high share of entrepreneurs themselves.

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  • Sam Tavassoli & Michaela Trippl, 2019. "The impact of ethnic communities on immigrant entrepreneurship: evidence from Sweden," Regional Studies, Taylor & Francis Journals, vol. 53(1), pages 67-79, January.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:1:p:67-79
    DOI: 10.1080/00343404.2017.1395007
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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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