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CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University

No 2017/17:
The Impact of Ethnic Communities on Immigrant Entrepreneurship: Evidence from Sweden

Sam Tavassoli () and 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.

Keywords: Immigrants; entrepreneurship; ethnic communities; embeddedness; social capital; (follow links to similar papers)

JEL-Codes: D83; J61; M13; (follow links to similar papers)

35 pages, October 12, 2017

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