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The theory of small business finance predicts that ethnic minority‐owned businesses are more likely to be credit constrained in the start‐up process than are native‐owned businesses. In Germany, empirical evidence for this issue is scarce because of missing data. This paper aims to address these issues.

The paper reviews previous studies and uses data from a survey of ethnic and native entrepreneurs in Germany that include detailed information about start‐up financing. The hypotheses were tested for differences in financial constraints using univariate analyses and apply multivariate regression models to identify the causes of credit constraints in start‐up financing.

The data provide evidence that entrepreneurs with an immigration background (“ethnic entrepreneurs”), defined as German residents who hold foreign citizenship or who were born outside Germany, are significantly more likely to be denied credit or to be awarded smaller loans than requested than are native entrepreneurs. However, the underlying reasons for this effect may be differences in risk factors and financial relationships, rather than ethnicity.

The dataset consists of 234 observations. The results refer to the sample and might not be representative of ethnic minority start‐ups in general.

Apart from the risk factors observed in the study, communication problems and lack of information about possible sources of external financing may be relevant. Better communications between financial institutions and ethnic minority businesses may help to reduce the financing gap vis‐à‐vis native entrepreneurs.

This is the first examination of the financial constraints of ethnic entrepreneurship in Germany using univariate and multivariate analyses. Previous evidence has been limited to observations about possible discrimination against ethnic minorities and has not tested the significance of observed differences in access to credit.

This study investigates the differential likelihood of being an entrepreneur among immigrants to and natives of a country. Using a mixed embeddedness perspective, the authors outline how economic, sociocultural, and institutional embeddedness influence the likelihood of entrepreneurial activity exhibited by immigrant and native residents.

The tests of the hypotheses rely on a multilevel cross-country research design that uses secondary data from different sources.

Compared with their native counterparts, immigrants are more likely to start and run their own businesses, and an array of environmental factors influences this likelihood. The level of economic development and equality laws increase it; the abundance of market opportunities in an economy, entrepreneurship culture and cultural collectivism diminish it.

The findings provide policy makers and stakeholders with valuable insights into pertinent environmental factors that determine the differential propensities of immigrant and native residents to become entrepreneurs.

This study provides an expanded understanding of the connection between being an immigrant and entrepreneurial activity, by explicating the influences of country-level conditions.

Entrepreneurship involves complex interactions between individuals and environments but there is little research on these dynamics. We address this gap by conducting an inductive qualitative study of entrepreneurs in the exclusive tourist destination of Tiradentes, Brazil. Tiradentes has a unique architectural, cultural, and economic heritage that serves as a unique sociocultural backdrop that influences entrepreneurs’ models of start-up thinking and action. Specifically, our investigation revealed that entrepreneurs’ backgrounds (native vs. nonnative) and social identities come together with the sociocultural fabric of the community in a way that moved them towards a “Joia” or “Bijuteria” orientation, each of which were associated with a distinct mindset. This diversity had implications for entrepreneurs’ conceptualizations of start-up models possible within the backdrop of Tiradentes sociocultural fabric and this influenced the actions entrepreneurs took such as the geographic location chosen for the business and the business practices used. We discovered that entrepreneurs favoring one orientation over another tended to occupy predictable physical and social positions in the community while also espousing similar values and perspectives. These results are used to elaborate the theory on the link between the external and internal explanation for entrepreneurial thinking and action. The net effect is new understanding regarding ways models of start-up thinking and action can be investigated.

The purpose of this paper is to analyse how the introduction of a liberalised regime for labour immigration in Sweden affected the self-selection of new immigrant entrepreneurs and to what extent the changes in entrepreneurial income among new immigrants was due to self-selection or to a changing business environment.

Based on rich microdata from Swedish administrative registers, this paper investigates how incomes changed during the years before and after the migration policy reform. By decomposing the income differential of new immigrant entrepreneurs arriving before and after the reform, this study estimates the contribution of a changed composition of migrants to the changing entrepreneurial income.

Entrepreneurial income among self-employed new immigrants improved after the reform, narrowing the immigrant–native income gap, while among employees, the income gap remained during the whole period of the study. Out of the total 10.9 per cent increase in log income, the authors find that 2.7 per cent was due to selectivity, i.e., changing characteristics of new immigrant entrepreneurs. The remaining 8.2 per cent was due to increased returns to characteristics, i.e., the characteristics of new immigrant entrepreneurs were better rewarded in the markets in the latter period. Hence, increases in entrepreneurial income among new immigrants were due both to self-selection and changes in the business environment.

The authors find that the migration policy reform had the effect of attracting successful immigrant entrepreneurs. Hence, the findings have implications for migration policy as well as for growth and employment policy.

This paper reveals a positive trend regarding income from the entrepreneurship of new immigrants after the liberalisation of labour immigration policy in Sweden. Theoretically and methodologically, the authors combine self-selection theory and the mixed-embeddedness perspective in a novel way, using rich data and a quantitative approach.

The aim of this chapter is to investigate the immigrant women entrepreneurship phenomenon by analysing management academic literature on the issue. Stemming from the most current data on immigration and from the awareness that entrepreneurship is a viable instrument of immigrant (women) integration and inclusion, this chapter analyses the most updated management results on the issue. The analysis is mainly centred on works published after 2019, and some interesting insights emerge. Among them, we can refer to the awareness that research on immigrant women entrepreneurship is still in its infancy. Although, indeed, immigrant entrepreneurs and women entrepreneurs have been analysed considerably by researchers, it has been mainly in isolation. Therefore, room for investigating still exists, and this chapter uncovers some possible future research avenues. Moreover, by reviewing the selected papers, it clearly emerges that not all immigrant women entrepreneurs are alike; different targets (that is, different ethnicities) must be addressed differently by policy makers when policy measurements are identified. In other words, generic programmes aimed at increasing entrepreneurship among immigrant women cannot necessarily be successful.

Given the importance of immigration and immigrant entrepreneurs in advanced economies, the authors take an entrepreneurial ecosystem perspective to study the home-country benefits possessed by immigrant entrepreneurs and how home-country entrepreneurial ecosystem factors affect immigrant entrepreneurial motivations, activities and outcomes.

This conceptual research paper follows McGaghie, Bordage and Shea's (2001) four-step new theory creation process, which suggests that new theories can be created through facts extraction from the extant literature.

The authors propose that although immigrant entrepreneurs are unable to take full benefit of the host-country entrepreneurial ecosystem due to blocked mobility, they do have capabilities to access and use their home-country entrepreneurial resources and opportunities. The authors further propose that home-country entrepreneurial capital can be systemically analyzed through the framework of the entrepreneurial ecosystem. The results imply that immigrant entrepreneurship as a social and economic phenomenon can be studied more holistically from both host- and home-country perspectives compared to the traditional research boundary of the host-country only.

The research focuses on the identification of home-country effects on immigrant entrepreneurship through the lens of the entrepreneurial ecosystem. Testable propositions provide directions for future empirical research on the field of immigrant entrepreneurship from a home-country perspective. The research concludes that a holistic immigrant entrepreneurship study should consider dual (host- and home-country) entrepreneurial ecosystems.

Immigrant entrepreneurs benefit from both host- and home-country entrepreneurial ecosystems. This paper suggests co-effects of dual entrepreneurial ecosystems lead to a high rate of entrepreneurship and business success within some immigrant groups. Policymakers can increase economic activities by developing and deploying programs to encourage immigrants to embed in host- and home-country entrepreneurial ecosystems.

Based on the framework of the entrepreneurial ecosystem, this paper brings a novel perspective to examining home-country effects on immigrant entrepreneurship. It theoretically conceptualizes that immigrants have higher entrepreneurship rates than native-born populations because they have access to extra home-country entrepreneurial capital.

The purpose of this paper is to examine the time-series dynamics of entrepreneurship rates for different race classifications based on household characteristics over the 1996 through 2013 period.

Using microdata from the Kauffman Foundation, this study investigates the roles of unemployment, homeownership, income, immigration, education, age, gender and marital status in relation to entrepreneurship rates for different race classifications through ridge regression analysis.

Results suggest that the time-series variation in entrepreneurship rates for different race classifications are variable-dependent, moreover, the economic and statistical significance of the candidate explanatory variables are sensitive to the time period under analysis. Unemployment, homeownership, education, age and marital status are significant variables for whites while unemployment, income, immigration and gender variables are significant for blacks. For the case of Native Americans and Asians, the candidate explanatory variables do not explain the time-series variation in entrepreneurship rates for the sample periods in this study.

This study exhibits implications for public policy in helping to promote entrepreneurship at the individual level and help stimulate entrepreneurial activity as a mechanism for promoting economic growth.

The findings suggest the importance of examining entrepreneurship rates across time based on race classifications. This study highlights the importance of conducting ridge regression analysis for different sub-periods in time when assessing entrepreneurship rates.

Drawing on the resource-based view, this study aims to examine how family involvement in migrant-founded small businesses gives rise to distinctive resources that help these businesses survive.

Using microdata from the 2007 US survey of business owners (SBO), this study uses logit regression modeling to test the hypothesized relationships.

Results show that small businesses founded by migrant entrepreneurs are less likely to survive and that family involvement weakens the negative relationship between founder migrant status and business survivability. In addition, the positive moderating effect associated with family involvement is further strengthened by the use of external/borrowing startup capital, thus migrant families founded small businesses with access to external capital have the highest probability of survival.

This study contributes to the literature on both migrant entrepreneurship and family business. This paper finds family involvement in the business, interacting with the founder’s migrant status, tends to create distinctive resource endowments that help to compensate for the resource constraints associated with migrant entrepreneurs. Such resource endowments may take the form of high levels of solidarity among migrant family members and the spanning role of the migrant kinship networks extended from the country of origin to the country of residence.

Indian immigrants in the United States and other wealthy countries are successful in entrepreneurship. Using Census data from the three largest developed countries receiving Indian immigrants in the world – the United States, the United Kingdom, and Canada – we examine the performance of Indian entrepreneurs and explanations for their success. We find that business income of Indian entrepreneurs in the United States is substantially higher than the national average and is higher than for any other immigrant group. Approximately half of the average difference in income between Indian entrepreneurs and the national average is explained by their high levels of education while industry differences explain an additional 10 percent. In Canada, Indian entrepreneurs have average earnings slightly below the national average but are more likely to hire employees, as are their counterparts in the United States and the United Kingdom. The Indian educational advantage is smaller in Canada and the United Kingdom, contributing less to their entrepreneurial success.