Exclude Me Not: The Untold Story of Immigrant Entrepreneurs in Sweden

Abstract

This article examines the perspectives of immigrant entrepreneurs on the barriers they face regarding their inclusion in public procurement in Sweden through the so-called supplier diversity programs. Drawing upon modern stakeholder theory and transaction cost economics, this study aims to identify potential barriers such entrepreneurs face in succeeding as suppliers to the public sector. Data were collected through interviews with immigrant entrepreneurs who had experience with the public procurement tender process in Sweden. The results reveal that immigrant entrepreneurs doing business with public procurement face several barriers, ranging from economic to social ones such as information, advertising, human resources, and undercapitalization. The interviewees believe that such barriers weaken their performance and hinder their success in public procurement tenders. When it comes to supplier diversity programs, the entrepreneurs under study were either unaware of such programs in public procurement in Sweden or did not believe in their effectiveness.

Immigrant Entrepreneurship in Sweden: The Liability of Newness

“…This use of virtual embeddedness helped them overcome the liability of newness [63] in the digital age in which companies must adapt to new technologies as they expand their customer and supplier networks. Furthermore, providing immigrants with financial and legal support and monitoring programs could be of value in overcoming the liability of newness as suggested in previous research [14].…”

“…Typically, without a credit history or asset collateral, immigrant entrepreneurs have difficulty obtaining bank loans [72]. Therefore, they turn to family members and friends for start-up capital [14].…”

“…Many participants in all three phases stated that their major challenge is their limited access to resources. These resources include start-up capital [14], a reliable workforce, information, and business relationships. The farmers also stated they needed more land to grow their crops.…”

“…From a policymaker perspective, it is important to understand the conditions in the early phases of immigrant entrepreneurship when effective support systems can provide essential assistance to new entrepreneurs. For example, financial-legal support and monitoring programs, as recommended in previous research [14], are critically important. Successful immigrant entrepreneurs can, and do, make significant economic, social, and cultural contributions to their host countries.…”

“…For companies founded by immigrant entrepreneurs, the liability of newness presents unique challenges that can threaten market entry and ultimately company success. For example, the race and ethnicity of immigrant entrepreneurs may create structural barriers that constrain the scope of their entrepreneurial activities [13], thereby limiting their performance, growth, and sustainability [14]. Immigrants' lack of relevant experience, resources, domestic language proficiency, and business relationships may create additional barriers.…”