Explaining differences in entrepreneurial activity between immigrants and natives: moderating roles of economic, sociocultural and institutional factors

Abstract

PurposeThis 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.Design/methodology/approachThe tests of the hypotheses rely on a multilevel cross-country research design that uses secondary data from different sources.FindingsCompared 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.Practical implicationsThe 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.Originality/valueThis study provides an expanded understanding of the connection between being an immigrant and entrepreneurial activity, by explicating the influences of country-level conditions.