How Context Shapes Enterprise: Why Immigrants Are Often More Entrepreneurial

What is it about?

This study examines why immigrants are more likely than native-born residents to start and run businesses, and how this tendency varies depending on the economic, sociocultural, and institutional environments of the host countries. Drawing on the mixed embeddedness perspective, it highlights how structural opportunities and constraints interact with immigrants’ personal and community resources to influence their entrepreneurial activity. Using a multilevel, cross-country design with data from multiple secondary sources, the study finds that immigrants are consistently more likely than natives to become entrepreneurs. However, this gap depends on broader conditions: economic development and equality laws increase immigrant entrepreneurship, while strong market opportunities, pro-entrepreneurship cultures, and collectivism reduce it. The findings show that immigrant entrepreneurship reflects not just personal drive but also macro-level societal contexts. For policymakers, the study underscores the importance of institutional and cultural contexts in shaping immigrant entrepreneurship. Policies that support equal opportunity and reduce structural barriers can help channel immigrants’ entrepreneurial potential more effectively. At the same time, fostering inclusivity within entrepreneurial ecosystems ensures that these ventures contribute meaningfully to the host economy and social fabric.

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Photo by DISRUPTIVO on Unsplash

Photo by DISRUPTIVO on Unsplash

Why is it important?

This research offers a comprehensive, contextual view of immigrant entrepreneurship by showing how the interaction between individual and environmental factors explains differences between immigrants and natives in business creation. It integrates economic, sociocultural, and institutional perspectives into one framework, providing a deeper understanding of how national contexts shape entrepreneurial opportunity. Its timeliness lies in addressing one of today’s most pressing global dynamics: migration and its role in economic vitality. As societies become increasingly diverse, the study’s insights help inform evidence-based policies that promote entrepreneurship as a pathway to integration, innovation, and shared prosperity.