Enclaves and entrepreneurial success

Braymen, Charles; Neymotin, Florence

doi:10.1108/jepp-08-2012-0039

Cited by 9 publications

(6 citation statements)

References 76 publications

(88 reference statements)

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“…They sometimes alienate themselves from the broader native community and negatively impact their chances of entrepreneurial success (Haller et al, 2011). More indirect evidence of this phenomenon is outlined by Braymen and Neymotin (2014), who discover native firm profitability is negatively impacted when that firm is in an ethnic enclave. If the reverse is true, or if immigrant (or second-generation immigrant) firm profitability is limited by the extent of ethnic enclaves and is negatively impacted when an immigrant (or second-generation immigrant) firm is located outside of such enclaves, the growth potential of firms owned by second-generation immigrants who downwardly assimilate is severely limited.…”

Section: What About the Children?mentioning

confidence: 99%

Give me your rested, your wealthy, your educated few? A critical discussion of the current literature on immigrant self-employment

Bedi

Jia

2022

JEPP

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PurposeThe finding that immigrants are more likely to self-employ than natives has been consistently shown by different researchers. At the same time, many call for the prioritization of high-skilled immigration as they believe low-skilled entrepreneurs are not particularly innovative or high-growth-oriented. The purpose of this study is to critically review and synthesize the current literature on immigrant self-employment, paying particular attention to low-skilled immigrant entrepreneurship and the popular policy recommendation that high-skilled immigrants should be prioritized.Design/methodology/approachThe authors survey the existing literature on immigrant self-employment and discuss recurring data issues, how those issues have or have not been addressed, as well as how these data issues impact the validity of policy recommendations that favor high-skilled immigrants and disfavor low-skilled immigrants. In particular, the authors examine how length of stay in the host country and host country institutions impact immigrant self-employment, especially low-skilled immigrant self-employment. The authors also point out unintended consequences of low-skilled immigration.FindingsThe authors find data issues significantly impact the potential justifications behind calls to favor high-skilled immigrants. In particular, many researchers underestimate the positive impacts of low-skilled immigrant self-employment by not accounting for institutions and length of stay in the host country. The authors conclude with policy recommendations that prioritize high-skilled immigration should be re-examined in light of recurring omitted variable biases within previous studies and evidence of a number of positive unintended consequences associated with low-skilled migration.Originality/valueThe authors review current literature and discuss how important confounding variables, like the number of years an immigrant entrepreneur has lived in a host country and the institutions of a host country, make common policy recommendations suggesting prioritization of high-skilled immigration problematic. The authors also discuss potential solutions to these data issues, ways these issues have been solved already, and possible ways forward. Finally, after considering the literature, the authors offer our own set of policy recommendations.

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Section: What About the Children?mentioning

confidence: 99%

Give me your rested, your wealthy, your educated few? A critical discussion of the current literature on immigrant self-employment

Bedi

Jia

2022

JEPP

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“…Although these phenomena are similar to EEs in that they are geographically bounded, EEs are distinct in that they do not focus on a specific technology and can contain ventures from any industry or sector. Finally, EEs are also different from "entrepreneurial enclaves" (e.g., Braymen & Neymotin, 2014;Li, Isidor, Dau, & Kabst, 2018), which represent groups of firms united by entrepreneurs from specific ethnic groups or by co-located communities of immigrant entrepreneurs. In contrast, studies of EEs focus on all entrepreneurial actors within a geographic area (typically, a city or sub-national region).…”

Section: What Makes Entrepreneurial Ecosystems Unique and Vibrant?mentioning

confidence: 99%

Place-Based Advantages in Entrepreneurship: How Entrepreneurial Ecosystem Coordination Reduces Transaction Costs

Roundy

Fayard

2020

Journal of Behavioral and Applied Management

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Academics and practitioners are increasingly lauding the economic and community benefits of entrepreneurial ecosystems: the interrelated forces that promote and support entrepreneurship in geographic areas. Most researchers examining entrepreneurial ecosystems have sought to identify their core attributes rather than isolating the concrete mechanisms by which entrepreneurial ecosystems influence entrepreneurs. We address this omission in ecosystems research by theorizing about a specific set of economic forces through which ecosystems influence the entrepreneurship process: cost-reduction mechanisms. We integrate and extend insights from transaction cost economics and develop a framework for understanding the costreducing effects of ecosystems on entrepreneurial activities. We synthesize the fragmented research on entrepreneurial ecosystem coordination and theorize that as coordination increases three types of costssearch, negotiation, and enforcementdecrease, which improves ecosystem participants' ability to engage in entrepreneurship. Our theorizing contributes to research at the management and entrepreneurship interface and produces actionable insights for entrepreneurs and ecosystem builders.

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“…Immigrant entrepreneurship is a topic that has been widely studied by scholars around the world (Braymen & Neymotin, 2014;Chrysostome & Lin, 2010;Curci & Mackoy, 2010;Ndofor & Priem, González & Campbell, 2018 International Journal of Applied Management and Technology 48 2011; Pisani, 2012;Zolin & Schlosser, 2012). There has been much research on the role of immigrant entrepreneurship in host-country economies.…”

Section: Synthesis Of the Literature Reviewmentioning

confidence: 99%

“…The limited amount of contemporary scholarship in the area of immigrant entrepreneurship research seems to suggest that immigrant entrepreneurs who eventually abandon their ethnic enclave or ethnocentric strategy are favored by earning better returns on their ventures as they target mainstream customers (Braymen & Neymotin, 2014;Ensign & Robinson, 2011;Trevizo & Lopez, González & Campbell, 2018 International Journal of Applied Management and Technology 49 2016). In 2014, Braymen and Neymotin, using Kauffman Foundation data from 2004 to 2008, found a statistically significant negative effect on firm profitability for businesses that were located in immigrant enclaves.…”

Section: Synthesis Of the Literature Reviewmentioning

confidence: 99%

Beyond the Enclave: Success Strategies of Immigrant Entrepreneurs

González

Campbell

2018

IJAMT

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In the United States, immigrant entrepreneurs start almost one third of all new businesses. However, many immigrant entrepreneurs lack the knowledge or expertise to evolve their businesses beyond the ethnic enclave where their businesses are located. This multiple case study captured the strategies used by five Latino immigrant business owners who successfully expanded their business beyond their ethnic enclave. The conceptual framework for this study was dynamic capabilities theory. Data were collected from interviews, company documents, and observations of the operation of businesses and owners. Member checking and transcript reviews were used to enhance the reliability and credibility of the data. Miles, Huberman, and Saldana’s data analysis method was used to identify six themes that yielded three possible strategies to help Latino immigrant business owners expand outside of their enclave: (a) adopt a multicultural hybridism model changing the internal makeup of the employee base to include more interethnic labor and managerial resources; (b) achieve language and cultural proficiency of the host community; and (c) seek and nurture professional development and mentorship relationships to obtain access to advice, opportunities, and financial resources. Also noted was the importance of individual readiness to seize opportunities and being tenacious in their business efforts. The study findings may contribute to positive social change because strategies that help immigrant entrepreneurs succeed have benefits that extend beyond their immediate family to the broader communities in which they operate by increasing job creation, wealth accumulation, and the development of society.

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Enclaves and entrepreneurial success

Cited by 9 publications

References 76 publications

Give me your rested, your wealthy, your educated few? A critical discussion of the current literature on immigrant self-employment

Give me your rested, your wealthy, your educated few? A critical discussion of the current literature on immigrant self-employment

Place-Based Advantages in Entrepreneurship: How Entrepreneurial Ecosystem Coordination Reduces Transaction Costs

Beyond the Enclave: Success Strategies of Immigrant Entrepreneurs

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