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The Impact of Immigrant Entrepreneurship on Regional Development in Western Sweden
University of Eastern Finland.
Dalarna University, School of Technology and Business Studies, Business Administration and Management.ORCID iD: 0000-0001-6363-7066
2018 (English)In: Romanian Journal of Regional Science, ISSN 1843-8520, E-ISSN 1843-8520, Vol. 12, no 1, p. 18-42Article in journal (Refereed) Published
Abstract [en]

This paper discusses how immigrant entrepreneurship impacts regional development. Three towns in Western Sweden are analysed,using unique data on company start-ups at a local level. The findings suggest that immigrant entrepreneurs are overrepresented in the start-ups of labour intensive and low productive businessesin the service sector. Such entrepreneurship does not promoteregional development, but it may get the entrepreneur out of thereliance onwelfare schemes and meet theirbills. Resultantly, the region appears to be caught in a vicious circle of underdevelopment, whereincompanies started by immigrant entrepreneurs experience a limited market expansion, and this leads to low savings,low consumption, reduced stock of capital in the economy,and low income.

Thispaper offers important insights on how theory and results that stem from an aggregate national level may differ when entrepreneurship is analysed at a local level. It concludes that what works well and promotes regional development in metropolitan areas may lead to completely different outcomes in smaller towns in decaying industrial regions.

Place, publisher, year, edition, pages
2018. Vol. 12, no 1, p. 18-42
Keywords [en]
entrepren eurship, immigrants, unemployment, labour market, regional development
National Category
Business Administration
Research subject
Complex Systems – Microdata Analysis
Identifiers
URN: urn:nbn:se:du-27969OAI: oai:DiVA.org:du-27969DiVA, id: diva2:1221548
Available from: 2018-06-20 Created: 2018-06-20 Last updated: 2018-06-20Bibliographically approved

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CiteExportLink to record
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