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Immigrant Enclaves and the Success of Entrepreneurial Ventures

Posted: 6 Dec 2009 Last revised: 14 Jan 2012

Charles Braymen

Creighton University - Department of Economics

Florence Neymotin

Kansas State University - Department of Economics

Date Written: June 1, 2011

Abstract

The present work explores the characteristics of entrepreneurs and their environments that are related to entrepreneurial success. To this end, we examine the relationship between immigrant status and firm location decisions of entrepreneurs and their resultant firm profits and viability. To categorize location decisions, we focus on the concepts of immigrant and ethnic enclaves. Data on entrepreneurs and their beginning firms were provided by the Kauffman foundation and cover the years 2004-2008. These firm-level data are linked to Census 2000 Summary Files 3 and 4 at the zip-code level of measurement and are used to empirically investigate the effect of enclaves. We find no evidence for an effect of the nativity of firm owner on the entrepreneurial success of the firms. We find a statistically significant negative relationship between the immigrant representation in an area and firm profitability.

Keywords: Enclave, Entrepreneurship, Immigrant, Profits

JEL Classification: L25, L26, J61

Suggested Citation

Braymen, Charles and Neymotin, Florence, Immigrant Enclaves and the Success of Entrepreneurial Ventures (June 1, 2011). Available at SSRN: https://ssrn.com/abstract=1518929 or http://dx.doi.org/10.2139/ssrn.1518929

Charles Braymen

Creighton University - Department of Economics ( email )

2500 California Plaza
Omaha, NE 68178
United States

Florence Neymotin (Contact Author)

Kansas State University - Department of Economics ( email )

Manhattan, KS 66506
United States

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