Some Socio-Institutional Factors Which Explain the Greater Degree of Entrepreneurial Activities of Immigrants

43 Pages Posted: 19 Jun 2010

See all articles by Claudio Mancilla

Claudio Mancilla

Universidad de Los Lagos

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech)

Yancy Vaillant

Autonomous University of Barcelona - Department of Business Economics

Date Written: May 16, 2010

Abstract

Immigrants have mostly been studied for their contributions as members of the labour force. However, they often choose to become entrepreneurs. According to the relevant literature, there is evidence that immigrants are relatively more entrepreneurially active than local inhabitants. The objective of this study is to verify how being an immigrant influences individuals to become entrepreneurs. This paper also analyses how different socio-institutional framework conditions have different influences on the entrepreneurial activity of immigrants, helping to explain their higher rates of entrepreneurial activity. To conduct this research, the Spanish Global Entrepreneur Monitor (GEM) adult population survey from 2008 was used, to which a rare events logit regression model was applied. The results indicate that an immigrant has a higher likelihood of becoming an entrepreneur. Role Models and Social Fear of Failure explain part of the differential entrepreneurial activity rates for immigrants in Spain. Compared to Spaniards, the self-confidence of immigrants in their entrepreneurial skills has a stronger impact on their entrepreneurial activity.

Keywords: Entrepreneurship, Immigrants, Role-models, Fear of Failure, Entrepreneurial Self-confidence

JEL Classification: M13

Suggested Citation

Mancilla, Claudio and Lafuente, Esteban and Vaillant, Yancy, Some Socio-Institutional Factors Which Explain the Greater Degree of Entrepreneurial Activities of Immigrants (May 16, 2010). Available at SSRN: https://ssrn.com/abstract=1626315 or http://dx.doi.org/10.2139/ssrn.1626315

Claudio Mancilla (Contact Author)

Universidad de Los Lagos ( email )

Avenida Fucshlocher 1305
Osorno
Chile

HOME PAGE: http://www.ulagos.cl

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech) ( email )

Barcelona, Barcelona
Spain

Yancy Vaillant

Autonomous University of Barcelona - Department of Business Economics ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

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