Why Family Matters: The Impact of Family Capital Resources on Immigrants’ Exit from Entrepreneurship
48 Pages Posted: 1 Nov 2016
Date Written: November 1, 2016
We integrate insights from the social embeddedness perspective with research on immigrant entrepreneurship to theorize on how family resources influence exit from entrepreneurship among previously unemployed immigrant entrepreneurs. Results from a cohort study of immigrant entrepreneurs in Sweden reveal that family resources are important for immigrants to integrate economically into a country. We find that having family members in geographical proximity increases immigrant entrepreneurs’ likelihood of remaining in entrepreneurship. Further, family financial capital enhances immigrant entrepreneurs’ likelihood of remaining in entrepreneurship as well as their likelihood of exiting to paid employment. Although often neglected in immigrant entrepreneurship studies, resources accruing from spousal relationships with natives influence entrepreneurs’ exit behavior. We discuss contributions for research on entrepreneurial exit, entrepreneurs’ social embeddedness, and immigrant entrepreneurship.
Keywords: immigrant entrepreneurship, entrepreneurial exit, family resources, social embeddedness
JEL Classification: J6, L26
Suggested Citation: Suggested Citation