Why Family Matters: The Impact of Family Capital Resources on Immigrants’ Exit from Entrepreneurship

48 Pages Posted: 1 Nov 2016

See all articles by Miriam Bird

Miriam Bird

Stockholm School of Economics

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS)

Date Written: November 1, 2016

Abstract

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

Bird, Miriam and Wennberg, Karl, Why Family Matters: The Impact of Family Capital Resources on Immigrants’ Exit from Entrepreneurship (November 1, 2016). Journal of Business Venturing, Vol. 31, No. 6, 2016. Available at SSRN: https://ssrn.com/abstract=2862316

Miriam Bird

Stockholm School of Economics ( email )

PO Box 6501
Stockholm, 11383
Sweden

Karl Wennberg (Contact Author)

Linkoping University - Institute for Analytical Sociology (IAS) ( email )

Norrköping, 601 74
Sweden

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