Entrepreneurs from Recent Migrant Communities and Their Business Sustainability

Muhammad Zubair; Jan Brzozowski

doi:10.6092/issn.1971-8853/8622

Authors

Muhammad Zubair Alpen-Adria-Universität Klagenfurt
Muhammad Zubair is a doctoral student at the Alpen-Adria-Universität Klagenfurt, Department of Sociology, Faculty of Management and Economics. He is working on Migration and Entrepreneurship. He did his Master in Business Administration in Pakistan. His most recent publications include: Zubair, M. and Bögenhold, D. (2018), "Social Bonds: Migration and Comparative Analysis of Remitting Behaviour between Pakistani and Indian Diaspora", Int. J. Business and Globalisation, 21(2).
Jan Brzozowski Cracow University of Economics http://orcid.org/0000-0001-8517-3485
Jan Brzozowski, economist, is an assistant professor at Cracow University of Economics, where he lectures (among other courses) on International Migration and Economics of International Migration. His research interests include immigrants and return migrants socio-economic integration, remittances and immigrant entrepreneurship. His most recent publications include: Brzozowski, J., Cucculelli, M., & Surdej, A. (2017), "The Determinants of Transnational Entrepreneurship and Transnational Ties’ Dynamics Among Immigrant Entrepreneurs in ICT Sector in Italy". International Migration, 55(3), 105-125; and Coniglio, N.D., & Brzozowski, J. (2018). "Migration and Development at Home: Bitter or Sweet Return? Evidence from Poland". European Urban and Regional Studies, 25(1), 85-105.

DOI:

https://doi.org/10.6092/issn.1971-8853/8622

Keywords:

visible minorities, migrant entrepreneurship, ethnic enclave, socio-economic integration

Abstract

The studies on migrant entrepreneurship point out at the heterogeneous roles that the ethnic enclave economy plays in the development of migrant firms. On one hand, the ethnic enclave provides a specific shelter for migrant start-ups, on the other it is criticized for hindering the further growth of migrant firms due to high uncertainty and competition, low income and limited development perspectives of the ethnic market. However, in the case of the recent migrant communities, the ethnic enclave economy in a host country is in the early stage of development or simply does not exist. In such a case, the literature on migrant businesses does not give a precise explanation what are the perspectives of ethnic business development in a host country. In this exploratory paper, we analyze the perspectives of the business sustainability in the case of the visible minority entrepreneurs who have no access to the ethnic enclave economy resources and institutions. Consequently, we connect two important theoretical approaches in the studies on migrant entrepreneurship: ethnic enclave economy and mixed embeddedness theory. Based on selected case studies of Indian-Pakistani and Afghani entrepreneurs in Klagenfurt (Austria) and Arab and Vietnamese entrepreneurs in Kraków (Poland), we investigate which factors play a role in the ethnic business development and to which extent the migrant entrepreneurial activities constitute the sustainable economic strategy in a host country. Our exploratory findings show that in the case of migrant entrepreneurs from poorly developed ethnic economies, the embeddedness of migrant beyond just simple co-ethnic network and its extension to other migrant communities is crucial for the sustainability of the business. Therefore, this results confirm the predictions of the mixed embeddedness theory.

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Entrepreneurs from Recent Migrant Communities and Their Business Sustainability

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