Growth in first- and second-generation immigrant firms in Sweden

Nedim Efendic (), Fredrik W. Andersson () and Karl Wennberg ()
Additional contact information
Nedim Efendic: Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, SE-11383 Stockholm, Sweden
Fredrik W. Andersson: Statistics Sweden, Postal: Statistics Sweden, Klostergatan 23, SE-701 89 Örebro, Sweden

No 265, Ratio Working Papers from The Ratio Institute

Abstract: Despite the burgeoning literature on immigrant entrepreneurship, there is a dearth of research on the social and economic factors shaping the performance of immigrant-run firms. Drawing upon human and social capital theory and assimilation theory, we investigate differences in performance measured as revenue growth in a comparative study of native and immigrant CEOs. Following 50,002 small firms in Sweden over four years, we find distinct patterns in both firm size and revenue growth between firms managed by immigrants and by natives. While firms run by second-generation immigrants from OECD countries exhibit higher growth rates than natives, the reverse is true for second generation immigrants from non-OECD countries, suggesting that economic integration in terms of immigrants’ small business growth in Sweden is characterized by segmented rather than universal assimilation.

Keywords: Immigrant entrepreneurship; intergenerational differences; firm growth; Sweden (search for similar items in EconPapers)
JEL-codes: J61 M13 O18 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-12-23
New Economics Papers: this item is included in nep-bec, nep-ent, nep-mig and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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