Immigrant Entrepreneurs

By
Dr Nur Suhaili Binti Ramli

On-going debates among scholars in the immigrant

entrepreneurship studies argue that immigrant
entrepreneurs might contribute a significant role in a host
country socio-economic development. However, some
founded contradict findings. These contradictions raised a
question: Does the immigrant entrepreneurship positively
contribute to the host country socio-economic
development? Recently, the immigrant entrepreneurship
phenomenon is passionately debating in Europe, besides in
the United States, Australia, and Canada. It includes the
characteristics of immigrant entrepreneurs, immigrants’
background, push-and-pull factors, type of businesses,
mode of entry and transnational network in doing business
between host and home countries. However, little has been
critically investigating on immigrant entrepreneurship on
their success rates at the host country, the longevity of their
businesses, surviving during crises periods, the potential of
going global firms, and opportunity identification. These
research gaps need to be addressed, and findings are crucial
for the EU Government’s decision making in drafting
policies to reduce problems within the area (part of
migration issue).

Source: http://iwchamilton.ca/unpack/what-you-need-to-know-about-immigrant-entrepreneurs/

There are rising numbers of studies between 2010 and 2018 focus on the performance of immigrant
entrepreneurs. It compares businesses created by native and immigrant entrepreneurs in term of longevity,
strategy during crises periods, and those businesses that created small and became global brands. Questions such
as how immigrant entrepreneurs have different approaches compared to non-immigrant entrepreneurs’ over-time ?
Also, how they recognise entrepreneurial opportunity identification at the host country differently than the native?
Are interesting to follow and examine, especially in Europe, when the influx of migration is a critical issue.
Researchers have found that there is a direct link between immigrant entrepreneurs and success longevity in their
businesses and showed that these successes lead to the
creation of global brands, for example, Heinz, Avon, Dell,
Amazon, Estee Lauder and hundred others. Therefore, it is
worth to take consideration to support immigrant
entrepreneurship in various ways, both financial and non-
financial, as they are likely to contribute back to the host
country’s benefits like job creation, establish and smoothen
business entry barrier to their home country, and create
competitive advantage.

Source: https://www.ilctr.org/promoting-immigrants/immigrant-entrepreneurship/

A researcher at Ca’ Foscari University of Venice, Dr Nur Suhaili Binti Ramli, found that during the Great Depression,
immigrant entrepreneurs put more endeavour into marketing innovation, while the non-immigrant entrepreneurs
(native) are more likely to improve their product through innovation, retaining the same product line and target
market. Also, using the same method examining the differences in strategies between immigrant entrepreneurs
and non-immigrant entrepreneurs, during the Second World War, illustrated a similar result as in the Great
Depression. A compelling finding demonstrates that immigrant entrepreneurs started to implement market
segmentation, evident from their clear focus on lipstick during wartime, while non-immigrant entrepreneurs
ventured into vertical product differentiation, strengthened their quality with product improvement, which
increased consumer trust by associating their brands with particular products. Therefore, Dr Ramli and her
collaborator Professor Finotto is interested in further research on how these two groups of entrepreneurs
(immigrant and native) recognise markets, customers, and entrepreneurial opportunity while implementing
different strategies in Europe. Dr Ramli and her team are currently researching a comparative study of
entrepreneurial opportunity identification between immigrant entrepreneurs and non-immigrant entrepreneurs in
Europe over time to advance the earlier findings.

A Professor at Harvard Business School, Professor William R. Kerr and a Senior Research Scientist, Dr Sari Pekkala
Kerr, revealed that many policymakers believe that immigrant founders were essential for the revival of the
country’s growth and continued recovery from the Great Depression. In contrast, Dr Nahikari Irastorza from
Malmö University, and Professor Iñaki Peña-Legazkue from Deusto Business School Spain indicated that the
immigrant entrepreneurs are more likely to quit their businesses earlier than their native competitors. Although
there are mixed findings on the business performances of immigrant entrepreneurs, in general, they can adapt and
expand despite the economic crisis with several explanations including on how and why they identify
entrepreneurial opportunity at host country differently than the native, which Dr Ramli and her team are
researching now.

Therefore, a comparative study of immigrant entrepreneurs and non-immigrant entrepreneurs is relevant. The
entrepreneurial opportunity identification between these two groups of entrepreneurs is fascinating to observe,
and a comparative study over time between these two groups of entrepreneurs are worth to investigate. Also,
during the crises periods, some immigrant entrepreneurs at host country are somewhat patriotic, especially when
their host country is facing difficulties, for example during the Great Depression, Second World War, recession and
financial crisis, during which they show support towards local governments. Another evident from a study
conducted by Dr Ramli supported this claim, where immigrant entrepreneurs during the Second World War helped
the US government to survive during wartime. For example, more than 50 per cent of facilities at one of an
immigrant entrepreneur’s factory and laboratories were made available to the US Government for the production
of war items for the armed forces.

The immigrant entrepreneurship phenomenon must not be excluded from local agendas and discussion,
particularly in Europe. Recently, CENSIS Italy published a report on a growing number of immigrant
entrepreneurship and a positive causal effect of immigrant entrepreneurship in the last ten years, which is
beneficial for the internationalisation strategy as well as job creation, contribution to the economic growth, and
helping local government during the economic crisis. As a conclusion, more evidence in this research area will help
Europe for shaping and improving the policy in the future to benefit the economy and society at large.

Further reading:

CENSIS (2019), Available online at http://www.censis.it/7?shadow_comunicato_stampa=121202

Kerr, S.P., & Kerr, W.R. (2017). Immigrant Entrepreneurship. In Measuring Entrepreneurial Businesses:
Current Knowledge and Challenges, 187-249. Chicago, Illinois: University of Chicago Press.
Irastorza, N., & Peña-Legazkue, I. (2018). Immigrant entrepreneurship and business survival during the recession:
Evidence from a local economy. The Journal of Entrepreneurship, 27(2), 243-257.
Ramli, N.S., (2016). A comparative study of marketing strategies: the development of cosmetic brands created by
diaspora entrepreneurs and non-diaspora entrepreneurs in the US cosmetic industry. [Doctoral
dissertation], University of York, United Kingdom.
Ramli, N.S., (2015). Immigrant entrepreneurs on the world's successful global brands in the cosmetic industry. 
Procedia-Social and Behavioral Sciences, 195, 113-122

The author and her team are currently working on the following project:

A Comparative Study of Entrepreneurial Opportunity Identification between Immigrant Entrepreneurs and Non-
Immigrant Entrepreneurs in Europe.
Researcher: Dr Nur Suhaili Binti Ramli Twitter: DrSuhailiRamli
Funding: Ca’ Foscari University of Venice, Italy
Supervisor/Collaborator: Professor Vladi Finotto