Growth Among First- and Second-Generation Immigrant Firms in Sweden

International Small Business Journal. doi: 10.1177/0266242615612533

42 Pages Posted: 1 Nov 2016

See all articles by Nedin Efendic

Nedin Efendic

Stockholm School of Economics

Fredrik Andersson

Statistics Sweden

Karl Wennberg

Linkoping University - Institute for Analytical Sociology (IAS)

Date Written: November 1, 2016

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

JEL Classification: J61, M13, O18

Suggested Citation

Efendic, Nedin and Andersson, Fredrik and Wennberg, Karl, Growth Among First- and Second-Generation Immigrant Firms in Sweden (November 1, 2016). International Small Business Journal. doi: 10.1177/0266242615612533, Available at SSRN: https://ssrn.com/abstract=2862335

Nedin Efendic

Stockholm School of Economics ( email )

PO Box 6501
Stockholm, 11383
Sweden

Fredrik Andersson

Statistics Sweden ( email )

Karlavägen 100
Stockholm
Sweden

Karl Wennberg (Contact Author)

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

Norrköping, 601 74
Sweden

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