Abstract

Immigrants often have limited opportunities in the labor market, resulting in low occupational mobility due to low levels of human, financial, and social capital (Bates, 2011, Redstone Akresh, 2006) and potentially also discrimination (Carlsson and Rooth, 2007). The constrained labor market opportunities immigrants face are often highlighted as a major reason for the high rates of immigrant entrepreneurship in developed nations (Li, 2001), and as such entrepreneurship has been portrayed as a form of immigrants’ economic integration (Sanders and Nee, 1996). However, hitherto we do not know what factors enable immigrants to stay in entrepreneurship and what factors may encourage immigrant entrepreneurs to exit from entrepreneurship. I theorize that the family, constituting bonding social capital, acts as a provider of important resources and therefore influences immigrants’ likelihood of exiting from entrepreneurship.

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