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Crossing the Borders towards Entrepreneurship:

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Presentation to ISBE2019 by Anastsia Ri

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Crossing the Borders towards Entrepreneurship:

  1. 1. Crossing the Borders towards Entrepreneurship: Migrant Status, Gender and Entrepreneurial Intention Anastasia Ri Kamilya Suleymenova Neha Prashar* Karen Bonner* Mark Hart* Laura Heery* Jonathan Levie * ISBE November 15th , 2019
  2. 2. Background/ Aim Objective: provide empirical analysis leading to a better understanding of factors shaping the entrepreneurial process of immigrant and in-migrant groups in the UK •What are the differences in Entrepreneurial Intentions (EI) among different population demographics? •What factors shape them? •How well EI transform into action? Immigrants (non UK born) Regional in-migrants (UK born) Life-long residents Gender GEM UK report 2018: for the first time ever, reports a decline in total early- stage Entrepreneurial Activity Rate among immigrants (Hart et al, 2019).
  3. 3. EI models TPB (Ajzen, 1991) EE (Shapero, 1984) Attitude Social Norms Perceived behavioural control Desirability Propensity to actFeasibility Barriers & Facilitating factors Integrated Entrepreneurial Intentions Model (Krueger, 2009; Esfandiar et al., 2019) Perceived Desirability Propensity to act Perceived Feasibility Personal Desirability / Attitude Perceived social norms Perceived Self- Efficacy Perceived Collective Efficacy Perception of OPPORTUNITY Goal INTENTION Implementation INTENTION /ACTION SCCT (Lent et al., 1994 ; Liguori et al., 2019)) Entrepreneurial Self-Efficacy Entrepreneurial Outcome Expectations Prior Exposure Social support Entrepreneurial Attitude Entrepreneurial Intentions Locus of control Risk-Taking Propensity Creating, Knowing, Planning Style Personal factors Contextual factors
  4. 4. Context and Time specific EI Model with focus on migration Personal Desirability / Attitude Perceived Self- Efficacy & Propensity to act Perceived Collective Efficacy Perceived Social norms / Attitude Adagio motivatorsAllegro motivators Newness Adaptability In the host country And in the country of origin Formalandinformal institutions Includingmigrant- specific 12 3 4 Short-term/ Feasibility IndividualSociety Long-term/ Desirability “Four-leaf clover of migrants’ EI”
  5. 5. Hypotheses (i) Both immigrants and in-migrants have higher EI than life-long residents. (ii) Newness factor positively influence the EI of in-migrants and immigrants: they are more likely to have EI in the first years of their coming to a new region. (iii) In presence of formal and informal institutional barriers, the likelihood of in- migrant and immigrants to convert their EI into action increases with time through the adaptability mechanism. Immigrants (non UK born) Regional in-migrants (UK born) Life-long residents Gender
  6. 6. Data / Methodology We use pooled cross-sectional GEM UK data over 2003-2017 period •Individual with no entrepreneurial intention (would not be classed as a potential entrepreneur) •Potential entrepreneur (the stage at which an individual is intending to start a new business within the next three years); •Nascent entrepreneur (the stage at which an individual begins to commit resources, such as time and money, to starting a business and up to three months after the business has started to pay wages); •New business owner-managers (the stage which covers the period beginning three months after the business has started to pay income, such as salaries or drawings, and up to forty-two months (up to 3.5 years old); •Established business owner-managers (the business has been paying income, such as salaries or drawings, for more than forty-two months. 51, 890 obs Data limitations: •we are not able to track the same individual over time •the survey questionnaire does not cover all the constructs useful for understanding the mechanisms behind entrepreneurial intention
  7. 7. Data / Methodology Sequential 2 steps design: 1. we explore personal and contextual predictors of EI with a particular focus on migrants and gender status. We argue that modelling of EI requires accounting not only for individual and social feasibility and desirability, but also for the time dimension. 2. we interact the same dependent variables with the likelihood of being a nascent entrepreneur on the left-hand side. Personal Desirability / Attitude age, gender, education, ethnicity Perceived Self-Efficacy and Propensity to act “have skills”, “fear of failure”, “see opportunity” Budget constraint and necessity: “income” and “working status” Perceived Collective Efficacy “know entrepreneur” as a measure of networking opportunities, and region and year variables as contextual controls Perceived Collective Desirability “social desirability” and “social status” to control for agents’ perceptions of informal institutions Migrant-specific “migrant status” and “newness”; “newness” is obtained as an interaction between the “migrant status” and the “years in the region” variable
  8. 8. Findings Know entrepreneur 0.0507*** (0.00314) See opportunity 0.0660*** (0.00318) Have skills 0.0810*** (0.00607) Fear of failure -0.0191*** (0.00281) Social desirability 0.00594*** (0.00215) Social status -0.00253 (0.00270) 0.0377*** (0.00247) 0.0396*** (0.00171) 0.0819*** (0.00429) -0.0336*** (0.00153) -0.000257 (0.00256) -0.00922*** (0.00226) In-Migrant 0.0170*** (0.00379) Immigrant 0.0448*** (0.00741) 0.0114*** (0.00238) 0.00628 (0.00389) EI Nascent Female -0.0239*** (0.00475) -0.0142*** (0.00246) Non-white 0.0688*** (0.00521) 0.0238*** (0.00548)
  9. 9. Newness EI Nascent In-Migrant (0-3 years) 0.0264*** 0.0329*** 0.0174* 0.0201*** 0.0122 0.0270*** (0.00671) (0.0126) (0.00955) (0.00727) (0.00765) (0.00879) In-Migrant (4-8 years) 0.0237** 0.0174 0.0283*** 0.0116*** 0.00528 0.0171*** (0.00943) (0.0135) (0.00819) (0.00403) (0.00664) (0.00458) In-Migrant (9-15 years) 0.0172*** 0.0276** 0.00647* 0.0159*** 0.0129* 0.0176*** (0.00665) (0.0128) (0.00345) (0.00413) (0.00697) (0.00463) In-Migrant (16-25 years) 0.0189*** 0.0286*** 0.00743 0.00784** 0.00540 0.00933** (0.00399) (0.00323) (0.00632) (0.00316) (0.00431) (0.00406) In-Migrant (26-35 years) 0.00757** 0.0125 -0.000133 0.0132*** 0.0228*** 0.00429 (0.00323) (0.0113) (0.00958) (0.00507) (0.00710) (0.00517) In-Migrant (36+ years) 0.00636 0.00987 0.00249 0.000874 0.00688* -0.00495 (0.00753) (0.00703) (0.00970) (0.00297) (0.00372) (0.00419) Immigrant (0-3 years) 0.0689*** 0.0924*** 0.0389 -0.00670 -0.0179* 0.00561 (0.0249) (0.0260) (0.0291) (0.00636) (0.0101) (0.00779) Immigrant (4-8 years) 0.0592*** 0.0765*** 0.0396*** -0.00160 -0.0150* 0.0139 (0.0115) (0.0155) (0.0125) (0.00791) (0.00873) (0.00899) Immigrant (9-15 years) 0.0618*** 0.0600*** 0.0648*** 0.0302*** 0.0356*** 0.0260** (0.0161) (0.0107) (0.0234) (0.00778) (0.0134) (0.0128) Immigrant (16-25 years) 0.0308*** 0.0330* 0.0257** 0.0150 0.0256** 0.00297 (0.0102) (0.0180) (0.0102) (0.0108) (0.0112) (0.0153) Immigrant (26-35 years) 0.0152 0.0230 0.00334 -0.0163 -0.0123 -0.0206** (0.0134) (0.0227) (0.0171) (0.0123) (0.0189) (0.00860) Immigrant (36+ years) -0.00240 0.00346 -0.0103 0.00624 -0.00216 0.0167 (0.0156) (0.0202) (0.0240) (0.00746) (0.0129) (0.0108) Male Female Male FemaleAll All
  10. 10. Doctorate 0.0436*** 0.0411*** 0.0518*** 0.0223* 0.0270* 0.0178* (0.0114) (0.0156) (0.0167) (0.0119) (0.0152) (0.00999) Master’s degree 0.0570*** 0.0457*** 0.0766*** 0.0158** 0.00760 0.0272*** (0.00508) (0.00903) (0.0126) (0.00719) (0.0108) (0.00819) Batchelor’s degree 0.0397*** 0.0277*** 0.0590*** 0.00721 0.000584 0.0171*** (0.00561) (0.00946) (0.00666) (0.00530) (0.00772) (0.00654) A levels or equivalent 0.0345*** 0.0252*** 0.0501*** 0.00258 -0.00574 0.0138* (0.00559) (0.00935) (0.00940) (0.00663) (0.0102) (0.00734) GCSE or equivalent 0.0148*** 0.00350 0.0325*** 0.00589 -0.00204 0.0171* (0.00418) (0.00840) (0.00552) (0.00437) (0.00624) (0.00905) Vocational qualification 0.0276*** 0.0186** 0.0456*** -0.00124 -0.0144 0.0149** (0.00631) (0.00853) (0.0103) (0.00599) (0.0126) (0.00690) Other qualification 0.0379*** 0.0338* 0.0472** 0.0129 -0.00157 0.0333** (0.0128) (0.0176) (0.0185) (0.00953) (0.0109) (0.0142) Education EI Nascent Male Female Male FemaleAll All This finding stresses the importance of education in encouraging female entrepreneurship. Women, being on average more risk averse, and less confident than men, benefit greatly not only from training and mentoring, but also from formal education.
  11. 11. Conclusions •both immigrants and in-migrants are more likely to have EI than life-long residents. •propensity of migrants to have EI is different depending on the duration of their stay in the region. •we find that the probability of EI in an individual newly arrived in a location from abroad or from another region, is at its highest during the first three years. •while immigrants have a higher likelihood of EI from the very beginning of their residence in the region, they face important barriers which prevent them from converting their intentions into action in these early years, thus confirming the temporal gap between EI and action. •while we find no statistically significant relationship between formal education level and the likelihood to start a business among men, there is a significant relationship for women.

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