Baltic Journal of Economic Studies (Nov 2016)
INFLUENCE OF IMMIGRANTS ON THE ENTREPRENEURSHIP DEVELOPMENT IN THE HOST COUNTRIES
Abstract
Research subject. In the economic literature the question under discussion is whether the migrant entrepreneurs are more active in business and self-employment than native, as well as what role government should play when receiving entrepreneur migrants. This paper should provide answers to the abovementioned questions, and give recommendations to the governments of the host countries on migration policy taking into account the results obtained. The purpose of this article is to investigate the entrepreneurial activity of immigrants in the host countries, and to analyze the migration policy of the host countries concerning migrant entrepreneurs. Survey methodology. We used theoretical and empirical research methods; provided analysis of recent publications of scientists on the discussed subject, comparing the results obtained with statistical data, and provided practical recommendations based on survey results. Results. Migrants are often seen as those who have a considerable propensity for entrepreneurial activity. Proponents of this point of view suggested the case of migrant entrepreneurs’ success in China and the United States, arguing that workers may not need work with a formalized salary because of theirs entrepreneurial independence. Despite the theoretical basis of higher business activity, empirical studies of entrepreneurial activity of migrants are not clear. One of the arguments, which determine the attitude towards migrants, as more capable of entrepreneurship, based on the selectivity. The fact that a person has taken a relatively risky decision to migrate, ensure its stronger business activity and, consequently, the share of businessmen in this category of the labor force must be greater than the average for the country of immigration. Host governments often use both specific and general business support programs. Specific programs include the expansion of linguistic knowledge, business skills, and professional contacts of migrants’ labor force importer countries. Migrant entrepreneurs, especially when they work in the field of innovation or in sectors with high added value, play a great potential role in economic growth and competitiveness of host countries. Such migration can make a significant contribution in supporting economic activity and contribute to the social adaptation of migrants in destination countries. Conclusion. Entrepreneur migrants can help to stabilize the labor market, which will benefit both migrant workers and local residents. Given the fact that not all immigrants have the appropriate skills, ability, desire and opportunity to be entrepreneurs in the host countries, the introduction of a single incentive policy for immigration only entrepreneurs and investors, without taking into account the needs of the labor market seems to be counterproductive.
