A study published by the Journal of World Business found that immigrants are more likely to become entrepreneurs as they are more willing to take risks. According to Peter Vandor, a senior researcher, an economist at the Vienna University of Economics and Business, immigrants have a more entrepreneurial personality as a result of self-selection.
The research shows that international immigrants are more likely to start companies compared to native-born residents. This can be attributed to their willingness to take reasonable risks. This personality trait is one of the reasons why people decide to immigrate anyway.
Over the years, there have been many explanations for the high level of entrepreneurship among immigrants.
What Are the Other Reasons That Make Immigrants Likely to be Entrepreneurs?
Among other reasons, many believe that the disadvantages and discrimination in the labor market push immigrants to start their ventures. That is to say that immigrants set up their businesses when they find it difficult to enter the labor market due to societal challenges.
Another theory is that immigrants are somehow able to capitalize on their social networks when they immigrate. This theory believes that immigrants with social networks can get access to financial capital, knowledge, and human resources. However, Vandor’s theory gives a much simpler explanation, that is that people with entrepreneurial streaks are just more likely to move to another country.
How Was the Study Conducted?
Peter Vandor published his study with a sample of 1,385 students to show a link between the willingness to take risks and the voluntary migration by immigrants. The result of the study established that there is a link between voluntarily migrating to a new country and having an entrepreneurial streak.