Ratio Working Paper No. 265: Growth in first- and second-generation immigrant firms in Sweden

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.

Related content: Growth in first- and second-generation immigrant firms in Sweden

Efendic, N., Andersson, F W., Wennberg, K. (2015). Growth in first- and second-generation immigrant firms in Sweden. Ratio Working Paper No. 265. Stockholm: Ratio.