Social capital and internal migrant entrepreneurship: Evidence from urban China

Abstract

The increasing flow of interregional migration can lead to the reconstruction of social capital. Unlike international migrants who tend to engage in enclave entrepreneurship, internal migrants are dispersed in host regions and experience the dual dynamic of alienation from their original social networks as well as integration into new societies. Using data collected from the China Migrants Dynamic Survey (CMDS), we examine different dimensions of social capital and their effects on migrant entrepreneurship. The results demonstrate that both enclave relationships from preexisting networks and the local identity newly established in host cities have a significant positive effect on migrant entrepreneurial activities. By distinguishing self-employment from entrepreneurial activities, the two dimensions of social capital exert significant influence on employer-based entrepreneurial activities, while local identity fails to promote the impact on urban migrants. Our study calls for a nuanced and situatedness understanding of social capital and migrant entrepreneurship.