Immigrant entrepreneurship in the United States: Intersectionality as a blessing and a curse

Abstract

Immigrant entrepreneurship is a crucial topic of interest for academics, policymakers, and the popular press. Discussions of related topics often use intersectionality to explain the compounding effects of multiple “oppressed” identities; the current study provides some novel insights into how intersectional effects can also confer unique advantages to immigrant populations in the United States. We examine intersectional effects across immigrants' higher education, their home country's entrepreneurial culture, and the host country's state-level institutional environment on the probability that people become entrepreneurs. With a sample constructed from multiple sources and spanning 2005 to 2019, this research explores the channels that affect immigrants' self-selection into entrepreneurship. Although higher education and entrepreneurial cultural background positively affect new venture creation, state-level institutional barriers, like E-Verify mandates, create heterogeneous effects across immigrant groups. Furthermore, the entrepreneurial culture of immigrants' home countries leaves a lasting impression on venture creation, particularly when combined with higher education and even in the face of institutional barriers. This study offers policy makers relevant insights for how to augment the contributions of immigrant entrepreneurs and enhance the positive spillovers of new venture creation.