ABSTRACT
The main policy implications inferred from my study are summarised here. In each set of empirical studies conducted in this dissertation, I identify some gaps that could be filled with appropriate policy initiatives. These gaps are as follows:
Firstly, there is a gap in the self-employment propensity of potential and actual entrepreneurs, between immigrants and natives. Policymakers should bear in mind that the entrepreneurial intent of an individual may not result in the creation of a firm by such an individual; and that immigrants, as a disadvantaged group, may be more likely to intend to start firms than natives, but, for similar reasons, less likely to succeed in doing so.
Secondly, there is a gap in the survival rates of native- and foreign-owned firms, with the former surviving longer than the latter. I suggest that this may be caused by the liability of foreignness, i.e. adverse situations arising from a lack of familiarity with the host market rules, poor language skills, lack of work experience, and discrimination.
Finally, there is an income gap between self-employed and salaried immigrants, with the self-employed earning more than the salaried. This dissertation provides empirical evidence for slightly greater gains in immigrant earnings derived from self-employment than from salaried employment. Various factors may cause this gap. On the one hand, salaried immigrants may face more obstacles in the labour market than native workers. Empirical studies show that, other things being equal, and depending on the industry sector, male immigrants earn between 7.2 and 16.3 per cent less than native men (Martín 2006). On the other hand, apart from the traditional low-skilled and labour-intensive activities referred to in the immigrant entrepreneurship literature, immigrants may be creating innovative and profitable businesses, and, thus, earning more.
Policymakers should be aware of the increasing significance of the entrepreneurial activity of immigrants in Spain and offer tailored responses to improve their economic integration in the situations
described above. Some policy initiatives that could help reduce these gaps are:
On the one hand, policymakers should study the wage labour market and identify the factors that compel immigrants to resort to self-employment; policies should reduce differences in access to the labour market and in job conditions. Initiatives could entail speeding up the work permit application process and the recognition of foreign credentials, or adopting measures to combat discrimination towards salaried immigrants.
On the other hand, policymakers should take into account factors that hinder the start-up process of immigrant firms. Policies which facilitate initial financing and make expert support available to immigrant entrepreneurs during the initial years of their firms' operation should be adopted so that immigrants can overcome the additional barriers caused by the liability of foreignness both at the firm precreation and post-creation stages.
Finally, the promotion of entrepreneurship should also target immigrants who are increasingly becoming self-employed.
