Social capital and inequality in immigrant entrepreneurship: pathways and barriers

Immigrant entrepreneurs who belong to marginalized populations face significant financial, social, cultural, and legal barriers (Hernandez, 2024). While founding and sustaining a new business is not an equal experience for all (Guzman & Kacperczyk, 2019), entrepreneurship offers marginalized people a pathway to greater economic inclusion and social mobility (Min & Bozorgmehr, 2003; Hwang & Phillips, 2023; Rider et al., 2023). Furthermore, despite the risks associated with new enterprises, immigrants are more likely than their native-born counterparts to become entrepreneurs (Kerr & Kerr, 2020). Considering this evidence, entrepreneurship has the potential to offer marginalized immigrants a pathway to economic inclusion and social mobility. As organizational scholars and members of an unequal society with growing anti-immigrant sentiment, it is crucial to investigate the mechanisms that could reduce barriers to entrepreneurial entry and growth for marginalized immigrants. The literature on social capital identifies it as a powerful resource facilitating entrepreneurial success (Burt, 1992; Lin et al., 2001; Adler and Kwon, 2002; Samila & Sorenson, 2017; Portes & Sensenbrenner, 1993). However, in the context of immigrant entrepreneurship, the role of social capital is far from straightforward.. Immigrants, being foreign to the host country, often lack access to the social networks that facilitate entrepreneurial entry, especially in the absence of resource-rich ethnic enclaves (Portes & Stepick, 1985). Even when such networks exist, cultural norms or an overreliance on insular perspectives within these enclaves can limit entrepreneurial ambition and growth (Portes, 2014). Finally, first-order barriers such as marginalized identities may further constrain immigrants’ ability to cultivate resourceful social ties. This symposium tackles such intricacies in the literature to advance our understanding of social capital and inequality in the context of immigrant entrepreneurship. It will feature research that explores how social capital shapes inequities in immigrant entrepreneurship and examines interventions to mitigate these disparities. Key questions addressed include: a) Can social capital offset financial inequities that hinder entrepreneurial entry? b) How do multiple overlapping identities of people influence their engagement with entrepreneurial ecosystems and networks? c) What interventions, such as macro policy changes or digital tools, can reduce the social network-driven inequities faced by immigrant entrepreneurs? The Impact of Financial Constraints on Entrepreneurship: The Moderating Role Of Social Capital Author: Inara Tareque; Columbia Business School Navigating Identity Networks in Entrepreneurial Ecosystems Author: Nada Basir; University of Waterloo Author: Bessma Momani; University of Waterloo Author: Melissa Finn; University of Waterloo Author: Leslie Nichols; Wilfrid Laurier University The Entrepreneurial Dynamics of Trade Liberalization: Immigrants as Agents of Change Author: Ashlee Li; Author: Astrid Marinoni; Georgia Institute of Technology A Digital Refuge: How WhatsApp Offers Stability Amidst Mobility to NYC Asylum Seekers Author: Sandra Portocarrero; The London School of Economics & Political Science Author: Rohini Jalan; McGill University