The economic importance of migrant entrepreneurship: An application of data envelopment analysis in The Netherlands

Abstract

In the Anglo-Saxon literature in the past decade, much attention has been paid to the economic importance of ethnic (migrant) entrepreneurship. This type of self-employment appears to provide a vital and creative contribution to the urban economy. The rising size and importance of ethnic entrepreneurship has recently prompted much policy and research interest regarding migrant business in Europe. Also in The Netherlands this new phenomenon is increasingly recognised and regarded as an interesting focus for the city’s Small and Medium Enterprise (SME) policy. Migrant entrepreneurs do not only have a substantial impact on the urban economy, but they also act as role models for socio-economic integration. They often operate in interesting market niches and provide a positive stimulus for creative business-making in modern cities. The present article offers first an overview of the literature on this issue and investigates next empirically the economic performance of Turkish migrant entrepreneurs in the highly skilled and hightech sector in the Netherlands through the use of data envelopment analysis (DEA).