Abstract
Immigration is a major force driving entrepreneurial dynamics that affect economic growth. In investigating the impact of immigration on entrepreneurship, this study focuses on how the presence of enclaves alters this relationship. I examine the impact of Polish immigration to Great Britain by exploiting the unprecedented migration wave caused by the European Union enlargement and by using a novel dataset on incorporations. The results indicate that immigration increases immigrant entrepreneurship, but this does not hold in existing immigrant enclaves. I also find that the blocked labor market in non-enclave areas encourages the birth of lower-quality, necessity-based firms.
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