Mexico, a Country for Immigrant Business: Small-scale Entrepreneurs and Self-employed Workers from Southern Europe

Abstract

The article analyses the incorporation of a group of tertiary-educated entrepreneurs and self-employed workers from Italy and Spain into the labour market in Mexico. By investigating a highly-educated immigrant group, the article challenges the general perception of “ethnic” businesses being mainly managed by unskilled immigrants. Only a few of the interviewees had been involved in these activities before living in Mexico, so the article firstly explores the reasons why employees — in some cases, of large companies and international agencies — enter entrepreneurship. Secondly, the article analyses the opportunity structure available for immigrants by focusing on the market conditions, access to ownership and institutional framework in Mexico. Finally, the paper studies the relevance of social capital to understanding entrepreneurship among Southern European immigrants in Mexico. It is argued herein that their success in business and self-employment basically relies on their capacity to create social networks in the host society — social networks that are built/enlarged via an array of formal and informal channels which are facilitated by these immigrants’ status as “welcomed” foreigners.