Stigma and Immigrant Entrepreneurship: Black September, Ethnic Enclaves, and New Venture Performance

Abstract

Prior research on immigrant entrepreneurship has largely overlooked the difficulties faced by stigmatized immigrant groups and the strategies that such immigrant groups can undertake to improve new venture performance. To address this issue, we examine immigrant entrepreneurship in Jordan. We find that stigmatized immigrant entrepreneurs in Jordan are more negatively affected by government practices than native and non-stigmatized immigrant entrepreneurs. Moreover, we find that stigmatized entrepreneurs can partially mitigate these effects by founding their ventures in established ethnic enclaves where entrepreneurs can access brokers with social ties that can help overcome discrimination. Empirically, we examine this phenomenon using data on new venture performance of 8756 entrepreneurs in the Hashemite Kingdom of Jordan from 2003 to 2013 and supplemented with 60 qualitative interviews.