Where to Start-Up? Immigrant Opportunity Entrepreneurs' Location Decisions

Abstract

We draw on sociology (ethnic enclave theory) and economics (location theory) to investigate immigrant opportunity entrepreneurs’ start-up location decisions. We used conjoint analysis to explore location decisions made by 79 highly-educated, first-generation immigrants with entrepreneurial intentions. Costs of doing business had a negative impact on location decision likelihood whereas government support positively influenced the likelihood to choose a location. Financial capital access moderated the relationships between costs of business and location decision likelihood. Furthermore, social network support moderated the relationship between government support and location attractiveness for these entrepreneurs.