The role of migration in shaping entrepreneurship

Purpose This study aims to investigate the relationship between migration and entrepreneurship development. Further, it aims to understand from which regions migrants are more prone to engage in entrepreneurial activities in Europe. Design/methodology/approach The sample consists of 21 countries within the year range of 2006–2019. Data is formed as a panel data set and obtained from various established databases. Entrepreneurial activity is reflected by the rate of newly registered businesses, the new business ownership rate and the established business ownership rate, depending on the model. An econometric model is developed and estimated for each dependent variable with the robust fixed effects approach. Findings Migration is found to be positively related to the development of entrepreneurial activity. The empirical research also finds other variables influencing entrepreneurship, such as GDP per capita (positive), fixed broadband subscription (positive) and control of corruption (positive). In addition, this study finds that immigrants from Asia are more prone to engage in entrepreneurial activities. It also finds certain relations between immigrant stock from other regions and the development of entrepreneurial activities. Originality/value This study delivers a cross-country perspective on the role of migration inflows in entrepreneurial activity development and thus contributes to the international body of knowledge on the role of migration in shaping entrepreneurship. The provided evidence is unique in combining several approaches towards measuring entrepreneurship at the country level, thus enhancing the earlier research’s replicability.