Where do refugees start up? Industry skills, size and ethnic concentration

This study theorizes ethnic industry segmentation among refugee entrepreneurs and operationalizes industry-specific opportunity structures to highlight the role of ethnic networks in shaping entrepreneurial opportunities. Using longitudinal administrative data from Statistics Sweden (2010–2020) and panel regression analyses, it shows that co-ethnic industry concentration predicts refugee entrepreneurial entry into both self-employment and incorporated business, while for immigrants overall it discourages self-employment. Relative to other immigrants, refugees more often incorporate in expanding, technically skill-intensive industries, and are deterred from self-employment where social skill requirements are high. Education enhances immigrant but not refugee entrepreneurship, indicating divergent mechanisms of opportunity access. Refugees are more likely to start incorporated businesses in expanding industries of higher technical skills requirements. The gender gap in incorporated entry is narrower among refugees. Policy implications emphasize the importance of investing in integration initiatives to enhance refugee entrepreneurs’ access to higher-growth industries.