---
title: "Immigrant Entrepreneurship in Finland"
authors:
  - name: "Fornaro, Paolo"
date_published: "2018-09-13"
series: "ETLA Raportit - Reports"
series_number: "83"
issn:
  - "2323-2447"
  - "2323-2455"
jel_codes:
  - "J24"
  - "J61"
  - "M13"
language: "en"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-83.pdf"
keywords:
  - "Immigrants"
  - "Self-employment"
  - "Earnings differentials"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-83"
abstract: "Immigrant entrepreneurship is the subject of a prolific economic literature, as well as a source of wide public debate. This is because the participation of immigrants to the business community can provide a significant contribution to innovation and to market dynamics. This report touches multiple aspects of immigrant entrepreneurship in Finland, looking at the years from 2006 to 2014. I find that while the number of self-employed immigrants has increased dramatically, the entrepreneurial rate has been stable. Moreover, the immigrant self-employment rate is similar to the one of natives. I find that the median earnings of foreign entrepreneurs are lower than the ones of Finnish entrepreneurs, but this is driven by the different industry distribution. Finally, I find an overrepresentation of foreign workers and entrepreneurs in the Helsinki region, while the immigrants’ self-employment rate is higher in poorer areas. I gather multiple evidence pointing toward the fact that difficulties in the job market push foreign residents to self-employment. For example, I find a negative correlation between the employment rate and the foreign share of entrepreneurial inflows, and a strong negative relationship between the employment rate and the immigrant self-employment rate at the regional level."
---

# Immigrant Entrepreneurship in Finland

**Published:** 2018-09-13  
**Categories:** Publikationer, Rapporter  
**URL:** https://www.etla.fi/sv/publikationer/immigrant-entrepreneurship-in-finland/

#### Abstract

Immigrant entrepreneurship is the subject of a prolific economic literature, as well as a source of wide public debate. This is because the participation of immigrants to the business community can provide a significant contribution to innovation and to market dynamics. This report touches multiple aspects of immigrant entrepreneurship in Finland, looking at the years from 2006 to 2014.

I find that while the number of self-employed immigrants has increased dramatically, the entrepreneurial rate has been stable. Moreover, the immigrant self-employment rate is similar to the one of natives. I find that the median earnings of foreign entrepreneurs are lower than the ones of Finnish entrepreneurs, but this is driven by the different industry distribution. Finally, I find an overrepresentation of foreign workers and entrepreneurs in the Helsinki region, while the immigrants’ self-employment rate is higher in poorer areas.

I gather multiple evidence pointing toward the fact that difficulties in the job market push foreign residents to self-employment. For example, I find a negative correlation between the employment rate and the foreign share of entrepreneurial inflows, and a strong negative relationship between the employment rate and the immigrant self-employment rate at the regional level.

---

## Additional Information

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-83.pdf

**Kirjoittajat:** Fornaro, Paolo

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-83-kansi.jpg

**Key Words:** Immigrants, Self-employment, Earnings differentials

**Jel:** J24, J61, M13

**Paivays:** 13.09.2018

**Sivuja:** 16

**Kieli:** en

**Sarja:** ETLA Raportit - Reports

**Sarja Nro:** 83

**Issn:** 2323-2447, 2323-2455 (Pdf)

**Saatavuus:** 2

Printtiversion voi tilata s-postitse osoitteesta tilaukset@taloustieto.fi

**Publication Research:** No

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