Immigrant Micro Entrepreneurship: The Colombian Case in New York and New Jersey

Recent research on immigrant entrepreneurship has shown that immigrants are more likely to be necessity rather than opportunity entrepreneurs because they face situations of exclusion and a lack of human capital that pushes them towards entrepreneurship. At the same time, the theory about immigrants' social networks defends the importance of the cohesive power of immigrant networks and ethnic ties for immigrant business creation. The results of this case study challenge both stereotypes. Colombian micro entrepreneurs living in New York and New Jersey present high endowment levels and positive incentives for business creation that do not respond to blocked opportunities in the host country. Also, Colombians do not rely on social networks and community-based values of solidarity and ethnicity to grow their firms. Quantitative and qualitative methods were applied in this case study to analyze the entrepreneurial motives within the Colombian community that participated in ProMicro, an official program of the General Consulate in New York. The findings envisioned recommendations for further policies addressing the mobilization of resources for immigrant micro entrepreneurs.