Barriers and problems affecting immigrants' start-up activities

Even though immigrants have a higher propensity to start a business, we investigate if there are specific barriers and problems that negatively effect immigrants' start-up activities. The analysis of the regulatory framework conditions shows that specific professional qualification requirements with regard to craft trades liable to registration and various liberal professions restrain solely those immigrants who have acquired the necessary qualifications abroad. Their degrees are only acknowledged in a time-consuming and complex administrative procedure. Empirical analyses using the IfM Bonn Founder Panel show that immigrants and non-immigrants are mostly affected by the same restraints and problems. However, financing problems deter immigrants more often than non-immigrants from (quickly) realising their intention to start a new business.

Kay, R.; Schneck, S. (2012): Hemmnisse und Probleme bei Gründungen durch Migranten, in: Institut für Mittelstandsforschung Bonn (Hrsg.): IfM-Materialien Nr. 214, Bonn.

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