Immigrant Entrepreneurship and Economic Adaptation: A Critical Analysis

Objective: The main goal of the article is to discuss the theoretical relationship between immigrant entrepreneurship and immigrant’s economic adaptation. Research Design & Methods: The paper reviews the theoretical and empirical literature on immigrant entrepreneurship and economic adaptation of immigrants in a host country. Then the paper develops testable propositions and a theoretical model for future empirical research on this topic. Findings: The paper describes three main potential outcomes of immigrant economic adaptation through entrepreneurship: segmented assimilation, transnationalism and provisional business project strategy. Implications & Recommendations: Understanding the factors that contribute to adaptation of immigrant entrepreneurs is crucial from policy-making perspective, as immigrant entrepreneurship is increasingly promoted as a viable strategy for economic adaptation for new immigrant groups in major host countries. Contribution & Value Added: The theoretical relationship between immigrant entrepreneurship and economic adaptation remains underaddressed in the literature. Thus, the paper contributes to the knowledge on economic adaptation of immigrants, by proposing a model of immigrant entrepreneurship evolution and development. The model stresses interrelations between immigrant entrepreneurship and economic adaptation.