Immigrant entrepreneurs

The number of created jobs in most cases is also very similar — 86% of self-employed from the local population and 87% of self-employed immigrants hire less than 10 people. The difference in the intensity of entrepreneurial activity is observed among groups of migrants — immigrants from different countries of the world. For example, someone’s business has 32.9% of immigrants from Korea and only 3.

0% of immigrants from Haiti. As one of the explanations for such differences, the researchers cited two models of migration — family and non-family. Those who immigrated to USA with family are more likely to start their own business, contribute to the development of trust in family and unpaid work of its members. Those who came alone find employment and send earnings to their families. The modern migration situation is characterized by a high regional concentration of immigrants from one country. According to the Bureau of the census, in 2008 immigrants accounted for 11.

5% of thewhole population. In elevenstates, the share of immigrants in the population exceeded the national average figure. The first place among allstates with the share of immigrants in the total population above the average took California (26.2%). Characterized by their ethnic composition, 44.

3% of immigrants were from Mexico (with 42.

8% of the total number of immigrants from Mexico in the USA), and 7.

5% from the Philippines and 4.

7% from Vietnam. The second place by the share of immigrants in population size was taken by Florida. Here, almost 24,1% of visitors were immigrants from Cuba (73.

7% of the total number of Cuban immigrants to USA) and 7.

1% from Mexico and 6.

8% from Haiti. L argely regional and national distribution of immigrants is determined by the desire of immigrants to the mutual assistance and support, as well as climatic conditions, as in the southern States that are major recipients of immigrants, climatic conditions similar to the climate of source countries of migration. For a more detailed study of entrepreneurial activity of immigrants, we used data obtained from monitoring the business of the two companies — Motel and a company selling equipment and supplies for motels owned by Indian Diaspora («Patel»).The study showed that, rather than market mechanisms informal social institutions also play a decisive role in the development of entrepreneurship of immigrants. T he surveillance revealed the following mechanism of support and mutual assistance in the community: newly arrived immigrants livewith the support of relatives who work for free for the members of the community and then receive financial support to start their own business. T.

his model of ethnic economy is defined in the literature as enclave («enclave economy»).In the management of their own business, immigrants continue to use social ties. F or example, without good education and necessary for business level of English, Indian immigrant entrepreneurs hire Indian immigrants-professionals to handle accounting documentation, registration of tax documents, negotiating. The fact that immigrant entrepreneurs, in this case from India, build business on personal relationships and prefer to cooperate, obstructs the entry into the business of local entrepreneurs. O.

pening the company for the sale of products for motels, the last one is unlikely to find buyers because the owners of hotels, mostly among the Indian Diaspora, are more likely to buy supplies from their former compatriots. T he purchase of a motel or hotel, even in the presence of a developed market loans are not affordable to every American who wants to open his own business. W hile immigrants from India, with the support of the Diaspora, start a business with a much higher starting capabilities. The restriction of competition in itself indicates a decline in economic efficiency in the sphere of activity, where entrepreneurs-immigrantsareactive. H.

owever, there are some circumstances that reduce this efficiency. B usiness owners were succeeded to observe quite low levels of education and training (although, of course, the same cannot be said of all the immigrants from India).Accordingly, their business is not well organized, causing the dissatisfaction of employees and customers. H owever, this is inefficient and unprofitable businesses supported by the community with the aim of preserving its entrepreneurial clusters. I.

n the case of bankruptcy, the community finds a new «owner», helping him to restore the proceedings. During observation it was noted that in both companies, many financial transactions are not reflected in accounting documents and, accordingly, not taxed. F or example, calculations with the maids in the hotel were made in cash, without paperwork, even the maids were not formalized at work. T hese data confirm the findings of other researchers that one of the factors that influence the choice between salaried work and self-employment in favor of the latter, is the ability to avoid paying taxes, and that the proportion of self-employed migrants is higher in those states where taxes are higher, and employment, respectively, is more profitable. Despite the fact that entrepreneurs-immigrants do create jobs, most employees (maids at the hotel, porters in a trading firm, etc.) do not have any socio-economic guarantees. T.

his is facilitated by two circumstances. F irst, these jobs are held primarily by immigrants, mostly from Latin America, including many «illegals». Secondly, some states, where mentioned studies were conducted, are the poorest in the United States with a rather high unemployment rate (6.3% compared with the average 6% in the U.S.). Local populationwith no education and qualifications isaffected by the high unemployment rate especially. As a result, haven’t found permanent job, people agree to perform unskilled low-paid work in part-time employment. T.

he income they receive, is mostly of a shady nature. D espite this, discrimination in wages of the local population or immigrants is noted in the study. ConclusionsOverall, the performed analysis of entrepreneurship of immigrants disproves the idea that immigrants are greater prone towards entrepreneurshipthan the local populationbut also shows that immigrants can negatively affect the entrepreneurship of the local population. N.

ewcomers tend to create a specific model of ethnic enclave economy, which could have a negative impact on the labor market and the development of entrepreneurship of the local population, especially in the regions with the mass influx of immigrants from the same country. A mong the negative consequences of entrepreneurial activities of immigrants a reduction in economic efficiency and limit competition, tax evasion, declining quality of employment could be mentioned. List of referencesBorjas G., Freeman R., Katz L. How Much Do Immigration and Trade Affect Labor Market Outcome? — I n: Brookings Papers on Economic Activity, Vol. 1. — W.

ashington DC: Brookings Institution Press, 2007. -P. 64−92.Camatota S. The Labor Market Impact of Immigration // A Review of Recent Studies. — W ashington DC: Center for Immigration Studies, 2008. Fairhe R., Bruce D. T he Effect of Immigration on Native Self-Employment. — I.

nstitute for Policy Research at Northwestern University, 2000. McCarthy K., Vernez G. Immigration in a Changing Economy. — S anta Monica: RAND, 2007. Wilson K. Immigrant Enclaves: Analysis of the Labor Market Experience of Foreigners in Australia // The Australian Journal of Sociology. — 2000.

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