Aspiring Migrant Entrepreneurs in Germany—Potentials and Pitfalls in the Start-Up Process

Research question/goal: 

Previous studies have shown that migrant entrepreneurs are a valuable contribution to the economy of their host countries. Furthermore, self-employment is a means for migrants to achieve upward social mobility. However, a number of formal and informal hurdles must be overcome to become self-employed, which often prevent migrants from fully developing their potential as entrepreneurs. In this study, we apply a mixed-methods approach (qualitative interviews with institutional and financial experts as well as migrant entrepreneurs and a quantitative analysis of survey data) to examine the potential of migrant entrepreneurs in Germany and the specific problems they are facing in the start-up process.

Current stage: 

In 2023, we mainly worked on a systematic review of articles on possible differences in the treatment of individuals and entrepreneurs by financial institutions of all kinds. In the review of about 130 relevant papers, we saw evidence of possible discrimination against minorities, migrants, and female entrepreneurs in many places. Another result of the literature review is that authors have mainly used survey and qualitative data, so that in many cases it remains unclear whether discrimination really takes place. After finishing the literature review, we will therefore examine the lending and borrowing practices of German financial institutions with (field) experiments.

Fact sheet

Funding: 
MZES
Duration: 
2019 to 2024
Status: 
in preparation
Data Sources: 
Field experiments, interviews
Geographic Space: 
Germany, with possible extension to other European countries later

Publications