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01.06.2023 | Research article

Cultural diversity, social integration, and migrant entrepreneurship—evidence from the China migrants dynamic survey

verfasst von: Ping Zhang, Xin Wei, Guirong Mao

Erschienen in: Small Business Economics | Ausgabe 3/2024

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Abstract

Cultural diversity in host regions presents challenges for migrant entrepreneurs, such as resource competition and social conflicts. However, whether and how cultural diversity in the host regions affects migrants’ participation in entrepreneurship is not yet well understood. This study investigates the relationship by utilizing the China Migrants Dynamic Survey (CMDS) database and introducing food diversity as a novel proxy for cultural diversity. The logit regression analysis reveals that cultural diversity in host regions can reduce migrant engagement in entrepreneurial activities, especially in “self-employed” entrepreneurship. The results are consistent with several robustness tests. Additionally, a mechanism analysis based on a multi-path mediation model reveals that social integration, including factors such as social interaction, social exclusion, and social identification, plays a mediating role in this relationship. However, robust institutional environments can moderate the negative impact of cultural diversity on migrant entrepreneurship. This study provides a fresh non-market perspective for understanding and promoting cross-cultural entrepreneurial behavior.

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The data are from the Seventh National Population Census of 2020. China’s unique household registration (“hukou”) system provides an opportunity to identify the domestic migrant group. Members of this group have generally resided in the destination for more than half a year but have not officially changed their hukou (household registration) from their place of origin to their destination.

Population diversity primarily indicates the diversity of potential skills and knowledge available at a given time. For this reason, this study does not use population diversity as a measure of cultural diversity.

The website of Dianping: https://www.dianping.com/

Data source: http://travel.sina.com.cn/domestic/news/2017-05-12/detail-ifyfeivp5633138.shtml

Due to the limited data availability, previous studies based on the Chinese experience have often simply treated “self-employed workers” as “necessity-driven entrepreneurs”, while “employers” are seen as “opportunity-driven entrepreneurs”. However, inspired by the reviewer’s advice, we acknowledge the limitations of this approach. Some self-employed workers may also be motivated by market opportunities than just solving employment or survival problems. On that account, to maintain academic rigor, this paper classifies migrant entrepreneurs into “employer entrepreneurs” and “self-employed entrepreneurs”.

For example, “Chuan” cuisine, originating from Sichuan Province and Chongqing City, is famous for its spicy, while “Zhe” cuisine is known for its light taste.

The Marketization Index Report and the Business Environment Index Report were published by the Beijing Institute of National Economy.

The data on distribution entropy of cultivated land is retrieved from the Chinese land resource database of the Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Science. The database classifies cultivated land into five types: irrigated paddy fields, non-irrigated paddy fields, irrigable land, dry land, and vegetable fields. The distribution entropy of cultivated land is calculated based on the regions covered by the five types.

It is noteworthy that if the coefficient of cultural diversity were not significant in Column (2), then social interaction would have a complete mediating effect.

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Titel: Cultural diversity, social integration, and migrant entrepreneurship—evidence from the China migrants dynamic survey
verfasst von: Ping Zhang
Xin Wei
Guirong Mao
Publikationsdatum: 01.06.2023
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 3/2024
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-023-00791-1

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What microfinance schemes for women-owned microenterprises’ productivity in rural Benin?