The rate of entrepreneurship shows considerable variation, not only between countries, but also between different populations within countries. This is especially true for immigrant populations. Many immigrants into The Netherlands originate from non-western countries, of which Turkey, Morocco, Surinam and The Netherlands Antilles are the main contributors.

For immigrants from Turkey, the rate of entrepreneurship is comparable to that of the native Dutch population. This sharply contrasts with the rate of entrepreneurship for immigrants from Morocco, Surinam and The Netherlands Antilles, which is less than half compared to that of the native Dutch population. This study examines possible causes for these differences in rates of entrepreneurship, focusing on demographical determinants such as age, education, gender, household composition and degree of urbanisation.

The immigrant populations from Turkey and Morocco are very similar regarding their demographical composition. They are on average least well educated, most often married, and most immigrants from these countries consider themselves Muslim. Immigrants from Surinam and The Netherlands Antilles are better educated, more familiar with the Dutch culture and language, and more often single (or are single parents). All immigrant populations have their relatively young age in common (as compared to the native Dutch population). Most immigrants of at least the age of fifteen are first-generation immigrants.

The relevance of differences in demographical composition depends upon the relationship between demographical variables and the rate of entrepreneurship. Our analysis indicates that - generally speaking - age, marital status, the number of children, the educational level and living in one of the four largest cities are positively related to the rate of entrepreneurship. Living in neighbourhoods with high population densities has a negative impact on the rate of entrepreneurship, and women are less likely to be entrepreneur than men are. Finally, first-generation immigrants are less likely to be entrepreneur than immigrants from the second generation are.

In addition to these general demographical effects, various immigrant contingency effects can be identified. These contingency effects indicate that the relationship between a specific demographical variable and the rate of entrepreneurship is different for immigrant group(s) than for the native Dutch population. Almost all identified immigrant contingency effects reduce the odds of immigrants being entrepreneur. In combination with the general demographical differences between the native Dutch population and the immigrant populations, this suggests that the rate of entrepreneurship will be higher for the native Dutch population than for the immigrant groups. For three of the four immigrant groups under consideration, this is indeed the case.

Download a PDF-version of this report