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Cultural diversity and entrepreneurship: Evidence from England and Wales

Rodríguez-Pose, Α. & Hardy, C. D. (2014) “Cultural diversity and entrepreneurship: Evidence from England and Wales“, VoxEU Organisation, 04 Δεκεμβρίου.

 

Cultural diversity is increasing globally. This column examines diversity from the point of view of entrepreneurship. It demonstrates that cultural diversity breeds entrepreneurship – but the nature of the diversity is critical. Recent migrants, rather than the descendants of past migrants, create the conditions for a more dynamic entrepreneurial environment. This effect is most clearly substantiated in terms of knowledge-intensive start-ups.

Immigration is making regions noticeably more diverse and has become one of the major policy issues of the 21st century. In the UK alone, the foreign-born population has expanded by more than four million in the last two decades (making up more than 15% of the working-age population). What’s more, immigration is more diverse than ever. No longer strictly about Mexicans in Los Angeles, Turks in Berlin, or Romanians in Milan, immigration debates in cities and regions now concern more people from more places than ever before.

Naturally these changes have led to a surge in interest and concern. Most of the social and political unease relates to the increasing presence of minorities in regions, particularly when predominantly low skilled. Immigration is also beginning to invigorate interest into the economic impacts of diversity. Our working paper focuses on entrepreneurship, which taps into the Europe-wide government interest in new start-ups to drive post-recession growth and close the entrepreneurial performance gap with front-runners like the US (Rodríguez-Pose and Hardy 2014).

 

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