Università degli Studi di Ferrara Italy’s new immigrant entrepreneurship: The paths of development of this new phenomenon Applied Economics and Economic Policy Cycle XXIV by Haya Al Shawwa Supervisor: Professor Lucio Poma 2009-2012 TABLE OF CONTENTS ABSTRACT ................................................................................................................................... 8 Methodology ......................................................................................................................... 9 INTRODUCTION ...................................................................................................................... 11 CHAPTER ONE: A THEORETICAL FRAMEWORK OF INTERNATIONAL MIGRATION ............................................................................................................................... 14 1.1. Migration and migrants: distinctions and definitions......................................................... 14 1.2. Crucial transformations in international migration history ................................................ 16 1.3. Patterns of international migration today ......................................................................... 22 1.4. The Italian migratory context .......................................................................................... 27 CHAPTER TWO: INTERNATIONAL LITERATURE ON IMMIGRANT ENTREPRENEURSHIP ........................................................................................................... 33 2.1. Ethnic entrepreneurship and immigrant entrepreneurship: Concepts and definitions ................ 33 2.2. Transformation of the labor market: A shift towards entrepreneurship ............................. 36 2.3. Theoretical approaches of immigrant entrepreneurship: Structural vs. Cultural .................. 38 Cultural approach ................................................................................................................ 41 Structural approach ............................................................................................................. 44 Mixed embeddedness ............................................................................................................ 46 2.4. Models of immigrant entrepreneurship ............................................................................ 47 Mixed embeddedness model, Kloosterman. R. ............................................................................. 47 Interactive model (Waldinger and associates, 1990) ...................................................................... 56 Towards a profit -seeking and operational model ......................................................................... 59 2.5. Types of immigrant enterprises and entrepreneurs ........................................................... 63 2.6. New lines of research of the multi-faceted phenomenon ................................................. 66 CHAPTER THREE: IMMIGRANT ENTREPRENEURSHIP IN ITALY ............................ 71 3.1. The evolution of immigrant entrepreneurship in Italy: Theoretical and Statistical overview ....... 71 Immigrant entrepreneurs ......................................................................................................... 72 Immigrant enterprises ............................................................................................................ 78 3.2. Economic impact arising from immigrant entrepreneurship ............................................. 93 2 3.3. Immigrant entrepreneurship placement in the Italian business system ..............................103 3.4. Immigrant entrepreneurship policy approaches in Italy ................................................... 111 CNA World-Dedalo: The Turin Model................................................................................... 113 CNA World services across the territory ................................................................................... 116 Start it up Project................................................................................................................ 118 Financial and Banking Policies .............................................................................................. 118 Innovative Policies - Talea Summer School (2010-ongoing) ........................................................... 124 Italian Integration Portal ..................................................................................................... 124 Good practices in the promotion of ethnic minority entrepreneurs ..................................................... 126 CHAPTER FOUR: CHINESE ENTREPRENERUSHIP IN THE TEXTILE- CLOTHING INDUSTY: RECENT TRENDS AND FUTURE CHALLENGES ................. 131 4.1. China’s role in the TCF industry at global level ............................................................... 131 4.2. Introduction to the TCF industry in Italy .......................................................................138 4.3. Case-study: The evolution of Chinese textile, clothing and leather enterprises in the province of Ferrara 140 The sample and methodology ..................................................................................................... 140 Enterprises ........................................................................................................................... 140 Employees ............................................................................................................................ 144 Natives and Immigrants: Italians and Chinese .............................................................................. 150 4.4. Empirical implication of theoretical models ................................................................... 169 CONCLUSIONS ........................................................................................................................ 175 REFERENCES .......................................................................................................................... 178 APPENDICES ........................................................................................................................... 187 3 Table of Figures Figure 1 Total international migrants ......................................................................................... 23 Figure 2. The Demographic transition model (DTM), by the American demographer Warren Thompson, 2009 ...................................................................................................................... 27 Figure 3. Trend of immigrants in Italy, 2002-2010 (absolute values and annual variations) ............ 28 Figure 4. Immigrants in Italy subdivided by gender (absolute values), 2002-2010 ......................... 29 Figure 5. Trends of the age of immigrants in Italy (absolute values), 2002-2010. .......................... 30 Figure 6. Immigrants in Italy by country of origin (absolute values), 2002-2010 ............................ 31 Figure 7. A typology of markets according to accessibility and growth potential, Kloosterman R. 48 Figure 8. Interactive model of ethnic entrepreneurship development .......................................... 56 Figure 9. Factors that determine entrepreneurial migration. ........................................................ 61 Figure 10. Number of immigrant entrepreneurs in Italy, 2000-2008. ............................................ 73 Figure 11. Number of non EU entrepreneurs by sector of activity, 2000-2008, followed by percentage values. .................................................................................................................... 73 Figure 12. Percentages of non EU entrepreneurs by sector of activity, 2000-2008. ....................... 74 Figure 13. Non EU immigrant entrepreneurs by age .................................................................. 74 Figure 14. Foreign and Italian population (15-64 years) by educational attainment and gender year 2009 (percentage composition. ................................................................................................. 76 Figure 15. Foreign and Italian population (15-64) by educational level and geographic location, year 2009. ....................................................................................................................................... 77 Figure 16. Sole proprietorships with an immigrant non EU owner , 2000-2009. ........................... 79 Figure 17. % share of immigrant-owned enterprises of total, 2001-2010. .................................... 80 Figure 18. Percentage variations in the number of individual enterprises (foreign and Italian). ...... 81 Figure 19. % of non EU nationality of sole proprietorships, 2010. .............................................. 81 Figure 20. % of sole proprietorships immigrant-owned enterprises by Region 2000/2005/2008/2009. ............................................................................................................ 83 Figure 21. % variations in the number of immigrant-owned individual businesses in the Italian regions. .................................................................................................................................. 84 Figure 22. Economic sectors of immigrant enterprises (2000/2005/2009) .................................. 88 Figure 23. % of women immigrant entrepreneurs/total (2010). ................................................. 90 Figure 24. absolute and % female immigrant-owned enterprises of total ...................................