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

Plain English SummaryMelting Pot or Barrier? How does Cultural Diversity in Host Regions Hinder Migrant Entrepreneurship? This study examines how the cultural diversity of a host region affects migrants' likelihood of starting a business, using "food diversity" as a novel proxy for cultural diversity. This study found that regions with greater cultural diversity tend to have lower rates of domestic migrants engaging in entrepreneurial activities. The study suggests that this negative impact is due to difficulties in social integration. However, the study also suggests that a robust institutional environment can mitigate this negative effect. This paper introduces acculturation theory as a framework for analyzing the relationship between the cultural landscape of host regions and migrant entrepreneurship. This approach offers a novel perspective on cross-cultural entrepreneurial behavior and suggests new policy implications for promoting cultural integration and the business success of migrant communities. 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.