Andrea Lasagni

In most of the literature, immigrant-owned firms are perceived as being “different” from those owned by natives. Some recent evidence suggests that this distinction is not always clear-cut. This paper aims to analyze the similarities and differences between immigrant-owned SMEs and native-owned firms by comparing the economic, financial, and organizational variables at the firm level. The research is based on a large database of partnerships and private limited companies (micro and very small enterprises are excluded). A matched-pair analysis was performed to assess the presence of significant differences between entrepreneurial ventures owned by immigrants and those owned by natives. This approach makes it possible to obtain a suitable sample for a “controlled” comparison between the firms in our sample. Unlike the previous results obtained for firm size, industry, and geography, we found that proxy values for efficiency, capital intensity, and profitability for immigrant-owned SMEs are not significantly different (or lower) from those owned by natives. Migrant ventures have demonstrated the ability to leverage bridging skills to enter foreign markets. In addition, more advanced migrant companies have narrowed the gap with native firms and show similar characteristics in terms of financial structure and performance.