Immigrant entrepreneurs in the tourism industry: exploring their contribution to co-ethnic communities

Abstract

This essay focuses on studying the enclave strategy in the context of tourism firms founded by immigrant entrepreneurs—that is, the selection by the immigrant entrepreneur of a business model that is based on a value chain dominated by compatriots—as well as on some of the consequences of such a strategy. In particular, considering the potential relevance of such a strategy for advancing numerous SDGs (e.g., Zero poverty, Good health and wellbeing, Decent work and economic growth, Reduced inequalities), we explore its impact on the contribution of immigrant entrepreneurs’ businesses to the wellbeing of their co-ethnic community. To test the hypothesis, we used a sample of 159 immigrant entrepreneurs living in the Canary Islands (Spain) who had set up a tourism firm. Different from previous literature that considers the selection of the enclave strategy as a single decision, we found that two different dimensions of such a strategy must be differentiated in the case of tourism firms: (1) the enclave strategy in terms of ‘supply sources/product offered’, and (2) the enclave strategy in terms of ‘target market’. We also found that the use of either of these two dimensions allows immigrant entrepreneurs to contribute more to the wellbeing of their co-ethnic communities.