Entering self-employment as opportunity-driven entrepreneurship: evidence from ethnic enclaves in the United Kingdom

Abstract

Purpose This study aims to examine the entry of ethnic minority groups into opportunity-driven self-employment in the United Kingdom (UK) through the lens of ethnic enclave theory. In doing so, it challenges the dominant view in this stream of inquiry, which posits that such entrepreneurship is primarily driven by necessity, by highlighting the role of ethnic enclaves in shaping entrepreneurial transitions. Design/methodology/approach A quantitative approach using comprehensive UK household data is adopted to analyse the relationship between ethnic enclaves and self-employment transitions, thereby advancing the predominant case-study-based approach in this field. Findings The findings confirm that ethnic enclaves promote the transition of ethnic minorities into opportunity-driven self-employment in the UK; the degree of this impact varies across ethnic groups and depends on individual-level factors, such as prior entrepreneurial experience and skill sets. These results demonstrate that enclaves can serve as incubators for opportunity-driven ventures and highlight the interplay between ethnic actors and their immediate contexts. Originality/value By empirically identifying opportunity-driven self-employment within enclaves, this study extends the scope of ethnic enclave theory beyond survival-oriented venturing, reframing enclaves as contexts that can foster growth-oriented entrepreneurship. It offers new insights into the interplay between ethnic enclaves and entrepreneurial agencies, discussing how enclave structures can facilitate business entry for ethnic minorities under specific conditions.