Chinese microentrepreneurs in industrial cluster in Italy: analysis of the ethnic microenterprises’ performance

Abstract

Purpose This paper aims to investigate the distinctive economic and social dynamics of ethnic quasi-enclave industrial sub-clusters and to econometrically analyse the main factors affecting the economic performance of Chinese-migrant microentrepreneurs with a specific focus on social capital. Design/methodology/approach An interpretative framework that encompasses sustainable local human development and mixed embeddedness is applied to a case study of Wenzhounese migrant socioeconomic quasi-enclave leather industrial sub-clusters located adjacent to the industrial district area of Florence, Italy. Given the complexity of the phenomenon, the research study adopted a mixed-method approach encompassing both qualitative and quantitative methods. The econometric analysis was based on data collected via a survey administered to a random sample of enterprises. Findings Ethnic social capital plays a central role in ethnic entrepreneurship. The results confirm the relevance of social networks in the context analysed and reveal the importance of ethnic and non-ethnic business social capital as one of the main factors affecting enterprise’s economic performance. Practical implications The findings propose potential policies to upgrade the ethnic enterprises especially in terms of increasing their formality and inclusion in the Italian social and economic systems of production. Originality/value This analysis contributes to existing literature on migrant entrepreneurship and communities, adding new evidence related to ethnic enterprises and the importance of social capital in terms of performance and working conditions of the community of entrepreneurs.