Migrant Entrepreneurship and Enclave Economies in Urban China

This paper explores migrant entrepreneurship and the development of enclave economies in urban China. As China rapidly urbanizes, millions of rural migrants move to cities seeking better economic opportunities but face significant barriers, such as limited access to formal employment, social services, and integration into urban society. In response, many turn to entrepreneurship, creating vibrant enclave economies that serve both migrant and broader urban populations.

The study employs a mixed-methods approach, combining quantitative data analysis with qualitative fieldwork in migrant enclaves in Guangzhou and Shenzhen. It examines the types of businesses migrants establish, the factors driving entrepreneurial activity, and the economic and social impacts of these businesses on migrant communities and the urban economy. Key factors influencing migrant entrepreneurship include access to financial resources, social networks, the regulatory environment, and new market opportunities from the platform economy.

Findings reveal that migrant entrepreneurs often leverage their unique social capital to create niche markets, such as kitchens and warehouses for delivery platforms and online stores. These enclave economies provide essential goods and services, create employment opportunities, and foster a sense of community among migrants. However, the study also highlights challenges such as limited business scalability, competition with local entrepreneurs, and vulnerabilities to economic fluctuations and regulatory changes, especially amid the Covid-19 pandemic.

The paper argues that migrant entrepreneurship is crucial for the economic integration of migrants and the dynamism of urban economies in China. It calls for policies that support migrant entrepreneurs through improved access to finance, training programs, and more inclusive regulatory frameworks. By fostering a supportive environment for migrant entrepreneurship, urban societies can harness the full potential of their migrant population, promoting more inclusive and more just economic growth.