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Opinion

“Necessity” or opportunity? Why the label misleads

Research often sorts immigrant founders into those pushed into business and those pulled by opportunity. Real founders rarely fit either box.

The distinction between necessity- and opportunity-driven entrepreneurship is one of the most common ways of classifying founders, and it is especially common in research on immigrants.

It is also blunt. A founder can start a business because the labor market shut them out and because they spotted a gap no one else had filled. Motives change over time, too: a business started out of necessity can grow into an opportunity, and the reverse.

Treating the label as a fixed trait risks designing support for the category rather than the person.

A better question for policy is not why someone started, but what would help the business they have now to survive and grow.

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