Entrepreneurial Intention of Brazilian Immigrants in Canada.

AutorFalcao, Roberto Pessoa de Queiroz
CargoResearch Article

INTRODUCTION

Brazilian emigration has flowed overseas and increased since the 1980s (Castro & Castro Lima, 2018), with over three million Brazilians living abroad according to latest data released by the Brazilian Ministry of Foreign Affairs (Ministerio das Relacoes Exteriores, 2016). However, the numbers do not reflect the actual figure because the data are quite outdated and only include official immigration status while ignoring 'illegal' or irregular individuals.

Young immigrants who enter Canada tend to use tourist or student visas as an entry strategy. Indeed, the annual survey commissioned by the Brazilian Association Specialized in International Education (Belta, 2018) ranks Canada as the preferred exchange destination for Brazilians, and the country has led this ranking for 14 years in a row. The cities most sought after by Brazilians for English exchange are Toronto and Vancouver, while Montreal is the most sought for French exchange. Student immigration and skilled contingents of immigrants are welcome to Canada as a strategy to foster ethnic diversity and immigrant venturing (Boudreaux, 2020; Rauchle & Schmiz, 2019). Brazilian immigration studies date back to the 1990s, conducted by authors such as Sales and Loureiro (2004), Margolis (2013), and Cruz, Falcao, and Barreto (2017), who assessed immigrant trajectories, their businesses, and entrepreneurial strategies for local or co-ethnic clients.

Several factors explain the performance of entrepreneurs according to Lerner, Brush, & Hisrich (1997) and other authors: motivations and individual goals, social learning, affiliation networks, human capital, and environmental influences (Brockhaus & Horwitz, 1986; Hisrich & Brush, 1984). Regarding individual motivations and goals, there are psychological variables (Brockhaus & Horwitz, 1986), opportunities (Hisrich & Brush, 1984), or issues of self-esteem (Miskin & Rose, 1990). Recent research points to attitudinal and psychological traits as strong predictors of EI (Bell, 2019; Schoon & Duckworth, 2012; Taormina & Lao, 2007; Yukongdi & Lopa, 2017; for a literature review see Linan & Fayolle, 2015). Our research question is based on determining which sociodemographic and situational conditions are relevant to predict whether a Brazilian immigrant living permanently in Canada would possibly become an entrepreneur. Such variables are generally available in the census and/or regular immigrant panels, so our study aims to contribute both theoretically and managerially by using such variables as predictors of immigrants' entrepreneurial intention (EI; as opposed to attitudinal and psychological traits; see Li, 2001).

To answer our research question, a set of hypotheses was proposed based on previous evidence and the extant literature. These hypotheses were tested through the analysis of statistical data derived from surveys, specifically logit equations including variables such as gender, age at arrival, level of education, and time spent abroad until the time of the survey; visa status upon arrival (student, work, or tourist); and citizenship claim status or permanent migration. The results point to several factors with a positive influence on the intention to undertake entrepreneurial activities in Canada: age upon arrival, time spent in the country, intention to venture, and gender (female). Factors such as level of education, work visa or tourist visa, and permanent migrant status, in turn, had a negative influence. The contributions of the paper include the use of common sociodemographic and situational variables as predictors, which might be useful as input for public managers to design immigrant venturing policies.

THEORETICAL BACKGROUND

Brazilian immigration and assimilation in the Canadian society

In general, the desire of most immigrants is to build a better life (Borjas, 2017). Indeed, certain elements are crucial to understanding immigration: first, motivation, related push and pull factors, and repulsive and attractive causes; second, the duration of migration, either temporary or permanent; third, the space, internal (within a country) or external (abroad); fourth, the form, whether voluntary or forced; fifth, the control, either through legal or clandestine entry (Menezes, 2012); and finally, the assimilation of these newcomers (Alba & Nee, 2012).

Cultural assimilation of immigrants in host societies has been a controversial theme of research since the 1960s (Gordon, 1961) and has remained a central issue of debate involving sociological aspects. Alba and Nee (2012), for instance, present the melting pot theory based on previous seminal authors; this is the idea of a complete assimilation of cultures melting natives and immigrants, generating a nation made up of a completely new people, eventually affecting posterity (Gloor, 2006). Several other theories and concepts are proposed, particularly the salad bowl or salad pot, or the theory of cultural mosaic (Mahfouz, 2013). Unlike the melting pot, the salad bowl proposes that several ethnicities (or cultures) remain distinct and do not merge into one homogeneous society. Immigrants are partially assimilated into the host societies' culture, but at the same time maintain certain practices from their old world (Mahfouz, 2013). Some of them, however, choose to live a marginal life in ethnic enclaves where they can keep their culture almost entirely intact (Mata, 2007).

In this sense, Portes and Zhou (1992) have posited that traditional theories about ethnic poverty and economic mobility do not respond satisfactorily to the current situation of many migrants. This means that issues surrounding the legality of work, permission to stay in the country, and access to social assistance services are the elements that make up the polemics of this legal reality. This reinforces the necessity of a multilayered analysis, including theories and analytical lenses from different perspectives such as anthropology, sociology, geography, urban studies, and entrepreneurship, as well as the use of different methods of data collection and analysis (Etemad, 2018).

Historically, immigration from Brazil to Canada is not a new phenomenon. Brazil was the passage route to Canada for several Europeans settlers, such as Irish, Polish, Portuguese, and Gypsies, who immigrated to the Americas (Barbosa, 2016) in the 19th and 20th centuries. During the Brazilian military regime in Brazil, installed after the 1964 military coup, another migratory wave of Brazilians contained those who went into exile overseas. Canada was also the destination for some of these Brazilians, including three prominent intellectuals, Paulo Freire, Florestan Fernandes, and Herbert de Sousa, who remained there for a short period (Barbosa, 2016).

In the late 1980s, a considerable number of Brazilians immigrated to Canada, with the main reasons for this diaspora spread being the economic and political distress of the so-called 'lost decade' (Goza, 1999). This phenomenon was similar to the diaspora that occurred in the United States made up of those originating from Governador Valadares, in the state of Minas Gerais (Sega, 2018). During the 1990s, the migratory wave continued to swell, but was still influenced by push-pull factors, such as the Brazilian economic and political crises and the search for job opportunities and welfare in Canada (Goza, 1999). Recently, in the 2000s, despite Brazil experiencing a period of steady economic growth, documented migration increased among individuals with a stronger educational background and professional qualifications, mostly from the Sao Paulo metropolitan area, with Toronto being their destination of choice (Sega, 2018). This is part of a trend that continued to grow from the 1990s and after (Sega, 2018) helped by globalization. Schervier (2005) also mentions that Canada has been an important destination for Brazilian migration, particularly due to its broader state of security, compared to Brazilian insecurity. Considering official statistics of the Brazilian Foreign Affairs Department, the number of Brazilians in Canada at the time was already estimated at 39,300 (Ministerio das Relacoes Exteriores, 2016), including members of the Brazilian upper middle class residing in Canada for decades and with strong ties to the Canadian elite, middle-class individuals with secondary education, and informal sector workers (Margolis, 2013). Brazilian immigration to Canada has thus grown especially since the 1990s, not only due to economic insecurity in Brazil, but due to a wider state of social insecurity (Sega, 2018).

Thus, it is recognized that Canada has used immigration as an instrument to promote demographic diversity and economic growth, but it is noteworthy that the country's current immigration policy has focused on attracting highly qualified immigrants, especially in sectors lacking manpower, due to Canada's greater insertion in international trade and minor focus on developing a large domestic market (Fraga, 2018). However, within the context of small and medium-sized Canadian companies, there is a relevant social and cultural diversity (Gulati, 2012). Compared to the non-skilled immigration, which has occurred in certain areas of the US (e.g., in Massachusetts and Florida; Margolis, 2013; Sales & Loureiro, 2004), Canada is especially recognized for adopting multiculturalism as a state policy (Cameron, 2004). Despite that, the migratory phenomenon is still permeated with social tensions caused partially by barriers to entry into the labor market (Fraga, 2018). Language is an issue, because the country has adopted two official languages (English and French), which makes it even more difficult for non-skilled immigrants to enter the labor market (Fraga, 2018). Another barrier to the settlement of immigrants is the need for 'Canadian work experience,' which affects the acquisition of bank loans and the chances of getting a job in Canada (Li, 2001). These...

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