Ecuador: return from migration and entrepreneurship in Loja

Abstract

Drawing on data from a survey of returning migrants, this study examines the factors behind the decision to launch a business in Loja, Ecuador. The possible explanations fall under various headings: demographic characteristics, work experience abroad, reasons for returning, current situation, intention to re-emigrate, and activity before, during and after migration. The study also considers different concepts of “entrepreneur”, as own-account worker and as employer. The results are analysed, first, using univariate tests and then estimating probit models. The variables most closely associated with a high probability of starting a business after returning from migration are entrepreneurial experience during the migration, and the fact of having returned voluntarily, as well as having worked in the host country in agriculture or the hospitality sector. Having university training and having worked in public administration before migrating are negative factors. Other influential variables are age and the wage or salary received abroad, but these are more nuanced.