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Ethnic entrepreneurship can be an alternative economic strategy among immigrants whose labor market opportunities in the host society are hindered by language deficiency, institutional constraints or racial discrimination. However, it can also constrain migrants’ social economic mobility. This is especially likely when, with particular visa policies, ethnic business is appropriated as a channel for labor migration, trapping migrants in a narrow economic niche. Excessive concentration in one type of business leads to low road competition within the community and co-ethnic exploitation. This study uses the case of Nepalese immigrants’ restaurant businesses in Japan to illustrate this pitfall of ethnic entrepreneurship. It highlights the roles of the immigration regime and the migration industry in creating such a condition.

Visa policies, migration industry and the ethnic entrepreneurship trap: the case of Nepalese restaurant businesses in Japan