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Purpose

The purpose of this paper is to investigate the markets in which immigrant entrepreneurs are active and to examine whether these differ between first‐ and second‐generation immigrants.

Design/methodology/approach

Information was gathered from 252 in‐depth interviews with first‐ and second‐generation immigrant entrepreneurs in The Netherlands.

Findings

The results of this paper show that the second generation are more active in mainstream markets and entrepreneurs move from one market to another by the strategic use of ethnicity.

Originality/value

The more traditional literature on immigrant entrepreneurship gives the impression that immigrant entrepreneurs are mainly active in an ethnic or a middleman market. However, the paper demonstrates that this is no longer the case for second‐generation immigrant entrepreneurs who were born and/or raised in the receiving society. Furthermore, it reveals the dynamic character of immigrant entrepreneurship by examining the first and second generations.

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