Ethnic Minority Entrepreneurship Research Articles

The promise of entrepreneurship ecosystems: a conceptual model for black American entrepreneurs

PurposeThe purpose of this paper is to set forth a conceptual model describing the actors and roles in ecosystems created to enable productive black entrepreneurship in the USA.Design/methodology/approachThis paper provides a systematic literature review of entrepreneurship ecosystems. It further leverages such literature review by using an autoethnographic approach recommended by Guyotte and Kochacka (2016), drawing on the authors’ practical experience in studying, owning, educating or consulting employer businesses owned by persons of color in the USA and abroad.FindingsEach actor in the ecosystem has practical wisdom and assets that can be shared and leveraged through interacting with the other actors either as role model institutions or capacity development institutions, thus mitigating social inequalities and boosting economic progress by extending entrepreneurial opportunities beyond those that are greatly resourced.Research limitations/implicationsOur literature review is based on selected samples of relevant articles on entrepreneurship ecosystem research and ethnic minority entrepreneurship, and thus, is not exhaustive. The selection was partly influenced by the authors’ opinion of whether a given study was relevant or not to a black entrepreneurship ecosystem. There is the possibility that some relevant studies were excluded. Thus, other actors are encouraged to revise or adapt this model to inform their distinct roles and goals.Practical implicationsThe proposed model can help actors involved in the operation or support of a black-owned business make optimal business decisions, enabling each actor to be instrumental in another’s understanding of how to facilitate the success of black American entrepreneurs and business owners and thus, deploy marketing campaigns to boost the visibility and role of each actor. These campaigns play a role in their entrepreneurial marketing efforts.Originality/valueResponding to Gines and Sampson’s (2020) call, to the best of the authors’ knowledge, this paper is the first to explicitly provide a comprehensive black entrepreneurship ecosystem model that identifies the actors, roles and activities that can help black Americans address social inequalities that limit their ability to become a successful employer business. The proposed model may aid in deepening the theoretical discussion on entrepreneurial ecosystems and be of inspiration for the future works of scholars and practitioners interested in the entrepreneurship and marketing interface.

ETHNIC ECONOMY IN MILANO: THE CASE OF THE TURKISH IMMIGRANTS IN THE KEBAB SECTOR

Şelale BALAMBAR ERGAN Middle East Technical University/City and Regional Planning Department sbalambar90@gmail.com The concept of ethnic minority entrepreneurs in the economy represents the employment patterns in the particular country. Immigrants often experience discrimination and exclusion in the labor market and the outcome of this process is the high rate of unemployment. On the contrary, the ethnic economy could be regarded as a promising alternative to unemployment among immigrants. With this decision, immigrant entrepreneurs create their own business and support other immigrants if the business is successful. Currently, immigrant entrepreneurs are comprising big part of urban economies. Besides contributing to the economics of the countries, immigrant entrepreneurs also open the way for the integration of immigrants in the countries of settlement. By creating ethnic economy to overcome discrimination and exclusion, immigrants are making themselves attractive and integrated into the host society. In Italy, migrants from Turkey often are self-employed in the kebab fast-food restaurant sector. The ethnic economy plays a significant role to overcome discrimination and create integration channels. Data were obtained from interviews with migrants from Turkey who arrived in Milano in the years between 1988-2010. In Italy, many migrants from Turkey are immigrating for the purpose of work, study, and so on. In general, the kebab sector entrepreneurs migrated to Milan as asylum-seekers. Like any other post-industrial/low-skilled market, the kebab sector is easily accessible and attractive for many aspiring immigrant entrepreneurs. Thanks to the low demand for human capital and no requirement for special skills, therefore, Turkish immigrants preferred this sector. Turkish immigrants as ethnic entrepreneurs are open to new opportunities. The result of the study highlights the question of how did the Turkish immigrants manage their own insertion and incorporation into the host society.

The impact of Covid-19 on struggling ethnic minority entrepreneurs' business strategy: the case of Bangladeshi curry houses in the United Kingdom

PurposeThis paper outlines ways in which struggling ethnic minority entrepreneurial service ventures and their owners might respond to unforeseen economic and social shocks. Interviews with owners of Bangladeshi Curry Houses in the United Kingdom — whom historically have lower performance rates compared to other ethnic minority businesses in the country — reveal that the entrepreneurs' response strategies undertaken to survive and remain in the business despite the challenges faced from operating in a turbulence environment.Design/methodology/approachThe authors conducted depth phone interviews with owners of Bangladeshi Curry Houses in London during January and February of 2021. The Gioia methodology was applied to the interview scripts to identify which crisis themes exist.FindingsDespite no advanced educational training, Bangladeshi owners have applied all of the different crisis management techniques present in larger companies: retrenchment, persevering, innovation, and exit. Although the results show that government schemes aimed at helping small businesses have contributed significantly to their survival, concerns regarding the post-health crisis situation remain challenging and threatening for their growth and survivability.Originality/valueThe results indicates that the ethnic minority owned small and medium-sized enterprises (SMEs) are less likely to plan for the future operations; furthermore, they tend not to have formulated a strategy for dealing with an external shock hence affecting and threatening their performance and competitiveness in the marketplace.

Bourdieusian and resource-based perspectives on ethnic minority microbusinesses: The construction of a culture-induced entrepreneurship model

ABSTRACT In contemporary developed Western societies, structural discrimination often bars ethnic minorities from entering mainstream entrepreneurship and labor markets. Consequently, minorities engage in microentrepreneurship for economic survival and to retain their social identities. Yet despite the economic value of ethnic minority microbusinesses, little is known about the underlying forces that develop fundamental resources which shape their performance. Based on Bourdieu’s forms of capital and the resource-based view of the firm, our study presents a novel culture-induced entrepreneurship model. This model explains how ethnic minority culture shapes the development of human capital resources and how these resources contribute to business performance in communities which are often characterized as “left behind.” Our study challenges the dominant underdog discourse of (cultural) capital deficit among ethnic minority entrepreneurs.

Intersecting where? The multi-scalar contextual embeddedness of intersectional entrepreneurs

ABSTRACT We explore the experiences of LGBT* ethnic minority entrepreneurs, their changing locations and their entrepreneurial activities. Using a unique mixed-method approach which collected empirical data from Germany and the Netherlands, the paper combines an ethnographic fieldwork of intersectional entrepreneurs, community activists and policy-makers with an original survey with LGBT* customers. Our findings contribute to understanding of intersectionality by revealing the role played by the contextualized embeddedness of intersectional entrepreneurs at the different geographic scales of supranational, national, regional and inter and intra-urban. While such embeddedness frames the challenges they face, it also provides opportunities for intersectional entrepreneurs. Using a multi-scalar perspective, this paper delivers a spatially contextual perspective of entrepreneurial diversity and provides a framework to analyse the complex issues and contexts with which intersectional entrepreneurs are both confronted and embedded within. This paper contributes to refining the spatial context of entrepreneurship which has gained attention in recent studies of entrepreneurship and regional development. The paper responds to a call for gender entrepreneurship scholars to contribute to understanding of intersectional entrepreneurship. Finally, this study goes beyond the binary view of female migrant entrepreneurship by adopting a more gender diverse lens which considers the experiences of LGBT* entrepreneurs from ethnic minorities.

Mixed embeddedness and entrepreneurship beyond new venture creation: Opportunity tensions in the case of reregulated public markets

The mixed embeddedness (ME) perspective offers a holistic approach to understanding entrepreneurship as embedded in a myriad of contexts. Alone, however, it is not capable of explaining the dynamic interrelations between entrepreneurship and opportunity structures beyond venture start-up. We offer a synthesis between ME and the dynamic states approach, using the concept of opportunity tension to explore the recursive interplay between entrepreneurial agency and opportunity structures. The integrated approach is applied to, and developed by drawing upon, the case of ethnic minority entrepreneurship in the changing Swedish welfare state following customer choice reform. We explore opportunity tensions that arise during start-up, growth and exit for two firms that provide care for the elderly in public quasi-markets. We develop concepts that account for different patterns of embeddedness and opportunity tensions as well as bottom-up effects of entrepreneurship in terms of reregulation and conclude that the interplay amounts to a paradox of ethnicity.

Survival strategies adopted by microbusinesses during COVID-19: an exploration of ethnic minority restaurants in northern Finland

PurposeThis paper explores the survival strategies and coping mechanisms of ethnic minority entrepreneurs operating in the hospitality sector in northern Finland during the ongoing COVID-19 pandemic.Design/methodology/approachThe paper utilizes qualitative research approach based on six exploratory case studies. The in-depth interviews in two phases were conducted with owners/mangers of ethnic minority entrepreneurial restaurants.FindingsThe findings reveal that all studied case firms undertook quick adjustments in response to the COVID-19 pandemic. For example, staff working hours were reduced through mutual consultation, and readjustments to the supply chain were made so that critical ingredients remain available despite the forced lockdown and supply chain bottlenecks. However, the readjustment of the supply chain was not visible in all case firms. Some of the owner-managers who were interviewed decided to keep doing business with the ethnic minority suppliers, despite some transportation problems due to lockdowns, especially in the early phases of COVID-19. Findings also suggest that the support grants announced by the state appeared not to be particularly useful for these restaurants due to restrictive eligibility criteria that many microbusinesses potentially fail to meet. Finally, the sample microbusinesses (restaurants) entrepreneurs recognize the importance of home delivery for their business survival, although they were critical of online food delivery service providers (apps) due to their high charges. Some of the case restaurants gave customers incentives for directly ordering from them, as an alternative strategy.Originality/valueThis paper is one of the first studies to specifically highlight the peculiarities of ethnic minority entrepreneurship and survival dynamics in northern Finland, where running the restaurant operations, including ensuring the supply chain management, is more complex than in the case of ethnic minority restaurants in more well-connected European countries and cities with an established history of immigrant businesses. This study is also novel in terms of specifying the strategies adopted by ethnic minority businesses in adjusting to the disruptions caused by the COVID-19 pandemic and surviving through it. At the same time, it has shown limitations and some problems associated with accessing state support announced for the hospitality industry in response to COVID-19. Finally, it offers a new angle by explicitly highlighting the power dynamics between restaurants and food ordering platforms (apps) and the potential alternatives in this specific context.

Ethnic minority entrepreneurship: Influencing factors of ethnic minority entrepreneurs’ entrepreneurial activities.

Purpose: Ethnic minority entrepreneurs make a significant social and economic contribution with their entrepreneurial activities. This research, therefore, aims to clarify the meaning of ethnic minority entrepreneurship and highlight the factors that influence ethnic minority entrepreneurs’ decision to engage in entrepreneurial activities. 
 Design/methodology/approach: In this secondary research, existing literature has been reviewed and integrated to highlight factors that influence ethnic minority entrepreneurs.
 Findings: This research could also create opportunities for further research in the ethnic minority entrepreneurship domain and help policymakers in understanding the needs of ethnic minority entrepreneurs.
 Research limitations/implications: These influencing factors are categorised into cultural aspects, disadvantage aspects, opportunity aspect and the resource aspect.
 Practical implications: Insight of this paper could help to clarify the meaning of ethnic minority entrepreneurship and provide a better understanding of the drivers and barriers of it.
 Originality/value: This paper is original
 Paper type: Research paper

Much ado about very little: The dubious connection between ethnic minority business policy and ethnic minority entrepreneurship

AbstractThis article presents a historical reprise of 40 years of policy interest in ethnic minority businesses in the UK. It contrasts the pronouncements of policymakers with the reality of ethnic minority entrepreneurship. Such an exercise is surprisingly rare given the activism of policymakers in this arena and growing scholarly interest in this field. Our historical overview is informed by a novel research method that plots references to ethnic minority entrepreneurship in the British Houses of Parliament. Though the UK has been the site of some interesting policy experiments on ethnic minority entrepreneurship, their impact has been slight when set against the context of broader political‐economic change.

Exploring innovation in challenging contexts: The experiences of ethnic minority restaurant owners during COVID-19

This article explores how Bangladeshi immigrants who run and own restaurants in the West Midlands of England (UK) participated in forms of innovation in response to the challenges created by COVID-19. Contributing to debates on innovation and diversification in the ethnic minority entrepreneurship literature, we explore through qualitative interview data how restaurant owners innovatively engaged with particular resources to secure their survival and longer-term futures in localised economies. This form of innovation is significant as it occurs among a population of entrepreneurs who have traditionally been portrayed as reluctant to innovate and embrace change. Our study therefore explores how a long-held culturally rooted reluctance to innovate intersects with a contemporary need to innovate for a demographic responding to the crisis. We theorise the form of innovation we identify as situated between a forced bricolage and a neoclassical approach to innovation.

The best of two worlds? Ethnic minority entrepreneurs and family in entrepreneurial activities

Ethnic minority entrepreneurs navigate between at least two different cultures. This can bring a number of advantages for their entrepreneurial endeavors, not least if those are based on ethnic-specific competences, such as ethnic cuisine. But they can also represent a challenge, for example when peers from the same group expect preferential treatment. Prior research has often pointed at the important role of family involvement for ethnic minority entrepreneurs, but has typically considered the family and/or business as the unit of analysis. In this study, we instead focus on the level of ethnic minority entrepreneurs and explore their perceptions about the role of family for creating and sustaining entrepreneurial activities. Based on an interview study with 34 ethnic minority entrepreneurs in Sweden, we identify three patterns and coping strategies for navigating between different cultures and expectations. These patterns include entrepreneurial ethnic loners, ethnic offspring entrepreneurs and ethnic recourse entrepreneurs.

Systematic Literature Review on Ethnic Minority Entrepreneurship: Citation and Thematic Analysis

This paper presents a systematic review of the literature on ethnic minority entrepreneurship. A total of 174 articles converging on ethnic minority entrepreneurship, published between 2010 and 2020, were investigated. This paper extends existing knowledge of the sub-areas in ethnic minority entrepreneurship research by focusing on two different angles. Firstly, Citation analysis was performed to review research papers to recognize and classify the key areas of ethnic minority entrepreneurship currently being focused on and examined by the research community. Secondly, Thematic analysis was executed to discover the specific themes that are being researched. The study found seven different themes: immigrant studies, ethnic entrepreneurial motivations, ethnic startup process, motives of ethnic business success, failure factors of ethnic businesses, ethnic unique challenges, and favourite strong ties of ethnic minorities were identified as main themes. The number of research gaps identified should encourage novel paths and scopes in the ethnic minority entrepreneurship research field to fill these gaps in the literature.

Absent or overlooked Promoting diversity among entrepreneurs with public support needs

Despite the widely recognised importance of diversity for business performance, knowledge concerning the support needs of under-represented groups is still limited. We adopt an intersectional approach to analyse the challenges and support needs of ethnic minority entrepreneurs, and those with disabilities, to participate in entrepreneurial activity in the UK. Our qualitative data is based on focus groups and semi-structured interviews. The findings suggest that engagement in entrepreneurship is influenced not just by minority status, but by the specific relations to other socio-demographic categories within which that status is embedded. Intersectional counter-frames form part of the strategies utilised by individuals to gain access to otherwise limited resources. We develop a conceptual model for promoting greater equality, diversity and inclusion, within an entrepreneurial ecosystem, and recommend a more holistic approach to realising inclusive economic growth. This includes adopting a hybrid/blended approach that combines targeted programs with the development of mainstream support programs.

Commercial Gentrification, Ethnicity, and Social Mixedness: The Case of Javastraat, Indische Buurt, Amsterdam

In this paper, we investigate the ethnic politics of commercial gentrification. We discuss how ethnicity is conceived of, managed by, and integrated into urban policy; and how the changing ethnic composition of the neighborhood is perceived and lived by entrepreneurs with different ethnic and class backgrounds. We employ the notion of “mixed embeddedness,” coined by Kloosterman et al., to understand the changes gentrification brings about for ethnic minority entrepreneurs and to explain their responses to these changes. Using the case study of a gentrifying street in Amsterdam, namely, Javastraat in Indische Buurt, we draw on an analysis of ethnic packaging at the policy level as well as in depth interviews with ethnically Dutch and ethnic minority entrepreneurs. Our findings shed light on how ethnic minorities survive and manage commercial gentrification on their doorsteps as well as the complexity of social mixedness in gentrifying neighborhoods.

Navigating belonging as a Muslim Moroccan female entrepreneur

ABSTRACT Entrepreneurship and families are inextricably intertwined. However, there is limited research on how female ethnic minority entrepreneurs achieve belonging and how they navigate the values and norms of their family, the ethnic community, and, for instance, clients. This article theorizes the processes of entrepreneurial belonging through an empirically informed ethnography of Muslim Moroccan female entrepreneurs (MMFEs) in the Netherlands. The analysis unveils the perceptions and contradictions regarding achieving belonging through navigating gender, ethnicity, and religion, but also relationships with family, community, and other stakeholders. It demonstrates how MMFEs must pierce through societal and professional stereotypes to establish themselves as entrepreneurs.

Birds of a Feather Flock Together: The Inclusive Effect of Similarity Patterns in Equity Crowdfunding

Crowdfunding is helping to drive financial inclusion by expanding the availability of funds to traditionally excluded and underserved groups of individuals, such as ethnic minority and female entrepreneurs. This study verifies how ethnic and gender similarity between investor and entrepreneur can affect the invested amount in an equity crowdfunding campaign. Using an integrated approach with linear regression and Shapley decomposition, we analyze 8600 investments made by 5996 unique personal shareholder investors in 81 equity crowdfunding campaigns. Results show that similarity patterns seem to significantly influence the amount invested in a campaign but their effects change according to investor’s gender and ethnic origin. In fact, even if female investors give a higher amount to men-led companies, their preference changes if the company is run by a female founder belonging to the same ethnic minority group. Results emphasize equity crowdfunding’s potential as a tool for the financial inclusion of ethnic minority groups of investors and entrepreneurs.

Family and identity: Intersectionality in the lived experiences of second-generation entrepreneurs of Chinese origin in the Netherlands

ABSTRACT This article explores how second-generation entrepreneurs of Chinese origin in the Netherlands construct their multiple identities in the context of their families of origin, at the intersection of ethnicity, generation, and entrepreneurship. Based on the life stories of five second-generation Chinese Dutch entrepreneurs, this article shows the complex trajectories through which entrepreneurial identity, ethnic identity, and second generation come together. It expands the theoretical and empirical insights on how these children grow up in Chinese immigrant families and become entrepreneurs in Dutch society and how, on the way, they set up less traditional businesses. Hence, the article underlines the importance of considering generation as an identity marker for ethnic minority entrepreneurs.

Approximating entrepreneurial superdiversity: reconceptualizing the superdiversity debate in ethnic minority entrepreneurship

ABSTRACTOne decade after its introduction, the superdiversity concept introduced by Steven Vertovec has widely found echoes in migration research, but also in business studies, particularly those focusing on ethnic minority entrepreneurship (EME). In spite of conceptually embracing superdiversity in EME research, the multi-dimensionality of superdiversity in its original understanding appears to require further consideration. Dimensions currently overlooked in research at the nexus of superdiversity and ethnic minority entrepreneurship are: (1) ethnic but also religious and linguistic diversity of entrepreneurship, (2) entrepreneurial diversity regarding business-types and (3) incorporation of the characteristics of the city within its analytical unit. Based on an extensive site survey of ethnic businesses in Glasgow combining ethnographic assessment and available statistical data on the city districts, this paper reconceptualizes the entrepreneurial superdiversity to do justice to the on-going debates on superdiversity within migration research. In doing so, it proposes the Entrepreneurial Superdiversity Index (ESI), which is a viable method for approximating entrepreneurial superdiversity in cities. The ESI allows comparative analyses of entrepreneurial superdiversity within a specific city and potentially also between different cities internationally, which could be highly useful for policy-makers and planners alike. It also delivers grounds for developing a general index for superdiversity in further migration research.

Contextualising ethnic minority entrepreneurship beyond the west

PurposeLiterature on immigrant and ethnic minority entrepreneurship almost exclusively focusses on the west, while neglecting other world regions. This neglect is problematic not only because international migration is on the rise outside the west, but also because it reveals an implicit ethnocentrism and creates particular presumptions about the nature of ethnic minority entrepreneurship that may not be as universally valid as is often presumed. The purpose of this paper is to examine ethnic minority entrepreneurship in non-western contexts to critically assess two of these presumptions, namely that it occurs in the economic margins and within clear ethnic community boundaries.Design/methodology/approachThe authors draw on academic literature (including the authors’ own) to develop two case descriptions of ethnic minority entrepreneurship outside the west: the Mennonites in Belize and the Chinese in Cambodia. For each case, the authors describe the historic entrepreneurial trajectory, i.e. the historical emergence of entrepreneurship in light of relevant community and society contexts.FindingsThe two cases reveal that, in contrast to characterisations of ethnic minority entrepreneurship in the west, the Mennonites in Belize and the Chinese in Cambodia have come to comprise the economic upper class, and their business activities are not confined to ethnic community boundaries.Originality/valueThe paper is the first to elaborate the importance of studying ethnic minority entrepreneurship outside the west, both as an aim in itself and as a catalyst to work towards a more neutral framework.

Contemporary ethnic minority entrepreneurship in the UK

Purpose Ethnic minority entrepreneurs (EMEs) are traditionally associated with lower growth industry sectors. The purpose of this paper is to draw on the theory of mixed embeddedness to determine if more recent EMEs have been able to break out of lower growth sectors and if break out varies across ethnic minority groups. It also compares entrepreneurial quality in terms of weekly hours worked, weekly earnings and job satisfaction. Design/methodology/approach Quantitative inferential statistical analysis is undertaken on data drawn from the large scale, social sciences data set for the UK, Understanding Society. Findings The study finds that break out is not associated with being a recent EME but does vary across ethnic minority groups. Break out is found to be associated with gender, education, English language proficiency and occupational status. Some variation in entrepreneurial quality is found for both recent EMEs and across ethnic minority groups. Practical implications Understanding the nature and quality of ethnic minority entrepreneurship is important since it informs public debate about migration, informs policy and shapes activities of future EMEs. Originality/value The study provides a theoretically grounded interpretation of the explanatory variables associated with EME break out and entrepreneurial quality. Second, it provides a large confirmatory study of break out and finally, it also finds an important empirical nuance to the concept of opportunity structure by identifying a variation over time in both external and socio-demographic factors.