Ethnic minority entrepreneurship: Influencing factors of ethnic minority entrepreneurs’ entrepreneurial activities.
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Mar 31, 2022
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Abstract
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
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References
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Basu, A. & Altinay, E. (2002). The Interaction Between Culture and Entrepreneurship in London’s Immigrant Business, International Small Business Journal, 20(4). 371-393.
Bates, T., & Bradford, W. (2007). Traits and Performance of the Minority Venture-Capital Industry, The Annals of the American Academy of Political and Social Science, 613(3), 95-107.
Bhopal, R. (2004). Glossary of Terms Relating to Ethnicity and Race: For Reflection and Debate, Journal of Epidemiology and Community Health, 58(6), 441-445.
Blanchard, L., Zhao, B. & Yinger, J. (2008). Do Lenders Discriminate Against Minority and Women Entrepreneurs, Journal of Urban Economics, 63(2), 467-497.
Carter, S., Mwaura, S., Ram, Monder, Trehan, K. & Jones, T. (2015). Barriers to Ethnic Minority and Women’s Enterprise, Existing evidence, Policy Tensions and Unsettled Questions, International Small Business Journal, 33(1), 49-69.
Chand, M. & Ghorbani, M. (2011). National Culture, Network and Ethnic Entrepreneurship: A Comparison of The Indian and Chinese Immigrants in the US, International Business Review, 20(6), 593-606.
Chaudhry, S. & Crick, D. (2004). Understanding Practices at the Ethnic Marketing, Entrepreneurship Interface, A Case Study of Kirit Pathak, Qualitative Market Research: An International Journal, 7(3), 183-193.
Clark, K. (2015). Ethnic Minority Self Employment, IZA World of Labour, University of Manchester, UK, and IZA, Germany, Available at: https://wol.iza.org/uploads/articles/120/pdfs (Accessed 16 July 2021).
Clark, K. & Drinkwater, S. (2000). Pushed Out or Pulled In? Self-Employment Among Ethnic Minorities, In England and Wales, Labour Economics, 7(5), 603-628.
Clark, K. & Drinkwater, S. (2010). Recent Trends in Minority Ethnic Entrepreneurship in Britain, International Small Business Journal, 28(2), 136-146.
Crick, D. & Chaudhry, S. (2013). An Exploratory Study of The UK Based, Family-owned, Asian Firms’ Motives for Internationalising, Journal of Small Business and Enterprise Development, 20(3), 526-547.
Deakins, D. (1996). Entrepreneurs and Small Firms, London: McGraw-Hill.
Deakins, D., Mohammed, I., Smallbone, D., Whittam, G. & Wyper, J. (2007). Ethnic Minority Business in Scotland and the Role of Social Capital, International Small Business Journal, 25(3), 307-326.
Fraser, S. (2007). Finance for SMEs: Comparison of Ethnic Minority and White Owned Business, Durham ESRC-SBS Seminar on Entrepreneurial Finance, Warwick Business School, Available at: https://warwick.ac.uk/fac/soc/wbs/research/ei/latest/small_firms_in_the_credit_crisis_v3test.pdf, (Accessed 23 July 2021).
Glinka, B. (2018) Immigrant Entrepreneurship as a Field of Research, Problemy Zarzadzania, 16(1), 17-31.
Heilman, M. F. & Chen, J. I. (2003). Entrepreneurship as a Solution: The Allure of Self-employment for Women and Minorities, Human Resource Management Review, 13(2), 347-364.
Hussain, J. & Matlay, H. (2007). Financing Preferences of Ethnic Minority Owner/Managers in the UK, Journal of Small Business and Enterprise Development, 14(3), 487-500.
Ibrahim, G. & Galt, V. (2011). Explaining Ethnic Entrepreneurship: An Evolutionary Economics Approach, International Business Review, 20(6), 607-613.
Jamal, A. (2005). Playing to Win: An Explorative Study of Marketing Strategies of Small Ethnic Retail Entrepreneurs in the UK, Journal of Retailing and Consumer Service, 12(1), 1-13.
Jones, T., Ram, M., Edwards, P., Kiselinchev, A. & Muchenje, L. (2014). Mixed Embeddedness and New Migrant Enterprise in the UK, Entrepreneurship and Regional Development, 26(5-6), 500-520.
Ley, D. (2006). Explaining Variations in Business Performance Among Immigrant Entrepreneurs in Canada, Journal of Ethnic and Migration Studies, 32(5), 743-764.
Ma, Z., Zhao, S., Wang, T. & Lee, Y. (2013). An Overview of Contemporary Ethnic Entrepreneurship Studies: Themes and Relationships, International of Entrepreneurial Behaviour and Research, 19(1), 32-52.
Masurel, E., Nijkamp, P. & Vindigni, G. (2004). Breeding Places for Ethnic Entrepreneurs: A Comparative Marketing Approach, Entrepreneurship and Regional Development, 16(1), 77-86.
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Parker, S. C. (2009). The Economics of Entrepreneurship, New York: Cambridge University Press.
Piperopoulos, P. (2010). Ethnic Minority Business and Immigrant Entrepreneurship in Greece, Journal of Small Business and Enterprise Development, 17(1), 139-158.
Ram, M. (1997). Ethnic Minority Enterprise: An Overview and Research Agenda, International Journal of Entrepreneurial Behaviour and Research, 3(4), 149-56.
Ram, M. & Carter, S. (2003). Paving Professional Futures: Ethnic Minority Accountants in the United Kingdom, International Small Business Journal, 21(1), 55-71.
Ram, M. & Smallbone, D. (2003). Policies to Support Ethnic Minority Enterprise: The English Experience, Entrepreneurship and Regional Development, 15(2), 151-166.
Ramachandran, V. & Shah, M. K. (2007). Why are There So Few Black-Owned Firms in Africa? Preliminary Results from Enterprise Survey Data, Working Paper No. 104, Centre for Global Development, January 2007, Available at: https://www.cgdev.org/publication (Accessed 28 July 2021).
Sequeira, J. M. & Rasheed, A. A. (2006). Start-up and Growth of Immigrant Small Business: The Impact of Social and Human Capital, Journal of Developmental Entrepreneurship, 11(4), 357-375.
Singh, G. & DeNoble, A. (2004). Psychological Accumulation of Ethnic Minorities and Entrepreneurship, International Research in the Business Disciplines, 4, 279-89.
Sriram, V., Mersha, T. & Herron, L. (2007). Drivers of Entrepreneurship: An Integrative Model, International Journal of Entrepreneurial Behaviour and Research, 13(4), 235-251.
Valdez, Z. (2008). The Effect of Social Capital on White, Korean, Mexican and Black Business Owners’ Earnings in the US, Journal of Ethnic and Migration Studies, 34(6), 955–971.
Volery, T. (2007). Ethnic Entrepreneurship: A Theoretical Framework. In Dana, L. P. (ed.) Handbook of Research on Ethnic Entrepreneurship: A Co-evolutionary View on Resource Management, Cheltenham, UK: Edward Elgar, 30-41.
Vries, P. H. (2014). Does It Really Matter? Understanding the Impact of Engagement and Beliefs on Immigrant Ethnic Minority Entrepreneurship, Small Enterprise Research, 21(1), 72-81.
Waldinger, R., Aldrich, H. E., Ward, R. (1990). Immigrant Entrepreneurs: Immigrant and Ethnic Business in Western Industrial Societies, Beverly Hill, CA: Sage Publications.
Wang, C. L. & Altinay, L. (2010). Social Embeddedness, Entrepreneurial Orientation and Firm Growth in Ethnic Minority Small Business in the UK, International Small Business Journal, 30(1), 3-23.
Wang, X., Maani, S. (2014). Ethnic Capital and Self-Employment: A Spatially Autoregressive Network Approach, IZA Journal of Migration, 3(18), 1-24.
Wauters, B. & Lambrecht, J. (2008). Refugee Entrepreneurship: The Case of Belgium, In Iandoli, I., Lanstrom, H. & Raffa, M. (eds.) Entrepreneurship, Competitiveness and Local Development: Frontiers in European Entrepreneurship Research, Cheltenham, UK: Edward Elgar, 200-222.
Weber, M. (1978) Economy and Society, Edited by Roth, G. & Wittich, C. Berkeley: University of California Press.
Wimmer, A. (2008) The Making and Unmaking of Ethnic Boundaries: A Multilevel Process Theory, American Journal of Sociology, 113(4), 970-1022.
Basu, A. (2004). Entrepreneurial Aspiration Among Family Business Owners: An Analysis of Ethnic Business Owners in the UK, International Journal of Entrepreneurial Behaviour and Research, 10(2). 241-258.
Basu, A. (2006). Ethnic Minority Entrepreneurship, In: Casson, M., Yeung, B. & Wedeson, N. (eds.) The Oxford Handbook of Entrepreneurship, Oxford: Oxford University Press, 580-600.
Basu, A. & Altinay, E. (2002). The Interaction Between Culture and Entrepreneurship in London’s Immigrant Business, International Small Business Journal, 20(4). 371-393.
Bates, T., & Bradford, W. (2007). Traits and Performance of the Minority Venture-Capital Industry, The Annals of the American Academy of Political and Social Science, 613(3), 95-107.
Bhopal, R. (2004). Glossary of Terms Relating to Ethnicity and Race: For Reflection and Debate, Journal of Epidemiology and Community Health, 58(6), 441-445.
Blanchard, L., Zhao, B. & Yinger, J. (2008). Do Lenders Discriminate Against Minority and Women Entrepreneurs, Journal of Urban Economics, 63(2), 467-497.
Carter, S., Mwaura, S., Ram, Monder, Trehan, K. & Jones, T. (2015). Barriers to Ethnic Minority and Women’s Enterprise, Existing evidence, Policy Tensions and Unsettled Questions, International Small Business Journal, 33(1), 49-69.
Chand, M. & Ghorbani, M. (2011). National Culture, Network and Ethnic Entrepreneurship: A Comparison of The Indian and Chinese Immigrants in the US, International Business Review, 20(6), 593-606.
Chaudhry, S. & Crick, D. (2004). Understanding Practices at the Ethnic Marketing, Entrepreneurship Interface, A Case Study of Kirit Pathak, Qualitative Market Research: An International Journal, 7(3), 183-193.
Clark, K. (2015). Ethnic Minority Self Employment, IZA World of Labour, University of Manchester, UK, and IZA, Germany, Available at: https://wol.iza.org/uploads/articles/120/pdfs (Accessed 16 July 2021).
Clark, K. & Drinkwater, S. (2000). Pushed Out or Pulled In? Self-Employment Among Ethnic Minorities, In England and Wales, Labour Economics, 7(5), 603-628.
Clark, K. & Drinkwater, S. (2010). Recent Trends in Minority Ethnic Entrepreneurship in Britain, International Small Business Journal, 28(2), 136-146.
Crick, D. & Chaudhry, S. (2013). An Exploratory Study of The UK Based, Family-owned, Asian Firms’ Motives for Internationalising, Journal of Small Business and Enterprise Development, 20(3), 526-547.
Deakins, D. (1996). Entrepreneurs and Small Firms, London: McGraw-Hill.
Deakins, D., Mohammed, I., Smallbone, D., Whittam, G. & Wyper, J. (2007). Ethnic Minority Business in Scotland and the Role of Social Capital, International Small Business Journal, 25(3), 307-326.
Fraser, S. (2007). Finance for SMEs: Comparison of Ethnic Minority and White Owned Business, Durham ESRC-SBS Seminar on Entrepreneurial Finance, Warwick Business School, Available at: https://warwick.ac.uk/fac/soc/wbs/research/ei/latest/small_firms_in_the_credit_crisis_v3test.pdf, (Accessed 23 July 2021).
Glinka, B. (2018) Immigrant Entrepreneurship as a Field of Research, Problemy Zarzadzania, 16(1), 17-31.
Heilman, M. F. & Chen, J. I. (2003). Entrepreneurship as a Solution: The Allure of Self-employment for Women and Minorities, Human Resource Management Review, 13(2), 347-364.
Hussain, J. & Matlay, H. (2007). Financing Preferences of Ethnic Minority Owner/Managers in the UK, Journal of Small Business and Enterprise Development, 14(3), 487-500.
Ibrahim, G. & Galt, V. (2011). Explaining Ethnic Entrepreneurship: An Evolutionary Economics Approach, International Business Review, 20(6), 607-613.
Jamal, A. (2005). Playing to Win: An Explorative Study of Marketing Strategies of Small Ethnic Retail Entrepreneurs in the UK, Journal of Retailing and Consumer Service, 12(1), 1-13.
Jones, T., Ram, M., Edwards, P., Kiselinchev, A. & Muchenje, L. (2014). Mixed Embeddedness and New Migrant Enterprise in the UK, Entrepreneurship and Regional Development, 26(5-6), 500-520.
Ley, D. (2006). Explaining Variations in Business Performance Among Immigrant Entrepreneurs in Canada, Journal of Ethnic and Migration Studies, 32(5), 743-764.
Ma, Z., Zhao, S., Wang, T. & Lee, Y. (2013). An Overview of Contemporary Ethnic Entrepreneurship Studies: Themes and Relationships, International of Entrepreneurial Behaviour and Research, 19(1), 32-52.
Masurel, E., Nijkamp, P. & Vindigni, G. (2004). Breeding Places for Ethnic Entrepreneurs: A Comparative Marketing Approach, Entrepreneurship and Regional Development, 16(1), 77-86.
Metcalf, H. (2009). Pay Gaps Across the Equality Strands: A Review, Equality and Human Rights Commission Research Report, No. 14, Manchester: Equality and Human Research Commission, Available at: equalityhumanrights.com, (Accessed 27 November 2021).
Parker, S. C. (2009). The Economics of Entrepreneurship, New York: Cambridge University Press.
Piperopoulos, P. (2010). Ethnic Minority Business and Immigrant Entrepreneurship in Greece, Journal of Small Business and Enterprise Development, 17(1), 139-158.
Ram, M. (1997). Ethnic Minority Enterprise: An Overview and Research Agenda, International Journal of Entrepreneurial Behaviour and Research, 3(4), 149-56.
Ram, M. & Carter, S. (2003). Paving Professional Futures: Ethnic Minority Accountants in the United Kingdom, International Small Business Journal, 21(1), 55-71.
Ram, M. & Smallbone, D. (2003). Policies to Support Ethnic Minority Enterprise: The English Experience, Entrepreneurship and Regional Development, 15(2), 151-166.
Ramachandran, V. & Shah, M. K. (2007). Why are There So Few Black-Owned Firms in Africa? Preliminary Results from Enterprise Survey Data, Working Paper No. 104, Centre for Global Development, January 2007, Available at: https://www.cgdev.org/publication (Accessed 28 July 2021).
Sequeira, J. M. & Rasheed, A. A. (2006). Start-up and Growth of Immigrant Small Business: The Impact of Social and Human Capital, Journal of Developmental Entrepreneurship, 11(4), 357-375.
Singh, G. & DeNoble, A. (2004). Psychological Accumulation of Ethnic Minorities and Entrepreneurship, International Research in the Business Disciplines, 4, 279-89.
Sriram, V., Mersha, T. & Herron, L. (2007). Drivers of Entrepreneurship: An Integrative Model, International Journal of Entrepreneurial Behaviour and Research, 13(4), 235-251.
Valdez, Z. (2008). The Effect of Social Capital on White, Korean, Mexican and Black Business Owners’ Earnings in the US, Journal of Ethnic and Migration Studies, 34(6), 955–971.
Volery, T. (2007). Ethnic Entrepreneurship: A Theoretical Framework. In Dana, L. P. (ed.) Handbook of Research on Ethnic Entrepreneurship: A Co-evolutionary View on Resource Management, Cheltenham, UK: Edward Elgar, 30-41.
Vries, P. H. (2014). Does It Really Matter? Understanding the Impact of Engagement and Beliefs on Immigrant Ethnic Minority Entrepreneurship, Small Enterprise Research, 21(1), 72-81.
Waldinger, R., Aldrich, H. E., Ward, R. (1990). Immigrant Entrepreneurs: Immigrant and Ethnic Business in Western Industrial Societies, Beverly Hill, CA: Sage Publications.
Wang, C. L. & Altinay, L. (2010). Social Embeddedness, Entrepreneurial Orientation and Firm Growth in Ethnic Minority Small Business in the UK, International Small Business Journal, 30(1), 3-23.
Wang, X., Maani, S. (2014). Ethnic Capital and Self-Employment: A Spatially Autoregressive Network Approach, IZA Journal of Migration, 3(18), 1-24.
Wauters, B. & Lambrecht, J. (2008). Refugee Entrepreneurship: The Case of Belgium, In Iandoli, I., Lanstrom, H. & Raffa, M. (eds.) Entrepreneurship, Competitiveness and Local Development: Frontiers in European Entrepreneurship Research, Cheltenham, UK: Edward Elgar, 200-222.
Weber, M. (1978) Economy and Society, Edited by Roth, G. & Wittich, C. Berkeley: University of California Press.
Wimmer, A. (2008) The Making and Unmaking of Ethnic Boundaries: A Multilevel Process Theory, American Journal of Sociology, 113(4), 970-1022.