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Article
Publication date: 13 May 2014

Matthew C. Sonfield

The purpose of this paper is to focus on the current status and the development of ethnic minority businesses in the USA and in the UK. Comparing the two countries’ past, current…

1241

Abstract

Purpose

The purpose of this paper is to focus on the current status and the development of ethnic minority businesses in the USA and in the UK. Comparing the two countries’ past, current, and likely future situations and recognizing that each situation offers some lessons to the other, implications for minority business owners and for those who assist or study such businesses in each country are presented.

Design/methodology/approach

This paper presents descriptive research and analysis, developed from a thorough study of governmental and non-governmental minority business assistance programs, and of corporate procurement programs, utilizing both primary and secondary sources; governmental, non-governmental organization and corporate publications; and the existing academic and practitioner literature.

Findings

Practitioners, consultants, and researchers in both the USA and the UK face considerable regulatory, demographic and other challenges and opportunities over the coming years with regard to the status and progress of minority-owned businesses and the appropriate nature of public and private policies and programs to foster and assist such businesses. Each country can benefit from the other's experience, as discussed and explained in this paper.

Practical implications

Specific recommendations are provided for those involved with targeted assistance programs in each country – for practitioners, governmental, and non-governmental program administrators, consultants to such businesses, and those who conduct research with this focus.

Originality/value

A search of the existing literature indicates that research with this focus has not been previously published.

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 13 July 2023

B M Razzak, Bochra Idris, Rahaman Hasan, George Saridakis and Jared M. Hansen

This paper outlines ways in which struggling ethnic minority entrepreneurial service ventures and their owners might respond to unforeseen economic and social shocks. Interviews…

Abstract

Purpose

This 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/approach

The 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.

Findings

Despite 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/value

The 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.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 29 no. 8
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 25 January 2008

Vickie Cox Edmondson, Won S. Suh and George Munchus

This paper sets out to promote individual enterprise responsibility and provide recommendations that will strengthen the relationship between large firms and small businesses

1252

Abstract

Purpose

This paper sets out to promote individual enterprise responsibility and provide recommendations that will strengthen the relationship between large firms and small businesses involved in minority supplier development programs in the USA.

Design/methodology/approach

The groundwork for the empirical study comprised a literature review of existing perspectives on the assisted growth and development of businesses owned by minorities.

Findings

Support is found for programs that help disadvantaged groups to succeed but opposition to preferential treatment is also evident. Several firms that have noteworthy minority supplier development programs are identified. Recommendations are provided to further develop the relationship between large suppliers and small businesses owned by minorities.

Research limitations/implications

Future research should use organizational case studies to provide a more detailed analysis of outcomes and the role of minority supplier development programs.

Practical limitations

It is not the intention in this work to present recommendations that will increase procurement contracts for ethnic business enterprises.

Originality/value

This paper offers several starting‐points, which are critical to building successful relationships between suppliers and small businesses owned by minorities.

Details

Management Research News, vol. 31 no. 2
Type: Research Article
ISSN: 0140-9174

Keywords

Article
Publication date: 2 December 2020

Ian Blount and Delmonize Smith

The purpose of this paper is to investigate the impact of employee homogeneity on the financial performance of minority business enterprises (MBEs). It is widely postulated that…

Abstract

Purpose

The purpose of this paper is to investigate the impact of employee homogeneity on the financial performance of minority business enterprises (MBEs). It is widely postulated that MBEs tend to hire minorities that resemble the ethnicity of the founder(s) and that this is beneficial by helping to decrease minority unemployment rates as well as providing new opportunities to minorities that they might not otherwise receive at White-owned firms.

Design/methodology/approach

The study used hierarchical linear regression on archival data of 271 MBEs to determine if employee homogeneity will be a factor in understanding their financial performance. The authors also conducted exploratory interviews with a convenience sample of MBEs to gain insight into the concept of employee homophily.

Findings

The research uncovered that as homogeneity increases, MBE financial performance decreases, and this effect is more pronounced the longer the MBE is in business.

Research limitations/implications

The data set is cross-sectional in nature and lack the perspective and clarity of time. The paper only contains a small set of exploratory interviews. The most significant implication from the study is that a lack of diversity decreases the long-term financial viability of MBEs which is to counter mainstream arguments that speak only to the positive aspects of MBEs hiring their own.

Originality/value

The research builds on the scant literature on the impact of diversity within MBEs. It also provides guidance to MBEs by suggesting they be strategic in diversifying their employee base in order to improve performance.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 40 no. 7
Type: Research Article
ISSN: 2040-7149

Keywords

Article
Publication date: 2 January 2014

Jeanie M. Forray and Janelle E. Goodnight

While institutional efforts have shown modest results, AACSB statistics suggest that current practices are insufficient to increase more substantively the representation of…

Abstract

Purpose

While institutional efforts have shown modest results, AACSB statistics suggest that current practices are insufficient to increase more substantively the representation of minorities among doctorally qualified business school faculty. The purpose of this paper is to explore antecedents to the faculty representation issue – that is, the motives, concerns, and resources of US minority individuals with respect to business doctoral program entry – as a basis for improving minority faculty representation outcomes.

Design/methodology/approach

A small sample of doctoral program directors were interviewed to ascertain their perspective on recruitment, design and delivery of PhD programs in business and from which a survey instrument was developed. A sample of 292 US minority respondents surveyed indicated their top reasons for and concerns about pursuing a doctorate, program selection and rejection criteria, sources of information and financing, and, for those in the decision-making stage, reasons for waiting to apply to a program. The paper compares responses of those who graduated from or are currently enrolled in a doctoral program in business with those who decided not to enroll. The paper also explores factors most salient to individuals currently contemplating enrolling but who have not yet decided to do so.

Findings

Results suggest that mentorship of promising undergraduate and master's students by business faculty and current doctoral students is critical to US minority enrollments in doctoral programs; however, a school's physical location, required time and energy, and financial considerations also play a role in the decision-making process. The role of international students in diversity efforts by doctoral programs is also salient.

Originality/value

Previous studies in multiple disciplines note the under-representation of US minority faculty in academe. In business education, suggestions for overcoming this gap have focussed on recruitment, mentoring, and/or networks and support groups but little is known about antecedents to entry (motives, concerns, and resources of US minority individuals) with respect to business doctoral programs.

Details

Equality, Diversity and Inclusion: An International Journal, vol. 33 no. 1
Type: Research Article
ISSN: 2040-7149

Keywords

Content available
Article
Publication date: 1 March 2015

Yoon G. Lee, Margaret A. Fitzgerald, Kenneth R. Bartkus and Myung-Soo Lee

With data from the 2003 and 2005 National Minority Business Owners Survey, we examined the extent to which minority business owners differ from nonminority business owners in…

2510

Abstract

With data from the 2003 and 2005 National Minority Business Owners Survey, we examined the extent to which minority business owners differ from nonminority business owners in their reported use of adjustment strategies, and the relationship between the use of adjustment strategies and perceived business success. The sample consisted of 193 African American, 200 Mexican American, 200 Korean American, and 210 white business owners. Mexican American and Korean American business owners reported higher levels of adjustment strategy use than African American and white business owners. The ordinary least squares show that reallocating family resources to meet business needs and reallocating business resources to meet family needs were negatively associated with perceived business success, whereas hiring paid help was positively associated with perceived business success.

Details

New England Journal of Entrepreneurship, vol. 18 no. 1
Type: Research Article
ISSN: 2574-8904

Keywords

Article
Publication date: 20 March 2007

Thoralf Dassler, Claire Seaman, Richard Bent, Lisa Lamb and Nicola Mateer

To address the issue of the low take‐up of available ethnic business support the article proposes the composition of a database for Scotland, thereby providing baseline data on…

Abstract

Purpose

To address the issue of the low take‐up of available ethnic business support the article proposes the composition of a database for Scotland, thereby providing baseline data on minority businesses and hence providing a sampling frame for future research. The database will hold the following information: name and gender of the business owner, sector, location, number of employees as an indicator of company size, generation, the year in which the business was established, as well as the legal form of ownership of businesses.

Design/methodology/approach

The database draws from the concept of mixed embeddedness as well as the political agenda of the Scottish Executive for the sector. Data sources used are commercial databases, the Yellow Pages of Scotland, local business registers across Scotland, a telephone survey and personal contact/networking with businesses.

Findings

In order to facilitate the composition of a Scottish database of minority businesses, this article has looked at existing theories of minority business support and issues currently considered in the literature. Based on the literature underpinning research on ethnic minority firms, a justification for the proposed database has been developed, which provides a sampling frame in the Scottish context and allows for new approaches to research.

Research limitations/implications

Though 100 per cent coverage of minority businesses in Scotland is a desired target, complete coverage may not be achievable. Some business might simply not be interested in participating in the research and cannot, therefore, be included in the database despite the multi‐facet methodology applied.

Originality/value

By proposing a methodology for composing the database, the article tackles a long‐standing issue in the area of ethnic business research. It is hoped that the database will improve understanding among policy makers and support organisations, in terms of the particular needs of individual businesses. Consequently, the better understanding should account for a more tailored and more attractive support, which, in turn, improves the take‐up of existing mechanisms.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 13 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

Article
Publication date: 16 November 2015

Tolulope Bewaji, Qin Yang and Yunxuan Han

The purpose of this paper is to examine what factors affect entrepreneurs with minority background to access public financial institutions’ funds in initiating and developing…

2074

Abstract

Purpose

The purpose of this paper is to examine what factors affect entrepreneurs with minority background to access public financial institutions’ funds in initiating and developing their new ventures. Following the signal theory, social capital theory and the liability of newness perspective, the effect of demographic characteristics of entrepreneurs were investigated and the differences between ethnic minority and non-minority entrepreneurs’ access to financial institutions’ funds were compared.

Design/methodology/approach

This paper draws on the data of 2,119 high technology and non-high technology firms from the Kauffman foundation survey. The empirical analysis was focussed on the characteristics of entrepreneurs of these new ventures and the nature of the financial arrangements of these businesses to test the theoretical framework.

Findings

This study provides empirical evidence that ethnic minority entrepreneurs are less likely to access loans from financial institutions than non-minority entrepreneurs. Moreover, the education level of ethnic minority entrepreneurs was identified as a key factor to help them to access financial institutions’ funds.

Research limitations/implications

The main limitation is that the data did not allow us to explore the actual reasons for observed correlations between entrepreneurs’ ethnic background, demographic characteristics and their use of financial institutions’ funds.

Practical implications

Since the constraints in the access to financial resources greatly impact the success of new ventures, this study indicates through what factors minority entrepreneurs can increase their credence to get more financial support. In addition, it is also helpful for the loan managers of financial institutions to make rational decisions when they assess the application of minority entrepreneurs.

Originality/value

This study enriches the understanding of minority entrepreneurs in the entrepreneurship literature. First, it aggregates major minorities in the USA and strives to identify systematically different financing behaviors of these minority entrepreneurs; second, it provides empirical investigation on the correlation of ethnic minority background and access to funds from financial institutions and the moderating effect of a set of demographic factors.

Details

Journal of Small Business and Enterprise Development, vol. 22 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 14 August 2007

Javed Hussain and Harry Matlay

The purpose of this research is to show that while mainstream finance for small businesses has been researched, hard to reach segments of the UK owner/manager population have…

2937

Abstract

Purpose

The purpose of this research is to show that while mainstream finance for small businesses has been researched, hard to reach segments of the UK owner/manager population have eluded empirically rigorous investigation. The authors investigate the financing preferences of owner/managers in small ethnic minority businesses in the UK and examine their access to both formal and informal finance as well as the use of personal funding networks. The emergent results are compared with the findings from a matched “control sample” of white small business owner/managers.

Design/methodology/approach

Identical, in‐depth, face‐to‐face interviews were used with a sample of ethnic minority small business owner/managers and a matched control sample of white respondents in the West Midlands region of the UK.

Findings

Family and close associate networks were very important for the support of both ethnic minority and white owner/managers. All the respondents required loans from banks and other financial institutions, both at the start‐up stage and in subsequent years. For the ethnic minority owner/managers, the initial importance of financial institutions declined over the years. In contrast, in the control sample, institutional borrowing needs increased considerably. Ethnic minority owner/managers showed a preference for less intrusive and more “user friendly” financing options that allow them to remain in full control of their businesses.

Practical implications

Caution is advised in the use and generalisation of results emerging from qualitative research that involves small samples of respondents chosen from a restricted area of the UK.

Originality/value

The research shows the importance of “user‐friendly” financing options for owner/managers.

Details

Journal of Small Business and Enterprise Development, vol. 14 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 13 June 2016

Muhammad Naveed Anwar and Elizabeth Daniel

The purpose of this paper is to explore the marketing of online businesses operated by ethnic minority entrepreneurs. The authors apply an entrepreneurial marketing lens to…

4163

Abstract

Purpose

The purpose of this paper is to explore the marketing of online businesses operated by ethnic minority entrepreneurs. The authors apply an entrepreneurial marketing lens to explore how such entrepreneurs draw on the resources to market their businesses. They also consider whether online businesses offer such entrepreneurs the opportunity to break out of the highly competitive sectors with which they are traditionally associated.

Design/methodology/approach

Key informant interviews are undertaken with 22 entrepreneurs operating online businesses in the UK and augmented by complementary sources of data such as their websites and press coverage.

Findings

Use of an entrepreneurial marketing perspective demonstrates that marketing in such businesses is not haphazard or chaotic. Rather it reflects the emergent and flexible use of resources. The affordances of online businesses appear to offer opportunities for break out, but the reliance on incremental experimentation and copying others results in highly homogeneous approaches to marketing. The authors also provide empirical evidence of the link between visa status and entrepreneurial choices.

Originality/value

Despite the popularity of online businesses, previous studies have not explored them as an opportunity for ethnic minority entrepreneurs. This study moves the consideration of break out from market-entry to the ongoing marketing activities that sustain a business. It also demonstrates how the domains of ethnic minority entrepreneurship and entrepreneurial marketing can be brought together via a focus on resources. Finally, it enriches entrepreneurial marketing by evidencing connections with notions of effectuation and entrepreneur-venture fit.

Details

Qualitative Market Research: An International Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1352-2752

Keywords

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