Do Business Ecosystems See Color?

This article describes an American community survey and a survey of business owners of which the data are merged to assess the experiences of minority- versus white-owned small businesses between 2007 and 2012. This is highlighted due to it being a period encompassing the worst economic downturn since The Great Depression. White firms declined while minority firms grew rapidly. Despite recent efforts to create inclusive entrepreneurial and business ecosystems, however, minority business owners made little progress toward achieving equity or parity with white business owners. Policy prescriptions and implications for future research are discussed.

Adjustment strategies and business success in minority-owned family firms

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.

MINORITY BUSINESS NETWORKS AS SOURCES OF SOCIAL CAPITAL FOR MINORITY FIRMS

Much of our understanding concerning minority-owned firms is based on nascent entrepreneurial businesses. Therefore, it is difficult to answer the question of how a minority-owned firm's age and size may influence the social capital derived from a minority business network. We utilize a resource-dependence perspective to hypothesize that the social capital derived from participation in a minority business network will be negatively related to the minority-owned firm's age and size. We find that firm size (as measured by revenue and number of employees) is negatively related with social capital derived from the minority business network. Our findings may help minority business owners understand the relative value of membership in minority business networks before committing limited resources.

PERFORMANCE OF NEWLY-FORMED MICRO FIRMS: THE ROLE OF CAPITAL FINANCING IN MINORITY-OWNED ENTERPRISES

We sought to ascertain whether newly-formed micro firms owned by minority entrepreneurs would be as likely to be profitable or not when compared to non-minority business owners. Additionally, we placed special emphasis on the impact of equity and debt to determine if capital financing influences firm profitability the same or differently for minority as compared to non-minority owned micro firms. Using longitudinal data from the Kauffman Firm Survey, micro firms owned by Hispanic and Black entrepreneurs were less likely to be profitable than non-minority owned micro firms, whereas profitability differences were not found between the latter and Asian-owned micro firms. Moreover, Hispanic and Black-owned micro firms that made use of personal debt were more likely to be profitable than those using only equity to finance operations. Asian-owned micro firms that utilized business debt were more likely to earn a profit than those solely using equity. Alternatively, non-minority owners benefited in terms of profitability from the use of both personal and business debt. Implications of these findings for minority entrepreneurship are discussed.

African-American Business Ownership: Strength In Numbers, But Where?

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-layout-grid-align: none;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">Federal and state governments have seen fit to create <span style="color: black;">enterprise and empowerment zones which benefit community redevelopment.<span style="mso-spacerun: yes;">&nbsp; </span></span>Are these areas good for minority businesses?<span style="mso-spacerun: yes;">&nbsp; </span>Data from Broward County, Florida show that African-American owned businesses tend to be in ethnic communities.<span style="mso-spacerun: yes;">&nbsp; </span>They also tend to be in enterprise zones moreso than the other groups, and less likely than women-owned businesses to be in industry clusters.<span style="mso-spacerun: yes;">&nbsp; </span>The findings, if replicated in other diverse urban communities, have implications for potential minority business owners.<span style="mso-spacerun: yes;">&nbsp; </span>Future research should address whether the differences in location patterns are related to business success.</span></span></p>

FEMALE ENTREPRENEURS' AUTHORITY: IS THE CREATIVE ASPECT OF AUTHORITY A MASCULINE FICTION IN MANAGERIAL AND ENTREPRENEURIAL PARADIGMS?

Authority is the confirmation of the control an individual has over norms and codes (Sennet, 1981). It stimulates the development of social capital. Gender shapes authority. Bourdieu (1994) stresses that in traditional societies men can interpret and produce norms whereas women reproduce them and consequently may experience difficulties in constructing their authority. Butler (1990) confirms that this dichotomy is still effective in post-modern contexts. In the literature on women entrepreneurs, scholars stress their lack of social capital as an impediment to growing the business and suggest that they should follow the male model (Aldrich et al., 1997; Ban et al., 1996). However, if one examines carefully the process of production of social capital, one would see that it is the result of a strict gender labor-division. In spite of their agentivity, female entrepreneurs fail to overcome this. Many of them may thus be tempted to adapt male patterns of authority. The present study examines how women entrepreneurs and minority business owners assimilate authority that is encapsulated in the traditional male entrepreneurial discourse. Then it analyses the perception of women entrepreneurs on authority and its impact on their style of internal management and their strategies of networking. The results reveal that either female entrepreneurs adopt authority as a repressive tool of management that helps them to develop their social capital in restricted circles of influence or they scorn authority as the display of norms that may endanger the reputation of their firms and their social influence without proposing a clear alternative. Apparently, women entrepreneurs deny the creative aspects of authority that Sennet and his Foucaldian followers have detected in managers' behaviors in the context of organizational sociology.

AMERICA'S LARGEST BLACK-OWNED COMPANIES: A 30-YEAR LONGITUDINAL ANALYSIS

This article investigates the largest American black-owned companies over a 30-year period, from 1974 to 2004. Trends with regard to the growth and decline of industry categories and of individual companies, and with regard to these companies' survival rates, are analyzed. Comparable survival rates of small businesses in general, of minority businesses, and of large corporations are investigated. The important factors of corporate minority procurement programs and government minority set-aside programs are evaluated. The phenomenon of large American corporations acquiring some of the most successful black-owned businesses is also studied. These various factors relating to black business success and failure lead to a range of implications and recommendations for current and aspiring minority business owners, as well as to consultants to and researchers of minority business.