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Fighting an Uphill Battle: Expansion Barriers, Intra–Industry Social Stratification, and Minority Firm Growth

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  • Lois M. Shelton

Abstract

Here, a model of minority firm expansion based on the resource–based view, the expansion barriers framework, and social stratification processes illustrates the economic and social barriers faced by minority companies. Firm growth is impacted by industry economic structure through expansion barriers, and by industry social structure through opportunity structures. It is argued that industry social structure, which includes discriminatory industry practices, can be used to stratify firms into higher and lower performing groups by ethnicity and will have a greater impact on minority firm growth in industries with more concentrated social structures and higher wealth creation potential.

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  • Lois M. Shelton, 2010. "Fighting an Uphill Battle: Expansion Barriers, Intra–Industry Social Stratification, and Minority Firm Growth," Entrepreneurship Theory and Practice, , vol. 34(2), pages 379-398, March.
    • Handle: RePEc:sae:entthe:v:34:y:2010:i:2:p:379-398
    DOI: 10.1111/j.1540-6520.2010.00379.x
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    1. M. Knockaert & M. Der Foo & T. Erikson, 2011. "Determinants of entrepreneurs’ growth intentions. A cognitive style perspective," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/720, Ghent University, Faculty of Economics and Business Administration.
    2. Timothy Bates & William D. Bradford & William E. Jackson, 2018. "Are minority-owned businesses underserved by financial markets? Evidence from the private-equity industry," Small Business Economics, Springer, vol. 50(3), pages 445-461, March.
    3. Prieger, James E., 2023. "Local banking markets and barriers to entrepreneurship in minority and other areas," Journal of Economics and Business, Elsevier, vol. 124(C).
    4. Justin R. Hall & Selen Savas-Hall & Eric H. Shaw, 2023. "A deductive approach to a systematic review of entrepreneurship literature," Management Review Quarterly, Springer, vol. 73(3), pages 987-1016, September.
    5. Donald Kuratko & Michael Morris & Minet Schindehutte, 2015. "Understanding the dynamics of entrepreneurship through framework approaches," Small Business Economics, Springer, vol. 45(1), pages 1-13, June.
    6. Kisha Lashley & Timothy G. Pollock, 2020. "Dancing with Giants: How Small Women- and Minority-Owned Firms Use Soft Power to Manage Asymmetric Relationships with Larger Partners," Organization Science, INFORMS, vol. 31(6), pages 1313-1335, November.
    7. Lois M. Shelton & Maria Minniti, 2018. "Enhancing product market access: Minority entrepreneurship, status leveraging, and preferential procurement programs," Small Business Economics, Springer, vol. 50(3), pages 481-498, March.
    8. Pan, Mengyang & Hill, James & Blount, Ian & Rungtusanatham, Manus, 2022. "Relationship building and minority business growth: Does participating in activities sponsored by institutional intermediaries help?," Journal of Business Research, Elsevier, vol. 142(C), pages 830-843.
    9. Yyes Robichaud & Jean-Charles Cachon & Egbert Mcgraw, 2018. "Gender Comparisons In Success Evaluation And Sme Performance In Canada," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-26, March.
    10. Ian Blount & Mingxiang Li, 2021. "How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 3-24, July.
    11. Claire Leitch & Frances Hill & Helle Neergaard, 2010. "Entrepreneurial and Business Growth and the Quest for a “Comprehensive Theory†: Tilting at Windmills?," Entrepreneurship Theory and Practice, , vol. 34(2), pages 249-260, March.
    12. Vincent Molly & Eddy Laveren & Ann Jorissen, 2012. "Intergenerational Differences in Family Firms: Impact on Capital Structure and Growth Behavior," Entrepreneurship Theory and Practice, , vol. 36(4), pages 703-725, July.
    13. Herdhayinta, Heyvon & Lau, James & Shen, Carl Hsin-han, 2023. "Cash holdings of minority family businesses in Indonesia," Emerging Markets Review, Elsevier, vol. 55(C).
    14. Lim, Dominic S.K. & Oh, Chang Hoon & De Clercq, Dirk, 2016. "Engagement in entrepreneurship in emerging economies: Interactive effects of individual-level factors and institutional conditions," International Business Review, Elsevier, vol. 25(4), pages 933-945.
    15. Sumit K. Majumdar & Rabih Moussawi & Ulku Yaylacicegi, 2014. "Do Incumbents’ Mergers Influence Entrepreneurial Entry? An Evaluation," Entrepreneurship Theory and Practice, , vol. 38(3), pages 601-633, May.
    16. Matthias Tietz & Simon Parker, 2014. "Charitable donations by the self-employed," Small Business Economics, Springer, vol. 43(4), pages 899-916, December.
    17. Younkin, Peter & Kuppuswamy, Venkat, 2019. "Discounted: The effect of founder race on the price of new products," Journal of Business Venturing, Elsevier, vol. 34(2), pages 389-412.

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