IDEAS home Printed from
   My bibliography  Save this article

Co-ethnic markets: Financial penalty or opportunity?


  • Shinnar, Rachel S.
  • Aguilera, Michael B.
  • Lyons, Thomas S.


This paper applies the view of resource based theory to minority entrepreneurship. It examines minority entrepreneurs’ reliance on co-ethnic markets in terms of the impact this has on the financial performance of their firms. This research focuses on three minority groups in particular: African Americans, Korean Americans and Mexican Americans. Findings indicate that owner's age and marital status, but not business age, shape the extent to which a business owner relies on co-ethnic clients. Furthermore, Korean American owned firms are less likely to have high proportions of co-ethnic clients compared to Mexican- and African American owned firms. Having a large co-ethnic clientele results in a financial penalty in terms of the revenue an owner draws from his or her business. This penalty occurs in businesses owned by all three groups of entrepreneurs. Findings lend support to the resource based theory view of the firm in terms of the need to dynamically apply resources in order to achieve a competitive advantage. Implications for theory and practice are discussed.

Suggested Citation

  • Shinnar, Rachel S. & Aguilera, Michael B. & Lyons, Thomas S., 2011. "Co-ethnic markets: Financial penalty or opportunity?," International Business Review, Elsevier, vol. 20(6), pages 646-658.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:6:p:646-658
    DOI: 10.1016/j.ibusrev.2011.02.014

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Marie T. Mora & Alberto Dávila, 2006. "Mexican Immigrant Self-Employment Along the U.S.-Mexico Border: An Analysis of 2000 Census Data," Social Science Quarterly, Southwestern Social Science Association, vol. 87(1), pages 91-109.
    2. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
    3. Michael Aguilera, 2009. "Ethnic enclaves and the earnings of self-employed Latinos," Small Business Economics, Springer, vol. 33(4), pages 413-425, December.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Jiang, Guohua & Kotabe, Masaaki & Hamilton, Robert D. & Smith, Sheryl Winston, 2016. "Early internationalization and the role of immigration in new venture survival," International Business Review, Elsevier, vol. 25(6), pages 1285-1296.
    2. Alessandro Arrighetti & Daniela Bolzani & Andrea Lasagni, 2014. "Beyond the enclave? Break-outs into mainstream markets and multicultural hybridism in ethnic firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(9-10), pages 753-777, December.
    3. repec:kap:jinten:v:15:y:2017:i:3:d:10.1007_s10843-017-0203-6 is not listed on IDEAS


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:20:y:2011:i:6:p:646-658. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.