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Success in Ethnic Entrepreneurship

In: Entrepreneurship as a Route out of Poverty

Author

Listed:
  • Tolu Olarewaju

    (Keele University)

Abstract

Entrepreneurship is an important route out of poverty for ethnic minority individuals, particularly for foreign-born migrants and recent arrivals in developed countries. Early-stage entrepreneurial activity among ethnic minority individuals is twice that of the local population in many countries. Ethnic minority entrepreneurs (EMEs) in countries have been responsible for innovative businesses; but they usually face significant challenges, including the lack of financial and social capital, an unfamiliarity with regulations and the host country’s labour market, poor management and communication skills, and the liability of outsidership. Thus, while ethnic minority individuals are already a socioeconomically disadvantaged group, ethnic entrepreneurs are in an even more precarious situation. EMEs are traditionally associated with low-skilled, lower growth, and hence low-return sectors such as retailing, restaurants, fast-food provision, and personal services. This chapter will examine the challenges faced by ethnic minority individuals who want to go into entrepreneurship and how those challenges can be overcome.

Suggested Citation

  • Tolu Olarewaju, 2023. "Success in Ethnic Entrepreneurship," Springer Books, in: Entrepreneurship as a Route out of Poverty, chapter 0, pages 117-127, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-38359-5_6
    DOI: 10.1007/978-3-031-38359-5_6
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