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2022 | Book

Disadvantaged Minorities in Business

Editors: Prof. Dr. Léo-Paul Dana, Dr. Nada Khachlouf, Prof. Adnane Maâlaoui, Dr. Vanessa Ratten

Publisher: Springer International Publishing

Book Series: Contributions to Management Science


About this book

This book features contributions by international scholars who have worked to establish a theory- and empirics-based discussion on disadvantaged minorities and long-term economic development. Depending on their socio-demographic characteristics, minorities have long lived under the shadow of the groups, categories, or communities they presumably belong to. Despite the obstacles they have to face, they manage to demonstrate that, above all, they are entrepreneurs capable to start, run, and successfully complete their venture. Their motivations are often assimilated by the research community into “necessity entrepreneurship.” In addition to the external barriers they face, they have to overcome endogenous cognitive factors that hinder their entrepreneurial intention: anxiety before the future, the anguish of death, generativity, health condition as perceived by others, subjective age, and the cultural gap as viewed by natives, among others.

The book integrates a diversity of challenges and disadvantages faced by entrepreneurs, allowing the reader to have a renewed understanding of entrepreneurial behavior. On the theoretical level, the chapters emphasize the need for integrating entrepreneurship theory with multidisciplinary approaches, such as the Theory of Cumulative Disadvantage/Advantage (CDA), cultural and geographical theories, and psychological theories. On the practical level, this book would raise the awareness of policy makers, mainly governmental and nongovernmental organizations concerning the disadvantages, and helping them adjust their actions either for local or international programs.

Chapter "Intersectionality and Minority Entrepreneurship: At the Crossroad of Vulnerability and Power" is available open access under a Creative Commons Attribution 4.0 International License via

Table of Contents

Introduction to this Book
The relevance of minority entrepreneurship for both academics and policy-makers has been steadily growing during the last decades; minority businesspersons proved to stimulate positive social change and promote economic prosperity. However, they still face multiple structural and social barriers to both entering the business market and further expanding their enterprises. Presenting case studies from all over the world, the collected chapters of the current book aim at making a contribution into the debates on constraints to business activities of disadvantaged social groups and, in the longer run, into creation of a more inclusive business environment.
Ekaterina Vorobeva
Job Loss in the Pandemic Disruption in Egypt: A Push to Start a Business?
The Coronavirus caused severe losses, many owner-managers lost their businesses, and many employees lost their jobs. This raises the question of whether such losses were a push into traumatic resignation or a push to start a business? And what are the main factors that influence responses? This chapter aims to answer these questions by drawing on the Theory of Planned Behaviour in order to help advance the scarce literature on entrepreneurial intentions under adverse conditions. We build and test a model of entrepreneurial intention highlighting entrepreneurial mindset (self-efficacy and opportunity perception) and social capital as core determinants of entrepreneurial intention. Using a sample of 1777 owner-managers and employees in Egypt surveyed by the Global Entrepreneurship Monitor (GEM), results of logistic regression reveal that former owner-managers, who had just lost their business, were less entrepreneurially minded and networked less than their continuing counterparts. Former employees, who had just lost their job, were no more entrepreneurially minded than their continuing counterparts. Results also show that self-efficacy and opportunity perception play a key role in promoting people’s entrepreneurial intention. The findings contribute to the debate on predictors of entrepreneurial intention in hostile environments and developing countries; and pave the way for studies on whether disadvantages such as the COVID-19 pandemic prompt a new type of entrepreneurship where necessity aligns with opportunity.
Nada Rejeb, Seham Ghalwash, Thomas Schøtt
Disadvantaged Migrant Entrepreneurs and Their Selection of Location: Entrepreneurial Settlement and Making a “Home” Abroad
Economic migration and refugees have been in the epicentre of attention recently. Social and political debates discuss the length of their stay, possible return and integration policies, approaching migrants often as objects, not as individuals with agency and entrepreneurial endeavours regarding settlement. However, many migrants develop entrepreneurial strategies related to a particular place and accessible resources. These coping-location strategies without ethnic enclave pull have received little attention. In many smaller cities and villages, the role of such newcomers can be fundamental for the local economy counterbalancing migration to urban areas. This study presents location choice and particular location-relationships of disadvantaged migrants in a small town of Klagenfurt, Austria. Contrary to some expectations, their relationship to the new “home” is emotional, strong and permanent, and central to their entrepreneurship. We suggest that this type of disadvantaged migrant entrepreneurship with new local roots is a specific non-mobile category different from the ethnic enclave settlement.
Maria Elo, Muhammad Zubair, Xiaotian Zhang
Immigrant Entrepreneurship and Dynamics of Being (Dis)Advantaged: An Exploratory Multi-Case Study of Eastern European Origin Immigrant Entrepreneurs in the Nordic Context
This chapter focuses on the interlink between immigrant entrepreneurs, the gig economy, and the dynamics of being (dis)advantaged in a developed European economy’s (Denmark) context. Based on in-depth qualitative case studies of eight (8) gig economy entrepreneurs originally from Eastern European countries Lithuania, Latvia, Romania, and Slovakia, we found that being (dis)advantaged immigrant entrepreneurs is not that black and white phenomenon. We further found that most entrepreneurial ventures were started due to the inability of the immigrant to find a job in the area of his study or interest, mostly due to barriers to entry into the labor market. Significant differences in the dynamics of being disadvantaged based on sector of gig economy operations, where in highly skilled sectors, this phenomenon was less visible. We also found that ease of doing business in Denmark and available help for entrepreneurship played a key role in the start and later growth of gig economy entrepreneurial ventures of these immigrant entrepreneurs. Finally, the case respondents highlighted that despite certain prejudices that may lead to a disadvantaged position, language skills, as well as a supportive institutional framework, play an important role in diluting those influences.
Veronika Kentosová, Nasib Al-Nabulsi, Ahmad Arslan, Ismail Golgeci
Exploring the Entrepreneurial Challenges of Disabled Entrepreneurs in a Developing Country
Creating the proper conditions to change the attitude and mentality of those with disabilities towards creativity, innovation, and entrepreneurship in Iran is classified as one of the general and specific issues, accompanied by concerns over solving the challenges in entrepreneurship and startups shaped by people with disabilities (PWDs). The study tried to examine the opportunities available in Iran to identify the entrepreneurial challenges of the disabled and provide strategies to create and develop startups launched by the disabled. The study used the grand theory method to determine the entrepreneurial challenges of the disabled and five relevant basic factors (institutional, environmental, developmental, social, and personal factors) as causal conditions. Furthermore, effective intervention and context for identifying strategies and presenting outcomes have been conducted according to the library studies and analysing and reviewing interviews with six active and top disabled entrepreneurs in the field of startups and businesses. Among the findings were attention to the role of government and reforming social attitudes to increase the economic activities of the disabled by prescribing four indigenous propositions to reduce the challenges in the process of creating startups shaped by the disabled, firstly to their presence in the economic cycle and social influence, and secondly, for developing entrepreneurs with disabilities and creating self-employment, sharing knowledge and experiences among them.
Aidin Salamzadeh, Léo-Paul Dana, Samira Mortazavi, Morteza Hadizadeh
Refugee Entrepreneurship in Germany: An Institutional Voids Perspective
In 2015 and 2016, forced migration led to a large influx of refugees to Germany. In general, Germany has a low percentage of entrepreneurs and at the same time, many studies have reported a higher propensity of migrants engaging in entrepreneurship. Nevertheless, refugee entrepreneurship is hardly a topic in Germany, neither in common media nor in research. Drawing on the concept of institutional voids, we explore the characteristics of refugee entrepreneurs and ask which institutional voids do refugee entrepreneurs face in Germany.
Our method is based on qualitative semi-structured interviews, but on a two-step basis. In the first round, we interviewed 20 refugees on their general perceptions of labor market integration. In the second round, we conducted seven detailed case studies with refugee entrepreneurs in Germany.
We can show that many refugee entrepreneurs are necessity entrepreneurs due to perceived disadvantages in the labor market. Furthermore, we demonstrate that institutional voids do not just exist in emerging economies, as most literature suggests, but can also exist in the developed world in times of crisis and capacity overload. Lastly, we demonstrate the role of specific social capital in bridging some of the voids.
Tine Lehmann, Hussam Albaba, Susanne Kreiter-Sammet
A Disadvantage to an Advantage? Immigrant Entrepreneurs’ Use of Effectuation in Business Start-Up and Development in the Kingdom of Saudi Arabia
This chapter explores how immigrants start and develop businesses in the context of the Kingdom of Saudi Arabia. Using cumulative advantage/disadvantage theory in conjunction with effectuation, the chapter outlines immigrants’ initial resources/means position and how it can be an advantage or a disadvantage for entrepreneurship. The chapter findings illustrate that immigrants use effectuation to either mitigate an initial disadvantaged position or build on an initial advantaged position at the business start-up. The effects are different between first- and second-generation immigrants. Using these findings, the chapter proposes a conceptual framework combining both cumulative advantage/disadvantage theory and effectuation and outlines theoretical, empirical, and policy implications.
Maryam Fozia, Nadeera Ranabahu
From Retirement to Entrepreneurship Through Skills, Attitude, and Technological Innovation
Indian start-up space is dominated by young entrepreneurs but for starting an enterprise age does not matter. Senior entrepreneurship has come into the picture as people even after attaining a mature age seem to be willing to achieve new goals. After retirement, they might not want to be a burden to the economy but rather be active contributors. Thus, the following study was conducted among people above the age of 50 years in India to identify their entrepreneurial intentions. The study also aimed to find the impact of personal attitude, personal digital innovation, and entrepreneurial skills on entrepreneurial intentions. The sample of the study included 111 respondents from whom the data was collected using a standardized questionnaire. The results of the study were analyzed using correlation and regression analysis. It was found that at present people in India belonging to the mature age group do not seem to be in high agreement toward starting their venture. However, the variables like personal attitude and entrepreneurial skills have a significant and positive influence on their entrepreneurial intentions. Several suggestions have been provided at the end to enhance their interest in senior entrepreneurship.
Rupa Rathee, Pallavi Rajain
Women and Wealth Creation: Investigating Financial Self-Efficacy Differences Versus Men as a Barrier
Gender inequality continues as a broad issue, despite many studies and pursuant actions in an organizational context. Highly concerning, and the focus of this chapter, is the actual wealth creation inequality, exemplified by the lack of women on the top end of the wealth curve. The impact of financial literacy and self-efficacy is investigated through a research survey to support understanding of the influence of this financial self-efficacy on women’s wealth creation versus men. The evidence gathered disputed the thinking by showing that although there is no significant difference in financial self-efficacy, there continues to exist a significant wealth difference favouring males. It did present future research potential towards understanding then the adjacent factors, such as motivation, that could explain the lack of wealth creation, where financial literacy and self-efficacy are equal to men.
Warren Lloyd
“Home Away From Home”: Displaced Migrant Entrepreneurship in Times of Covid-19
The unprecedented Covid-19 pandemic crisis has put entrepreneurship at bay. Scholars swiftly started investigating the impact of the pandemic on entrepreneurship in all possible manners. However, there is a distinct entrepreneurial agent; displaced migrant entrepreneurs (DME) are often understudied and underrepresented in the entrepreneurship literature. Against this background, this study explores the influence of the Covid-19 pandemic on the displaced migrant entrepreneurship. Two research questions were raised in this study: i) What are the challenges faced by displaced migrant entrepreneurs during the Covid-19 pandemic? and ii) How are displaced migrant entrepreneurs dealing with the Covid-19 pandemic? To answer these research questions, this qualitative study conducted 10 in-depth interviews with DME in developing countries and identified three distinct mechanisms: i) Disconnectedness from their homeland, ii) Rootlessness in host county, and iii) Reassessing the resource in hand. The study findings reveal that DME have a double disadvantage, unlike other migrant entrepreneurs, since it is hard for them to use the host and home country resources. It also demonstrates that DME show resilience during the pandemic by utilising the resource at hand. This study contributes to the discussion on DME by exploring the unique context and highlighting the DME responses during the pandemic.
Tenzin Yeshi

Open Access

Intersectionality and Minority Entrepreneurship: At the Crossroad of Vulnerability and Power
Intersectionality has been introduced into research on minority entrepreneurship relatively recently but has already managed to make a significant contribution into better understanding of the phenomenon. The analytical framework helps to describe in more detail a complex structure of opportunities and constraints that a minority entrepreneur is embedded into. However, extreme diversity in topics and focuses among relevant studies poses a challenge to identification of general tendencies within intersectional minority entrepreneurship. The current chapter intends to take on this challenge and to contribute to better understanding of the role intersectionality plays in minority entrepreneurship. The current overview of literature points at the factors that appear to unite all minority businesspersons across various axes of difference; intersectional identities of minority entrepreneurs lead to limited legitimacy in the business market. This limited legitimacy, on the one hand, constitutes an impediment to numerous lucrative industries dominated by mainstream entrepreneurs but, on the other hand, may become a source of competitive advantage in a few gendered, ethnicized, or other niche markets. To ensure that minority businesspersons are not restricted to low-income, labour-intensive sectors with limited potential for growth, deconstruction of the archetype of an entrepreneur through tailored support and diversity initiatives may present the first steps on the way to creation of a more inclusive business environment.
Ekaterina Vorobeva
Disadvantaged Minorities in Business
Prof. Dr. Léo-Paul Dana
Dr. Nada Khachlouf
Prof. Adnane Maâlaoui
Dr. Vanessa Ratten
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