Enhancing product market access: Minority entrepreneurship, status leveraging, and preferential procurement programs

Lois M. Shelton, Maria Minniti

Research output: Contribution to journalArticle

3 Scopus citations

Abstract

Access to product markets is a key barrier faced by minority entrepreneurs. Preferential procurement programs, which include government set-asides and commercial supplier diversity initiatives, are intended to aid these entrepreneurs in overcoming this barrier. Although the first programs resulted in minimal improvements due to design flaws and poor oversight, some recent initiatives have been redesigned to address these inadequacies. Using a qualitative approach, we examine the impact of these programs on product market access and present a conceptual model of their effect on the opportunity identification, evaluation, and exploitation of Black and Hispanic entrepreneurs. Our analysis suggests that preferential procurement programs may expand product market access by improving the information available to entrepreneurs and by altering the incentives of key resource providers. As a result, these programs may actually enable some minority entrepreneurs to achieve rapid expansion (high-growth entrepreneurs) and others to overcome personal limitations and establish viable enterprises (lower growth entrepreneurs) by leveraging their minority status.

Original languageEnglish (US)
Pages (from-to)1-18
Number of pages18
JournalSmall Business Economics
DOIs
StateAccepted/In press - May 27 2017

Keywords

  • Black entrepreneurs
  • Entrepreneurship
  • Hispanic entrepreneurs
  • Minorities
  • New ventures
  • Small business programs

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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