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 language | English (US) |
|---|---|
| Pages (from-to) | 1-18 |
| Number of pages | 18 |
| Journal | Small Business Economics |
| DOIs | |
| State | Accepted/In press - May 27 2017 |
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Keywords
- Black entrepreneurs
- Entrepreneurship
- Hispanic entrepreneurs
- Minorities
- New ventures
- Small business programs
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics
Cite this
Enhancing product market access : Minority entrepreneurship, status leveraging, and preferential procurement programs. / Shelton, Lois M.; Minniti, Maria.
In: Small Business Economics, 27.05.2017, p. 1-18.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Enhancing product market access
T2 - Minority entrepreneurship, status leveraging, and preferential procurement programs
AU - Shelton, Lois M.
AU - Minniti, Maria
PY - 2017/5/27
Y1 - 2017/5/27
N2 - 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.
AB - 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.
KW - Black entrepreneurs
KW - Entrepreneurship
KW - Hispanic entrepreneurs
KW - Minorities
KW - New ventures
KW - Small business programs
UR - http://www.scopus.com/inward/record.url?scp=85019700844&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85019700844&partnerID=8YFLogxK
U2 - 10.1007/s11187-017-9881-7
DO - 10.1007/s11187-017-9881-7
M3 - Article
AN - SCOPUS:85019700844
SP - 1
EP - 18
JO - Small Business Economics
JF - Small Business Economics
SN - 0921-898X
ER -