The topic: Minority entrepreneurs often rely on the support of immigrant enclaves and other cultural ties to launch and grow new ventures. This support often includes financial assistance , enhanced access to labor , and a sense of shared identification with consumers . This support is important because minority entrepreneurs often face hurdles in attracting financing, accessing education , and even discrimination
However, the support that minority communities provide to minority entrepreneurs can often constrain these entrepreneurs . Minority entrepreneurs are often pressured to limit their services to minority communities, and growth outside these communities can be seen as betrayal . At the same time, because so many resources were derived from investors and others in the community, resource providers may feel entitled to become involved in the decision making in the venture .
Although scholars have examined the implications of enclave support for minority entrepreneurs, no research has yet examined the question of how enclave support can influence entrepreneurs’ decision to exit their venture. Exit is defined as the process by which the founders of privately held firms leave the firm they helped to create; thereby removing themselves, in varying degree, from the primary ownership and decision-making structure of the firm . Filling this gap is important because exit is an extremely important element of the entrepreneurship process, and all entrepreneurs eventually exit their ventures. The influence that minority enclaves may have on entrepreneurs’ decision to exit can influence the way entrepreneurs plan exit, which in turn, can have implications for the ventures they create.
The research question: In this study, I plan to examine the relationship between minority enclave support and minority entrepreneurs’ exit decisions. Specifically, I seek to address two research questions. First, what are the pressures and expectations that enclave supporters place on entrepreneurs in terms of exit planning? Second, how do minority entrepreneurs respond to and accept or reject these pressures?
My study: To answer these research questions, I intend to use the following methodology. I will conduct semi-structured interviews to 10 minority entrepreneurs who are operating in distinct minority enclaves/communities. Other 10 resource providers who are also members of the minority enclaves, would also be interviewed with semi-structured interviews. Then number of interviewees is subject to change if needed through the research.
Contributions: I seek to make two contributions to the theory and practice of minority entrepreneurs and the influence of their supporters on the entrepreneur’s exit decision. First, the outcomes of this research would provide the knowledge and understanding of the effect that enclave supporters place on entrepreneurs. This will provide insights of how the enclave supporters influence the exit strategy that minority entrepreneurs have to adopt, and in this way, influence also the ventures that minority entrepreneurs create. Secondly, my research will provide an understanding of the reaction and response of minority entrepreneurs to the impact of enclave supporters, and it will also dictate the chance that this influence has an impact on the decision for minority entrepreneurs to exit their venture. My research would also have practical implications. It will provide useful tools to improve how entrepreneurship is taught in college nowadays, and it will also be helpful for policy makers when trying to improve and support minority entrepreneurship.