Academic journal article New England Journal of Entrepreneurship

Adjustment Strategies and Business Success in Minority-Owned Family Firms

Academic journal article New England Journal of Entrepreneurship

Adjustment Strategies and Business Success in Minority-Owned Family Firms

Article excerpt

The number of minority-owned firms in the United States has grown significantly in the last decade. Data from the U.S. Census Bureau's 2007 Survey of Business Owners found that the number of African American-owned businesses increased by 61 percent between 2002 and 2007 (Minority Business Research Agency, 2013). During that same period, Hispanic - owned businesses increased nearly 44 percent and Asian-owned businesses increased 40 percent, while growth in the number of nonminority business grew by only 9 percent. This growth has led, not surprisingly, to an increasingly large body of knowledge that seeks to explain factors that influence success in minority-owned family firms. Thus far, literature pertaining to the success of minority-owned family businesses has addressed the frequent challenge of geographical (i.e., "spatial") barriers (Dayanim, 2011), the impact of entrepreneurship education (Hussain, Scott, & Matlay, 2010), minorities' ability to access financial capital (Mijid & Bernasek, 2013), the value of minority' business networks (Blount, Smith, & Hill, 2013), and the use of succession planning (Perricone, Earle, & Taplin, 2001).

Minority-owned family firms often face a number of challenges that distinguish them from nonminority-owned family firms (Boissevain, et al., 1990; Danes, Lee, Stafford, & Zachary, 2008; Haynes, Onochie, & Lee, 2008; Shinnar, Cardon, Eisenman, Zuiker, & Lee, 2009). For example, many minorities who own their own businesses (especially those who migrated from another country or whose parents migrated from another country) have a native language other than English. Thus, their hiring pool, their interactions with financial institutions and potential clients, and many other aspects of the dayto-day functioning of the business might be more limited than otherwise. Minority business owners also frequently experience limited financial and human capital (Haynes et al., 2008). Because a large portion of minority-owned family businesses are relatively new, many minority7 owners have not been in existence long enough to build a source of financial capital sufficient to secure the business's long-term survival. Further, many minorities (especially ethnic minorities) come from locations where educational opportunities were not as abundant or effective as those experienced by most nonminorities. Because of these and other challenges, minority small business owners are frequently compelled to devise ways to balance the competing demands of work and family.

Minority family business owners might adopt adjustment strategies in ways that differ from their use among nonminority business owners (Puryear, et al., 2008; Sharma, Chrisman, & Chua, 1997). Few studies address the interconnection between the family and business systems and the use of adjustment strategies, especially among minority-owned family businesses (Stafford & Tews, 2009). Further, the link between the use of adjustment strategies and family business success has also received little attention (Puryear et al., 2008). To address the gap in the literature, the main purpose of this research was to explore ethnic differences in the use of adjustment strategies and the impact on business success across four ethnic groups. Specifically, the first objective was to examine the extent to which different classifi- cations of minority business owners (e.g., Mexican American, Korean American, African American) vary in their use of adjustment strategies and whether these differ from nonminority business owners (i.e., white). The second objective was to examine the relationship between the use of adjustment strategies and the perceived success using data from the 2003 and 2005 National Minority Business Owners Surveys (NMBOS).

This research topic is important because the managerial adjustment strategies used by nonminority or white family firms to balance the demands of work and family have been linked to relevant business outcomes (Olson, et al. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.