Barriers,constraints and entrepreneurial action: The case of nascent African American entrepreneurs

Abstract

Existing research documents numerous important barriers minority entrepreneurs face; yet, the specific impact of these challenges on their entrepreneurial process and actions for minorities remains underexplored. This article employs semi-structured interviews with 41 nascent African American entrepreneurs to explore the impact of specific barriers they face on the decisions they make and the actions they take to develop their business. Findings reveal that the entrepreneurs in this study were severely resource-constrained, which influenced the types of ventures they initiated and their strategies for navigating barriers. To overcome growth challenges and attempt to achieve financial viability, participants adopted a ‘growth through augmentation’ strategy, starting additional businesses rather than scaling a single venture. This article enhances our understanding of the barriers and particular entrepreneurial landscape that nascent African American entrepreneurs must navigate. These findings contribute significantly to the literature on minority barriers and entrepreneurial action, to policymaking in support of these entrepreneurs and to entrepreneurship education designed for them.