Barriers and Mitigating Strategies of Entrepreneurial Business Growth: The Role of Entrepreneur Race and Gender

Abstract

Abstract In this study, we investigate the obstacles to growth and the mitigating strategies of high-performing (over $1 million in revenues) entrepreneurial businesses, and how these differ between businesses owned by Black and White entrepreneurs and between female and male entrepreneurs. Data were collected through semi-structured interviews and qualitatively analyzed using grounded theory and thematic analysis methods. Findings reveal that the lack of access to capital is faced by all groups of entrepreneurs, but that Black and female entrepreneurs additionally faced racial discrimination and gender bias obstacles to their business growth. While all entrepreneurs used social capital strategies to mitigate the barriers to growth that their businesses faced, Black and female entrepreneurs additionally employed faith and prayer as well as business engagement in governmental and corporate diversity initiatives as strategies to overcome the obstacles. Implications of the findings for the entrepreneurial business growth of racial/ethnic minority and female-owned firms are discussed.