Entrepreneurial failure and discrimination: lessons for small service firms

Linda B. Samuels, Maheshkumar P. Joshi and Yvonne Demory

The Service Industries Journal, 2007, vol. 28, issue 7, 883-897

Abstract: This paper draws lessons from a case decided by the USA Supreme Court, wherein the firm failure was perceived by the minority entrepreneur as an outcome of racial discrimination. Implications of this case are significant because the failure rate of minority-owned US businesses has been consistently higher than the average failure rate of US business. We argue that the impact of discrimination by a customer is greater for small service firms. Through the Domino's Pizza case, we assert that issues relating to equal employment, inter-company contracting and choice of business organisation must be managed by the owner of a service firm.

Date: 2007
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DOI: 10.1080/02642060701882098

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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