Unraveling the Challenges for Minority Entrepreneurs Affecting Innovative Capabilities and Financial Performance

Adnan ul Haque (), Harmandeep Kaur and Michal Kot
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Adnan ul Haque: Yorkville University
Harmandeep Kaur: Yorkville University
Michal Kot: Czestochowa University of Technology

A chapter in New Challenges of the Global Economy for Business Management, 2025, pp 473-485 from Springer

Abstract: Abstract This research aims to examine the impact of entrepreneurial stress and contributing factors affecting minority entrepreneurs’ innovative capabilities and financial performance. A total of 108 (minority entrepreneurs) valid responses out of 232 were attained through semi-structured matrix-based questionnaire. We employed purposive, convenience, and networking and connection technique to gather data. PLS-SEM was used for quantitative analysis. Findings revealed that entrepreneurial stress negatively affects the innovative capabilities of the minority entrepreneurs. Moreover, the financial performance of the SMEs declines due to occupational stress. Additionally, the innovative capabilities significantly mediate the negative relationship between entrepreneurial stress and financial performance. Findings revealed that lack of mentorship, limited access to financial resources, and systematic discrimination are adversely affecting the financial health of minority-owned business. In addition to that, from the gender dynamics, it is found that minority male entrepreneurs deal with stress more effectively in comparison with minority female entrepreneurs. Findings provide deeper understanding about the challenges faced by minority entrepreneurs affecting their innovative capabilities. Previous studies have not considered the mediating effect while investigating the relationship between variables. Thus, this study enhances the existing body of knowledge through its novel contribution. Furthermore, the novelty of this manuscript is that it links challenges to both innovative capabilities and financial performance, thus exploring the dual impact that was not previous covered by empirical studies.

Keywords: Minority entrepreneurs; Innovative capabilities; Financial performance; Entrepreneurial stress (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-981-96-4116-1_29

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DOI: 10.1007/978-981-96-4116-1_29

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