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Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective

The objective of this study was to unravel the challenges confronting women of color (WoC)-owned small and medium-sized enterprises (SMEs) in the United States. This is based on findings that most WoC-owned SMEs fail within the first few years of establishment. The impact of the global financial cri...

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Autores principales: Koul, Saroj, Taylor, Ivan W., Falebita, Oluwabunmi A., Ono, Takuma, Chen, Rowland, Vogel, Mia T.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9463677/
http://dx.doi.org/10.1007/s11365-022-00806-5
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author Koul, Saroj
Taylor, Ivan W.
Falebita, Oluwabunmi A.
Ono, Takuma
Chen, Rowland
Vogel, Mia T.
author_facet Koul, Saroj
Taylor, Ivan W.
Falebita, Oluwabunmi A.
Ono, Takuma
Chen, Rowland
Vogel, Mia T.
author_sort Koul, Saroj
collection PubMed
description The objective of this study was to unravel the challenges confronting women of color (WoC)-owned small and medium-sized enterprises (SMEs) in the United States. This is based on findings that most WoC-owned SMEs fail within the first few years of establishment. The impact of the global financial crisis resulting from the COVID-19 pandemic on WoC-owned SMEs was also explored. System Dynamics (SD) is a computational modeling approach useful for understanding changes in a system over time and is applied in this study to illustrate WoC entrepreneurs' navigation through the startup and maturation of SMEs. The authors calibrated and validated the model with publicly available data. Findings revealed that more emphasis should be placed on failure reduction in the early years of establishment of these businesses. Also, there is the need for early intervention rather than focusing on the improvement of the successful business exit from the system. Results indicated that the creation of new businesses by WoC after the failure of existing businesses produced an increase in the number of failed enterprises. The authors assert that attention must be paid at the individual level through support to the entrepreneur. This study contributes to the extant literature by providing the first known SD model useful in depicting the SME system for WoC entrepreneurs in the US. The model serves as a potentially useful tool for informing effective policy making, education, and programmatic approaches to support the success of WoC entrepreneurs in the US.
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spelling pubmed-94636772022-09-10 Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective Koul, Saroj Taylor, Ivan W. Falebita, Oluwabunmi A. Ono, Takuma Chen, Rowland Vogel, Mia T. Int Entrep Manag J Article The objective of this study was to unravel the challenges confronting women of color (WoC)-owned small and medium-sized enterprises (SMEs) in the United States. This is based on findings that most WoC-owned SMEs fail within the first few years of establishment. The impact of the global financial crisis resulting from the COVID-19 pandemic on WoC-owned SMEs was also explored. System Dynamics (SD) is a computational modeling approach useful for understanding changes in a system over time and is applied in this study to illustrate WoC entrepreneurs' navigation through the startup and maturation of SMEs. The authors calibrated and validated the model with publicly available data. Findings revealed that more emphasis should be placed on failure reduction in the early years of establishment of these businesses. Also, there is the need for early intervention rather than focusing on the improvement of the successful business exit from the system. Results indicated that the creation of new businesses by WoC after the failure of existing businesses produced an increase in the number of failed enterprises. The authors assert that attention must be paid at the individual level through support to the entrepreneur. This study contributes to the extant literature by providing the first known SD model useful in depicting the SME system for WoC entrepreneurs in the US. The model serves as a potentially useful tool for informing effective policy making, education, and programmatic approaches to support the success of WoC entrepreneurs in the US. Springer US 2022-09-10 2022 /pmc/articles/PMC9463677/ http://dx.doi.org/10.1007/s11365-022-00806-5 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
Koul, Saroj
Taylor, Ivan W.
Falebita, Oluwabunmi A.
Ono, Takuma
Chen, Rowland
Vogel, Mia T.
Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title_full Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title_fullStr Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title_full_unstemmed Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title_short Examining the success of women of color-owned small and medium-sized enterprises in the United States: A system dynamics perspective
title_sort examining the success of women of color-owned small and medium-sized enterprises in the united states: a system dynamics perspective
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9463677/
http://dx.doi.org/10.1007/s11365-022-00806-5
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