When entrepreneurship benefits some – but excludes others

Entrepreneurship is often portrayed as open to anyone with a good idea and great drive. But new research shows that the industry that has emerged to support entrepreneurs also risks reinforcing inequalities.

A new study examines how the entrepreneurship industry – together with media narratives about entrepreneurship – influences perceptions of entrepreneurship. The study shows how this shapes our perceptions of which business ideas count and which people are seen as ‘real’ entrepreneurs. The analysis shows that the entrepreneurship industry largely highlights high-tech, fast-growing companies and entrepreneurs who build scalable companies with venture capital.

When privilege becomes an advantage

According to the researchers, this narrow view creates a cultural framework that is better suited to people from privileged backgrounds – for example, those with high levels of education, strong networks and financial resources. These individuals find it easier to understand and use the norms, language and practices that characterize the entrepreneurship industry, such as investor pitches, growth logic and established start-up models.

At the same time, people from less privileged backgrounds risk not recognizing themselves in the dominant image of entrepreneurship. When the ideals of industry do not match their experiences and circumstances, support systems become less useful. As a result, these individuals are more often oriented towards more traditional and slow-growing businesses, rather than towards the highest status growth opportunities.

Patterns that are reproduced

The researchers also show how these patterns tend to be reinforced over time. As privileged entrepreneurs continue to dominate fast-growing companies, industry and media focus on these ideals is confirmed. Thus, inequalities are reproduced rather than broken.

The study also points out that the entrepreneurship industry acts as a double-edged sword. It lowers the thresholds to entrepreneurship, but at the same time contributes to shaping a cultural image of who can succeed – and in what way. The authors therefore argue that a more inclusive view of entrepreneurship requires both entrepreneurship industry players and the media to broaden their narratives of what entrepreneurship can be and who it is for.

More about the article and the authors
The article Empowering or excluding? A cultural perspective on how the entrepreneurship industry reinforces privilege is published in the scientific journal Small Business Economics.

The authors are Christina Kyprianou, IE University, Spain, and Siddharth Vedula, Babson College, USA.