Perceived Entrepreneurial Ability, Business Relationships, and Performance among Minority and Non-minority Entrepreneurs in the Midwest

This study examines perceived entrepreneurial ability, perceived obstacles to important business relationships, and performance of firms in the Midwest using social learning and social identity theories. From a survey of 68 entrepreneurs, entrepreneurial self-efficacy reduced obstacles to key business relationships and enhanced business performance. Firm age and entrepreneur age did not affect obstacles directly. Minority entrepreneurs were not found to report significantly more obstacles to business relationships but did report more obstacles with increasing firm age than non-minority entrepreneurs. Minority entrepreneurs reported lower firm performance. Relationship obstacles reduced firm performance, but less so for minority entrepreneurs than for non-minority entrepreneurs.