Power relations and outsider entrepreneurship: facets of marginalisation tendencies towards migrant entrepreneurs

Abstract

Purpose Power relations within entrepreneurial ecosystems (EEs) are crucial for fostering cooperation among entrepreneurs and ecosystem actors and driving local development and economic advancement. This study examines the social position and marginality of migrant entrepreneurs, a significant yet often overlooked group in traditional entrepreneurship discourse. It explores how power relations and differences manifest in migrant entrepreneurs' founding processes and how they address emerging challenges. Design/methodology/approach This qualitative case study uses field and practice angles on power theory to explore the marginalisation of migrant entrepreneurs in a German Ruhr Area city with a history of immigration. Pairing deductive and inductive principles, the analysis of 23 in-depth interviews explores the many faces of power for migrant entrepreneurs and how they are dealt with. Findings The study identifies three key areas – knowledge, language competence and network affiliation – that shape power relations for marginalised entrepreneurs and influence their perceptions, behaviours and outcomes. Addressing these areas is crucial for creating more equitable and sustainable EEs. Despite structural disadvantages, migrant entrepreneurs use their agency to bridge divides and balance power differences within EEs. Originality/value This research develops a power- and hierarchy-informed lens for entrepreneurship and EEs, drawing on existing power theories from other social science disciplines. It highlights the significance of studying “socio-cultural outsiders” in entrepreneurship and reveals how friction, imbalance and dysfunctionality arise within EEs as inherently social and stratified contexts and how minoritised entrepreneurs cope.