Seminar - Ahmed Sewaid

Ahmed Sewaid (Prince Mohammed Bin Salman College) will present his paper “Race to opportunity: The missing minority entrepreneurs,” along with Shaker Zahra (University of Minnesota). 

Abstract:

This study investigates the mechanisms underlying the persistent underrepresentation of racial minorities in entrepreneurial activity. Drawing on structuration theory, we examine how structural forces and individual agency dynamically interact to reproduce racial disparities. Specifically, we theorize that the historical fundraising performance of an entrepreneur's racial group on crowdfunding platforms serves as a memory trace, shaping the behaviors of both entrepreneurs and fund providers. Utilizing data from Kickstarter, we find that positive historical performance of a racial group generally enhances resource allocation to entrepreneurs from that group; however, racial biases cause fund providers to discount minorities’ prior successes and amplify their failures, thus limiting resources allocated to minority entrepreneurs. Similarly, minority entrepreneurs internalize this biased evaluation by discounting their group’s successes and overemphasizing its failures, leading to lower participation rates. Our results highlight a recursive interplay where biased resource allocation and reduced participation mutually reinforce structural barriers, perpetuating racial disparities. By integrating structural and agentic perspectives, this study advances entrepreneurship theory, providing new insights for researchers, policymakers, and practitioners committed to fostering more equitable entrepreneurial ecosystems.