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Compared to Whites, People of Color (POC) in the USA face substantial cultural, structural and institutional challenges on their paths to entrepreneurial success. Many of these challenges have their roots in institutional racism—pervasive discriminatory practices and policies found within institutions. Institutional theory suggests that organizations gain access to institutions and resources when they conform to “appropriate” business practices. How does the reality of institutional racism square with institutional theory when many of those institutions, like banks, are fundamentally afflicted by racist practices and norms? Can another institution, the family, act as a resource substitute to provide POC business owners the necessary resources for success?

Focusing on White-, Black- and Asian-American business owners, the authors analyze data from the USA. Census's Annual Business Survey.

Despite vast performance differences between POC- and White-owned businesses, family firms of every racial group outperform their same-race nonfamily counterparts. Idiosyncratic resources families bring into family firms, known as familiness, appear to help mitigate the challenges to entrepreneurial success that POC face.

Policy makers should consider specific types of support different entrepreneurs require given the kinds of hurdles racial minorities continue to face in the USA.

Despite scholarly attention on family firm heterogeneity, there is scant research on race.

This research is one of the first to explore the implications of institutional racism on institutional theory and the first to employ this concept within the context of family firms.

This chapter explores various structural, socio-cultural and economic factors that have precipitated the significant change in the supply of free family firm workers, specifically women’s unpaid labor. To investigate these concerns, we use longitudinal data from the U.S. Current Population Survey (CPS) and the Bureau of Labor Statistics (BLS). We provide a general overview of critical social, cultural and economic factors impacting women’s opportunities since 1948, with an emphasis on recent historical changes between 1994 and 2020.

We find that, among other factors, the deinstitutionalization of marriage, changing rates of educational attainment, fluctuating labor force participation, economic recessions and women’s rights movements have led to a steep decline in unpaid female family workers. We further assess the distribution of unpaid family workers by industry and by age of worker to build a more nuanced picture of this trend. We sought to determine where these unpaid female workers went --to industry jobs, government work or self-­employment.

Given that complex national-level factors will continue to impact women’s life choices, family firms should consider the short- and long-term impact of the changing social value of women and their roles in family firms. We suggest family firms: ensure appropriate financial compensation for talented women, provide a range of supportive options for work-family balance to increase retention, and consider differential work opportunities for women at the start of their professional lives and those who may be interested in contributing to their families’ business in the later years of their careers.