Ethiopian and Eritrean Businesses Growth Barriers in the Washington, DC Area

Ethiopian and Eritrean Businesses Growth Barriers in the Washington, DC Area by Sereke-Berhan Meres Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University August 2016 Abstract Prior studies have revealed that recent Asian and Hispanic immigrant entrepreneurs have made significant contributions to social change in the United States. Although African immigrant entrepreneurs have made such contributions, few studies exist about them, and there is limited knowledge about this business community. The purpose of this qualitative case study was to identify the barriers of growth in Ethiopian and Eritrean immigrantowned firms in the Washington, DC area who were in business for a minimum of 3 years, and represented various trade lines and geographical locations. The enhanced integrated model of ethnic business development, which proposes growth strategies by analyzing the interaction of opportunity structures, ethnic resources, and entrepreneurial and management skills, was used as the conceptual framework to guide this study. Semistructured interview data were gathered from the business owners and then analyzed by employing a pattern matching technique. The data analysis revealed the themes of management deficiencies and the lack of organizational support system as the main growth barriers of the firms studied. These findings suggested the improvement of management skills and the creation of an organizational support system. This effort demands a collaboration of public, private, and community organizations. The results of this study may have positive social change implications to local economies by facilitating the growth of immigrant-owned businesses and enhancing their job and income-creating potential.Prior studies have revealed that recent Asian and Hispanic immigrant entrepreneurs have made significant contributions to social change in the United States. Although African immigrant entrepreneurs have made such contributions, few studies exist about them, and there is limited knowledge about this business community. The purpose of this qualitative case study was to identify the barriers of growth in Ethiopian and Eritrean immigrantowned firms in the Washington, DC area who were in business for a minimum of 3 years, and represented various trade lines and geographical locations. The enhanced integrated model of ethnic business development, which proposes growth strategies by analyzing the interaction of opportunity structures, ethnic resources, and entrepreneurial and management skills, was used as the conceptual framework to guide this study. Semistructured interview data were gathered from the business owners and then analyzed by employing a pattern matching technique. The data analysis revealed the themes of management deficiencies and the lack of organizational support system as the main growth barriers of the firms studied. These findings suggested the improvement of management skills and the creation of an organizational support system. This effort demands a collaboration of public, private, and community organizations. The results of this study may have positive social change implications to local economies by facilitating the growth of immigrant-owned businesses and enhancing their job and income-creating potential. Ethiopian and Eritrean Businesses Growth Barriers in the Washington, DC Area by Sereke-Berhan Meres Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Management Walden University August 2016 Dedication I dedicate this work to honor all immigrant entrepreneurs who see and seize the opportunities the United States provides, and build enterprises that bring positive social change by creating jobs and generating income. Acknowledgement This journey would have been impossible without the encouragement and support of many people. Foremost, I would like to thank my committee chair, Dr. Howard B. Schechter, and the other committee members, Dr. Joseph E. Barbeau and Dr. James Bowman for their guidance and constructive suggestions that enriched the research. Thanks to all Walden University faculty and staff for their professional support. My special thanks go to my family, relatives and friends that gave me their love and encouragement to work hard during this journey. I also would like to thank the staff of Burke Center Public Library, in Fairfax, Virginia for their warm reception and support. My greatest gratitude goes to Almighty God for giving me the courage and resilience to overcome difficult moments and reach the finish line.