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David Smallbone* I. Introduction A. Entrepreneurship as an Agent of Change It is increasingly recognized that entrepreneurship plays a central role in economic development and that entrepreneurs are key elements of change in market economies.1 However, as well as contributing to the development of more competitive economies, fostering entrepreneurship has increasingly been seen by policy-makers as a means of combating social and economic exclusion, by encouraging enterprise in disadvantaged communities and localities. In this context, entrepreneurship appears to offer a mechanism for drawing marginalized ethnic minorities and immigrant communities into the mainstream of societies and economies, with potential benefits at both the macro and micro levels. There is already a good deal of literature on ethnic minority entrepreneurship focusing on its contribution to social inclusion. By contrast, this particular paper examines the arguments and evidence to support the proposition that ethnic diversity, as such, is a potential source of competitiveness, through the involvement of members of ethnic minorities in entrepreneurship. The involvement of ethnic minorities in entrepreneurial activities has attracted growing interest in recent years for various reasons. One of them is that as well as contributing to reducing social exclusion and raising living standards in groups that
European Yearbook of Minority Issues Online – Brill
Published: Jan 1, 2005
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