Mapping entrepreneurial inclusion across <scp>US</scp> neighborhoods: The case of low‐code e‐commerce entrepreneurship

Abstract Entrepreneurship is presented as a path to prosper through commerce, yet there is evidence that certain communities are underrepresented in entrepreneurship. Technological developments such as low‐code e‐commerce tools have altered the barriers to launch commercial ventures. Do these tools alter entrepreneurial inclusion? We study an omnipresent low‐code tool, Shopify, which has dramatically reduced the financial and technical barriers to e‐commerce. We undertake an abductive analysis using unique data on the spatial distribution of Shopify‐based activity for the entire United States. We find evidence of entrepreneurial inclusion; neighborhoods with more Black residents, a group historically underrepresented in entrepreneurship, also have more low‐code ventures. We interpret these results against traditional forms of startups: newly registered businesses and VC‐backed e‐commerce ventures. These benchmark analyses further support our findings. Managerial Summary We consider the impact of recent technological changes that make it easier to start entrepreneurial ventures. We study the spatial uptake of a popular low‐code e‐commerce tool, Shopify, that makes launching and running an online business markedly cheaper and easier. Using data on nearly 160,000 Shopify‐based ventures across the entire United States, we find that usage of Shopify is more prevalent in neighborhoods with more Black residents. The pattern is distinct from that observed for traditional ventures and VC‐backed start‐ups. The evidence suggests low‐code tools represent a novel path to entrepreneurship, enhancing entrepreneurial access and potentially opening previously under‐explored markets. The finding further highlights the role of new tools (e.g., low‐code or AI‐driven) as a possible addition to policies aimed at enhancing entrepreneurial inclusion.