Do minority-owned businesses survive longer? Unpacking the role of capability and context through a mixed embeddedness lens

This study examines the survival dynamics of minority-owned businesses (MOBs) through the lens of Mixed Embeddedness Theory, integrating the roles of entrepreneurial capability and local opportunity structure. Using a longitudinal dataset of over 230,000 retail establishments in Los Angeles County (1990–2020), we find that MOBs appear to exhibit longer survival durations than their non-MOB counterparts. However, this survival advantage reverses when entrepreneurial capabilities are accounted for, revealing that MOBs' survival advantage is driven by self-selection: only highly capable minority entrepreneurs pursue and persist in business ownership. Further, we show that this dynamic is contingent on local demographic conditions. Specifically, MOBs experience stronger survival benefits in areas with larger minority populations and higher racial diversity. These findings advance research on MOBs’ survival and offer actionable implications for entrepreneurs, policymakers, and community leaders seeking to foster inclusive economic development. • Minority-owned businesses (MOBs) exhibit longer survival, driven largely by self-selection of highly capable entrepreneurs. • After accounting for entrepreneurial capability, MOBs face significantly higher hazard rates, reflecting structural adversity. • Local demographic context matters: MOB survival improves in areas with larger minority populations and greater racial diversity. • The results show how both owner capability and local environments jointly shape minority business survival.