Author Type

Graduate Student

Date of Award

Summer 7-4-2026

Document Type

Dissertation

Publication Status

Version of Record

Submission Date

July 2026

Department

Management Programs

College Granting Degree

College of Business

Department Granting Degree

Management Programs

Degree Name

Doctor of Philosophy (PhD)

Thesis/Dissertation Advisor [Chair]

Mark Kohlbeck

Abstract

Minority-owned microenterprises play a critical role in economic development in underserved communities in the United States, yet persistent disparities in business performance remain. Prior research suggests that Black- and Hispanic-owned microenterprises face lower profitability and revenue relative to their White-owned counterparts, reflecting structural constraints such as limited access to capital, professional networks, and digital resources. As artificial intelligence (AI) becomes increasingly embedded in entrepreneurial decision-making, an important question is whether strategic AI use mitigates or reinforces these disparities. Drawing on the resource-based view (RBV) and critical race theory (CRT), this study examines whether strategic AI use moderates the relationship between minority ownership and microenterprise performance.

Using data from the 2024 Entrepreneurship in the Population (EPOP) survey, ordered logistic regression models are employed to analyze profitability and revenue outcomes across Black-, Hispanic-, and White-owned firms. The results provide partial support for Hypothesis 1: minority ownership is only weakly associated with lower profitability (marginally significant, one-tailed) and shows no consistent differences in revenue once controls are included. In contrast, strong support is found for the moderating role of strategic AI use in profitability outcomes. Strategic AI use significantly attenuates, and in some cases reverses, the negative association between minority ownership and profitability. However, no moderating effect is observed for revenue outcomes.

These findings suggest that while baseline performance disparities are modest and context-dependent, strategic AI use functions as a conditional resource that can reduce profitability gaps among minority-owned firms. The results contribute to the literature on racialized entrepreneurship and AI use by demonstrating that the performance effects of AI use may vary across organizational contexts and outcomes. Policy implications highlight the importance of targeted AI access, digital capability development, and equitable technology diffusion to ensure that emerging technologies contribute to inclusive economic growth.

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