The great recession and precarious wealth among middle-class Mexican-Origin entrepreneurs

Entrepreneurial activity is perceived to function as a catalyst for economic mobility and wealth creation among immigrant minorities, which in turn facilitates the reproduction of their wealth and businesses from one generation to the next. Yet, the United States Great Recession of 2008 had a devastating impact on the accumulated wealth of Latino entrepreneurs, widening a racial wealth gap that shows little signs of narrowing. This qualitative study investigates the significance of the recession on the wealth of and prospects for entrepreneurial succession among fifty middle-class Mexican-origin business owners in El Paso, Texas, between 2009 and 2012, at the tail of the Great Recession and its aftermath. Findings reveal that business owners conveyed optimism about withstanding the recession and entrepreneurial succession; however, limited wealth belied that optimism, triggering downsizing that weakened the stability and solvency of their businesses. Ultimately, the Great Recession had a negative impact on the wealth accumulation and business performance of middle-class Mexican-origin entrepreneurs, with observed differences by gender. This study challenges traditional assumptions that entrepreneurship is associated with wealth creation and entrepreneurial succession, underscoring the need to consider how structural forces in the economy condition the entrepreneurial outcomes and economic integration of immigrants and their descendants.