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Purpose

The aim of this paper is to review and synthesize an interdisciplinary literature on ethnic entrepreneurship studies from a spatial perspective. The major goal is to develop an analytical framework for understanding how place plays a role in ethnic entrepreneurship processes at different geographic scales.

Design/methodology/approach

The article starts with a review of perspectives on ethnic entrepreneurship from multiple disciplines in social sciences, mainly from a non‐spatial approach. It then critically discusses the spatial inquiries on ethnic entrepreneurship, with a focus on identifying the gaps across disciplines. Based on these discussions, a comprehensive, multilevel spatial framework is finally conceptualized. Following that, the concluding remarks highlight future directions and public policy significance by implementing this suggested social‐spatial approach.

Findings

As the central social actors, ethnic entrepreneurs weave through multiscaled geographic contexts in the process of creatively mobilizing and capitalizing entrepreneurial resources in the labor markets. The multiscaled geographic contexts provide a milieu of social, economic, political, cultural, and regulatory factors and forces. The interaction between the social actors and their social‐spatial contexts further influences entrepreneurs’ values of entrepreneurship, perception of entrepreneurial opportunities, practical management strategies, and ultimately their business performances.

Practical implications

This study provides significant policy implications for entrepreneurship related public policies on regional development, economic recovery, and neighborhood revitalization especially when race and ethnicity are concerned.

Originality/value

By identifying gaps of knowledge in ethnic entrepreneurship and incorporating a multidisciplinary literature, this paper extends the discussion of “contextual effects” from spatial dimensions, explicitly brings race and ethnicity to the spatial framework of entrepreneurship.

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