This article presents an overarching review of the evidence regarding enterprise diversity. It discusses the context of ethnic minorities and women in enterprise and summarises research evidence relating to their relative access to finance, market selection and management skills. Policy within the field of diversity and enterprise is characterised by a number of tensions and unresolved questions including the presence of perceived or actual discrimination, the quantity and quality of ethnic minority and women-led businesses, potential market failure in the support provided to diverse enterprises and the substantive uniqueness of ethnic minority and women-led enterprises. Particular implications for policy and practice as well as directions for future research are discussed.

This article assesses recent developments in the research and practice of migrant entrepreneurship by examining the powerful contribution that the perspective of ‘mixed embeddedness’ has provided to this field. We identify key themes emerging from mixed embeddedness, particularly in relation to the role of the institutional and market contexts, and highlight areas that could strengthen the perspective, such as (1) the role of regulation, (2) the incorporation of racist exclusion and (3) gendered structures of migration and labour market processes, (4) market ghettoisation and (5) greater sensitivity to historical context. We also consider the extent to which growing interest among practitioners in supporting migrant enterprise has been influenced by developments in the academic domain.

What form is small business activity taking among new migrants in the UK? This question is addressed by examining the case of Somalis in the English city of Leicester.We apply a novel synthesis of the Nee and Sanders' (2001) `forms of capital' model with the `mixed embeddedness' approach (Rath, 2000) to enterprises established by newly arrived immigrant communities, combining agency and structure perspectives. Data are drawn from business-owners (and workers) themselves, rather than community representatives. Face-to-face in-depth interviews were held with 25 business owners and 25 employees/`helpers', supplemented by 3 focus group encounters with different segments of the Somali business population.The findings indicate that a reliance solely on social capital explanations is not sufficient. An adequate understanding of business dynamics requires an appreciation of how Somalis mobilize different forms of capital within a given political, social and economic context.

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