Abstract
This paper explores how the concept of embeddedness can deepen our understanding of the mechanisms that foster entrepreneurial activity among ethnic minority business. Focussing on guanxi, a culturally rooted relational concept, we investigate the entrepreneurial processes of ethnic Chinese entrepreneurs in Indonesia. Drawing on qualitative research, we identify multiple forms of dynamic embeddedness – cultural, relational, and policy-driven – that are critical at different stages of the entrepreneurial journey. The findings highlight the importance of creating inclusive entrepreneurial ecosystem that acknowledges the diversity of entrepreneurial actors and the historical barriers they face. Differences in management practices, the difficulties of knowledge transfer, and the multiplicity of ethnic make entrepreneurship particularly nuanced. By uncovering how these forms of embeddedness enhance resilience and adaptability, the study demonstrates that guanxi-based embeddedness enhance plays an important role in the survival and success of ethnic Chinese enterprises.