Challenges and opportunities for minority owned trucking firms: a case study

Despite the steady growth and the introduction of 'set‐aside' programmes/affirmative actions, minority owned firms often faced stiff business challenges. These challenges include a lack of business networking opportunities, limited financial resources, and prejudices against minority management styles. Some of these challenges led many minority‐owned firms to focus on their own niches in the service sector including the trucking industry. In particular, the trucking industry characterised by a thin profit margin and cut‐throat competition poses additional challenges for minority owned trucking firms. To help minority owned trucking firms remain competitive in the trucking industry, this paper investigates why they lag behind their white‐owned counterparts in sales, profits, employments, and market shares, while assessing the impacts of community supports, affirmative actions, and supplier diversity programmes on their business successes. In addition, this paper identifies best‐case practices performed by successful minority owned trucking firms such as Trio Trucking, Rush Trucking, Three Star Trucking, Houston‐Johnson Inc., and Logos Logistics. Furthermore, this paper proposes a viable business strategy which will create 'win‐win' situations for both minority owned trucking firms and their clients (e.g., shippers) in times of economic hardships.