Entrepreneurship is often touted as an escape route for ethnic minorities and immigrants who face employment barriers in the regular labour market. The present chapter first discusses theory and evidence on discrimination against minorities in the product, labour and credit markets, before identifying several positive factors that might encourage minorities to start their own ventures. Evidence on the sources of different entrepreneurial propensities and outcomes between minorities and majority workers is then presented. The chapter next explores the tendency for immigrants to become entrepreneurs, and reviews evidence on their performance outcomes.