Not for Lack of Trying: American Entrepreneurship in Black and White
AbstractUsing a sample obtained from a survey conducted in the United States during summer 2002, we study the variables related to observed differences in the rate of entrepreneurial involvement between black and white Americans. We find strong evidence that differences in subjective and often biased perceptions are highly associated with entrepreneurial propensity across these two racial groups. In addition, we find that black Americans tend to exhibit more optimistic perceptions of their business environment than other racial groups and are more likely than others to attempt starting a business. In fact, our results show that blacks are almost twice as likely as whites to try starting a business. Thus, our results suggest that the under representation of black Americans among established entrepreneurs is not due to lack of trying but may instead be due to stronger barriers to entry and higher failure rates. Copyright Springer 2006
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Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 27 (2006)
Issue (Month): 1 (August)
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Web page: http://www.springerlink.com/link.asp?id=100338
entrepreneurship; black entrepreneurship; minority entrepreneurship; nascent entrepreneurship; D01; J15; J23; M13;
Other versions of this item:
- Philipp Köllinger & Maria Minniti, 2006. "Not for Lack of Trying: American Entrepreneurship in Black and White," Discussion Papers of DIW Berlin 574, DIW Berlin, German Institute for Economic Research.
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
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