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Differences Between Latino-Owned Businesses and White-, Black-, or Asian-Owned Businesses: Evidence From Census Microdata

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  • Craig Wesley Carpenter
  • Scott Loveridge

Abstract

Growth of the U.S. Latino population translates into policy interest of how business owner, firm, and local characteristics may be different for Latinos. To explore ethnicity and business ownership, this study merges restricted-access data from 11 million businesses. Multinomial logistic regression estimates how characteristics associate with the probability of the business being Latino-owned relative to White-owned, Black-owned, or Asian-owned. There are differences in the source and amount of start-up funds, gender, and the sector of the business. The differences depend on the group to which Latinos are being compared; for example, manufacturing firms are less likely to be Latino owned than White owned, but more likely to be Latino owned than Black owned. An exception is college education and rurality; Latino owners are consistently less likely to be college educated and more likely to locate in rural areas than the other ethnic minorities. The results should be helpful to groups attempting to improve Latino business outcomes.

Suggested Citation

  • Craig Wesley Carpenter & Scott Loveridge, 2018. "Differences Between Latino-Owned Businesses and White-, Black-, or Asian-Owned Businesses: Evidence From Census Microdata," Economic Development Quarterly, , vol. 32(3), pages 225-241, August.
    • Handle: RePEc:sae:ecdequ:v:32:y:2018:i:3:p:225-241
    DOI: 10.1177/0891242418785466
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    2. Iryna Demko & Ana Claudia Sant’Anna, 2023. "Impact of Race, Ethnicity, and Gender on the SBA Paycheck Protection Program (PPP) Loan Amounts," Economic Development Quarterly, , vol. 37(3), pages 211-229, August.
    3. Carpenter, Craig Wesley & Loveridge, Scott, 2021. "Can Latinx Entrepreneurship Help Rural America?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 36(4), October.
    4. Anders Van Sandt & Craig Wesley Carpenter & Charles M. Tolbert, 2023. "Decomposing local bank impacts with demand thresholds," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 333-352, April.

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