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How Does Race and Ethnicity Affect Persistence in Immature Ventures?

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  • Robert E. Freeland
  • Lisa A. Keister

Abstract

Does race/ethnicity affect persistence in an immature venture? Using data from the anel tudy of ntrepreneurial ynamics , we examine how race/ethnicity, access to supplier credit, and personal financial investment affect three entrepreneurial outcomes: continued engagement, new firm creation, and disengagement. We find that compared with whites, blacks were less likely to receive supplier credit and invest more of their own capital, whereas Hispanics did not significantly differ from whites. Blacks were more likely to persist and remain engaged in an immature venture if they did not achieve success after two years in operation, whereas Hispanics were more likely to disengage.

Suggested Citation

  • Robert E. Freeland & Lisa A. Keister, 2016. "How Does Race and Ethnicity Affect Persistence in Immature Ventures?," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(1), pages 210-228, January.
    • Handle: RePEc:taf:ujbmxx:v:54:y:2016:i:1:p:210-228
    DOI: 10.1111/jsbm.12138
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    Cited by:

    1. Rosanna Garcia & Daniel W. Baack, 2023. "The Invisible Racialized Minority Entrepreneur: Using White Solipsism to Explain the White Space," Journal of Business Ethics, Springer, vol. 188(3), pages 397-418, December.
    2. Jin, Xianzhe & Li, Jingnan & Gao, Jijun, 2022. "Joint effect of linguistic style and ethnicity on entrepreneurial fundraising: Evidence from equity crowdfunding," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).

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