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Entrepreneur Human Capital Endowments and Minority Business Viability

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  • Timothy Bates

Abstract

This study analyzes the relationship between entrepreneur human capital endowments and minority enterprise profitability. The better educated subset of entrepreneurs earns high profits relative to their minority business counterparts, and the lines of business in which they are concentrating lie outside the retail and personal service areas that have traditionally dominated minority business activity. In addition to fostering industrial diversity by creating and expanding firms in heavy construction, manufacturing, and skill-intensive services, the better educated entrepreneur group is found to be utilizing effectively both its financial and human capital inputs.

Suggested Citation

  • Timothy Bates, 1985. "Entrepreneur Human Capital Endowments and Minority Business Viability," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 540-554.
    • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:4:p:540-554
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