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Opportunity Recognition Differences Between Black And White Nascent Entrepreneurs: A Test Of Bhave'S Model

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Author Info

  • ROBERT P. SINGH

    ()
    (Morgan State University, Earl G. Graves School of Business, 1700 E. Cold Spring Lane, Baltimore, MD 21251, USA)

  • EDWIN L. KNOX

    (Morgan State University, Earl G. Graves School of Business, 1700 E. Cold Spring Lane, Baltimore, MD 21251, USA)

  • MICAH E. S. CRUMP

    (Morgan State University, Earl G. Graves School of Business, 1700 E. Cold Spring Lane, Baltimore, MD 21251, USA)

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    Abstract

    Examining the opportunity recognition processes of black and white entrepreneurs may help improve the lagging rate of black entrepreneurship. Based on the framework provided by Bhave's (1994) model of new venture creation, and using data collected through the Panel Study of Entrepreneurial Dynamics, we found significant differences between the percentage of black and white nascent entrepreneurs who recognized externally-stimulated versus internally-stimulated opportunities and their projected firm revenues. As predicted, black nascent entrepreneurs were more likely to pursue externally-stimulated opportunities with significantly lower expected revenues than their white counterparts. Academic and practical implications are discussed and future research directions are offered.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.

    Volume (Year): 13 (2008)
    Issue (Month): 01 ()
    Pages: 59-75

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    Handle: RePEc:wsi:jdexxx:v:13:y:2008:i:01:p:59-75

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    Related research

    Keywords: Black entrepreneurship; African-American entrepreneurship; opportunity recognition; PSED;

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    Cited by:
    1. Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.

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