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Not for Lack of Trying: American Entrepreneurship in Black and White

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Author Info
Philipp Köllinger
Maria Minniti

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Abstract

Using 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.

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Publisher Info
Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 574.

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Length: 33 p.
Date of creation: 2006
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Publication status: Published in: Small Business Economics 27 (2006), Nr. 1, 59-78
Handle: RePEc:diw:diwwpp:dp574

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Keywords: Entrepreneurship; Black Entrepreneurship; Minority Entrepreneurship; Nascent Entrepreneurship.;

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Find related papers by JEL classification:
D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nijkamp, P. & Stough, R. & Sahin, M., 2009. "Impact of social and human capital on business performance of migrant entrepreneurs - a comparative dutch-us study," Serie Research Memoranda 0017, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics. [Downloadable!]
  2. Glenn Yago & Betsy Zeidman & Alethea Abuyuan, 2007. "A history of emerging domestic markets," Community Development Investment Review, Federal Reserve Bank of San Francisco, pages 1-22. [Downloadable!]
  3. Stephan Goetz & Anil Rupasingha, 2009. "Determinants of growth in non-farm proprietor densities in the US, 1990–2000," Small Business Economics, Springer, vol. 32(4), pages 425-438, April. [Downloadable!] (restricted)
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