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

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  • Philipp Köllinger
  • Maria Minniti

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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Bibliographic 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
Date of revision:
Handle: RePEc:diw:diwwpp:dp574

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

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Citations

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Cited by:
  1. José Ernesto Amoros & Niels Bosma & Jonathan Levie, 2011. "Ten Years of Global Entrepreneurship Monitor: Accomplishments and Prospects," Global Entrepreneurship Monitor Working Paper Series, Global Entrepreneurship Research Association 1105, Global Entrepreneurship Research Association, revised Aug 2011.
  2. Chatterji, Aaron K & Chay, Kenneth Y & Fairlie, Robert W, 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," Santa Cruz Department of Economics, Working Paper Series qt479755b2, Department of Economics, UC Santa Cruz.
  3. 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.
  4. Magnus Lofstrom & Timothy Bates, 2013. "African Americans’ pursuit of self-employment," Small Business Economics, Springer, Springer, vol. 40(1), pages 73-86, January.
  5. Minniti, Maria & Lévesque, Moren, 2008. "Recent developments in the economics of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 603-612, November.
  6. Zhang, Ying & Duysters, Geert, 2010. "Entrepreneurship Development and the Role of Economic Transition in Entrepreneurial Activities in China," MERIT Working Papers 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  7. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, Springer, vol. 42(3), pages 445-465, March.
  8. Stephan Goetz & Anil Rupasingha, 2009. "Determinants of growth in non-farm proprietor densities in the US, 1990–2000," Small Business Economics, Springer, Springer, vol. 32(4), pages 425-438, April.
  9. Niels Bosma, 2012. "The Global Entrepreneurship Monitor (GEM) and its Impact on Entrepreneurship Research," Global Entrepreneurship Monitor Working Paper Series, Global Entrepreneurship Research Association 1201, Global Entrepreneurship Research Association, revised May 2012.
  10. Mediha Sahin & Peter Nijkamp & Roger Stough, 2011. "Impact of urban conditions on firm performance of migrant entrepreneurs: a comparative Dutch–US study," The Annals of Regional Science, Springer, Springer, vol. 46(3), pages 661-689, June.
  11. Robert Fairlie & Justin Marion, 2012. "Affirmative action programs and business ownership among minorities and women," Small Business Economics, Springer, Springer, vol. 39(2), pages 319-339, September.
  12. Taehyun Ahn, 2011. "Racial differences in self-employment exits," Small Business Economics, Springer, Springer, vol. 36(2), pages 169-186, February.
  13. 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.
  14. Martínez Mateo, Jesús & Mira Solves, Ignacio & Gómez Gras, José M.ª, 2013. "Influence of the economic cycle on the determinants of nascent entrepreneurial activity. An empirical analysis of the Spanish case," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 26, pages 19-45.
  15. Fairlie, Robert W. & Holleran, William, 2012. "Entrepreneurship training, risk aversion and other personality traits: Evidence from a random experiment," Journal of Economic Psychology, Elsevier, Elsevier, vol. 33(2), pages 366-378.
  16. Ilhan-Nas, Tulay & Sahin, Kader & Cilingir, Zuhal, 2011. "International ethnic entrepreneurship: Antecedents, outcomes and environmental context," International Business Review, Elsevier, Elsevier, vol. 20(6), pages 614-626.

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