IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v15y2025i7p262-d1695969.html

Policing Effects on Black Entrepreneurs’ Financial Performance: The Moderating Impact of Formal and Informal Institutions

Author

Listed:
  • Ikenna Uzuegbunam

    (Department of Management, School of Business, Howard University, Washington, DC 20059, USA)

Abstract

The purpose of this study is to provide a context-based empirical investigation of the racialized effect of policing on the financial performance of Black entrepreneurs. Given the historical role of race in policing in the United States, we expect that the degree of the policing of the Black population in a state will be negatively associated with the financial performance of Black entrepreneurs in the state. The sample for this study is drawn from quarterly police stop data across 14 states from the Stanford Open Policing Project , which is matched with state-level data from the Merchant Maverick ranking of best states for Black entrepreneurs. The sample size is 164 observations over 2013–2015 pertaining to police search rates of Blacks. Findings from the moderated, multivariate regression analysis reveals that the adverse effect of the policing of Black Americans on Black entrepreneurs’ financial performance can be relieved by state-level religiosity and the legalization of marijuana (or cannabis; a mind-altering drug produced from the hemp plant). This research demonstrates the important role of religious and legal institutional mechanisms in countering the economically destructive effects of policing on Black entrepreneurship in the United States.

Suggested Citation

  • Ikenna Uzuegbunam, 2025. "Policing Effects on Black Entrepreneurs’ Financial Performance: The Moderating Impact of Formal and Informal Institutions," Administrative Sciences, MDPI, vol. 15(7), pages 1-16, July.
    • Handle: RePEc:gam:jadmsc:v:15:y:2025:i:7:p:262-:d:1695969
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/15/7/262/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/15/7/262/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, December.
    2. Roland G. Fryer Jr., 2019. "An Empirical Analysis of Racial Differences in Police Use of Force," Journal of Political Economy, University of Chicago Press, vol. 127(3), pages 1210-1261.
    3. Uzuegbunam, Ikenna & Uzuegbunam, Nkiruka & Chuka-Obah, Chinwe, 2023. "State-level Religiosity and the Initial Adoption of mRNA COVID-19 Vaccines," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(2), September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    2. Grant H. Lewis, 2017. "Effects of federal socioeconomic contracting preferences," Small Business Economics, Springer, vol. 49(4), pages 763-783, December.
    3. LaVoice, Jessica & Vamossy, Domonkos F., 2024. "Racial disparities in debt collection," Journal of Banking & Finance, Elsevier, vol. 164(C).
    4. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    5. Wyatt, Tasha R. & Jain, Vinayak & Ma, TingLan, 2024. "The enemy within: The new war in medical education," Social Science & Medicine, Elsevier, vol. 355(C).
    6. Pekkala Kerr, Sari & Kerr, William, 2020. "Immigrant entrepreneurship in America: Evidence from the survey of business owners 2007 & 2012," Research Policy, Elsevier, vol. 49(3).
    7. Ozkan Eren & Masayuki Onda & Bulent Unel, 2016. "Effects of FDI on Entrepreneurial Activity: Evidence from Right-to-Work and Non-Right-to-Work States," Departmental Working Papers 2016-04, Department of Economics, Louisiana State University.
    8. Timothy Bates & William D. Bradford & Robert Seamans, 2018. "Minority entrepreneurship in twenty-first century America," Small Business Economics, Springer, vol. 50(3), pages 415-427, March.
    9. Pradhi Aggarwal & Alec Brandon & Ariel Goldszmidt & Justin Holz & John List & Ian Muir & Gregory Sun & Thomas Yu, 2022. "High-frequency location data shows that race affects the likelihood of being stopped and fined for speeding," Natural Field Experiments 00764, The Field Experiments Website.
    10. Robert W. Fairlie & Frank Fossen, 2021. "Did the $660 Billion Paycheck Protection Program and $220 Billion Economic Injury Disaster Loan Program Get Disbursed to Minority Communities in the Early Stages of COVID-19?," NBER Working Papers 28321, National Bureau of Economic Research, Inc.
    11. Robert W. Fairlie & Frank M. Fossen, 2020. "Defining Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation," Research in Labor Economics, in: Change at Home, in the Labor Market, and On the Job, volume 48, pages 253-289, Emerald Group Publishing Limited.
    12. Eugene B. McGregor, 2009. "Toward Excellence with Equity: An Emerging Vision for Closing the Achievement Gap , by Ronald F. Ferguson. Cambridge, MA: Harvard University Press, 2007, 375 pp., $60.66, paperback| Categorically Unequal: The American Stratification System , by Dougl," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(1), pages 185-192.
    13. Robert Fairlie & Aaron Chatterji, 2008. "High-Technology Entrepreneurship in Silicon Valley Opportunities and Opportunity Costs," Working Papers 08-04, NET Institute.
    14. Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
    15. Robert W. Fairlie & Javier Miranda, 2017. "Taking the Leap: The Determinants of Entrepreneurs Hiring Their First Employee," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 3-34, February.
    16. Robert W. Fairlie & Aaron K. Chatterji, 2013. "High‐Technology Entrepreneurship in Silicon Valley," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 365-389, June.
    17. Robert W. Fairlie, 2013. "Entrepreneurship, Economic Conditions, and the Great Recession," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 207-231, June.
    18. Srikant Devaraj & Pankaj C Patel, 2017. "Health insurance and employee productivity: Findings from the 2007 Survey of Business Owners," Economics Bulletin, AccessEcon, vol. 37(2), pages 1351-1364.
    19. R. Varisa Patraporn, 2015. "Complex transactions: Community development financial institutions lending to ethnic entrepreneurs in Los Angeles," Community Development, Taylor & Francis Journals, vol. 46(5), pages 479-498, December.
    20. Anthony Howell, 2019. "Ethnic entrepreneurship, initial financing, and business performance in China," Small Business Economics, Springer, vol. 52(3), pages 697-712, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:15:y:2025:i:7:p:262-:d:1695969. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.