Nascent Entrepreneurship and Race: Evidence from the GATE Experiment

Marios Michaelides ()

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: We examine white-black disparities in the labor market outcomes of nascent entrepreneurs using data from Project GATE, an experimental-design entrepreneurship training program. Findings show that white nascent entrepreneurs who applied for the program were more successful than their black peers in starting a business, becoming self-employed, and achieving high earnings. These disparities were largely because whites were more likely to have access to start-up financing and – to a lesser extent – because whites had more human capital and business background. The program was found effective in helping both white and black nascent entrepreneurs to start a business and become self-employed, but there is limited evidence that it reduced white-black entrepreneurship gaps.

Keywords: Entrepreneurship; small business; minority entrepreneurship; entrepreneurship entry; human capital; business background; start-up financing; entrepreneurship training (search for similar items in EconPapers)
JEL-codes: J15 J24 L26 M13 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2017-02
New Economics Papers: this item is included in nep-ent, nep-lab and nep-sbm
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ucy:cypeua:02-2017

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