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

Philipp Köllinger and Maria Minniti
Authors registered in the RePEc Author Service: Philipp Koellinger

No 574, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

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.

Keywords: Entrepreneurship; Black Entrepreneurship; Minority Entrepreneurship; Nascent Entrepreneurship. (search for similar items in EconPapers)
JEL-codes: D1 J15 J23 M13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ent and nep-tid
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed

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