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Developing Self-Employment Among African Americans: The Impact of Household Social Resources on African American Entrepreneurship

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  • Danielle Taana Smith

    (Rochester Institute of Technology)

Abstract

Entrepreneurship has historically been a vital contributor to the dynamism of American economic activity and has functioned as an important institution for marginalized races and communities. Logistic regression models based on data from the 1993 through 2000 Current Population Surveys from the U.S. Bureau of the Census are used to investigate differences in the probability of self-employment for African Americans and Whites. The investigation of racial differences in entrepreneurship offers both a fundamental view of economic development and of the salience of race in contemporary American economic activity. The results of this study show that household resources have both expected and unexpected effects on entrepreneurship. For example, as expected, being married and having other sources of household income positively affect the likelihood of entrepreneurship for both African Americans and Whites. Unexpectedly, having other working-age adults in the household reduces the likelihood of entrepreneurship for both groups.

Suggested Citation

  • Danielle Taana Smith, 2005. "Developing Self-Employment Among African Americans: The Impact of Household Social Resources on African American Entrepreneurship," Economic Development Quarterly, , vol. 19(4), pages 346-355, November.
    • Handle: RePEc:sae:ecdequ:v:19:y:2005:i:4:p:346-355
    DOI: 10.1177/0891242405279693
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    References listed on IDEAS

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    1. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    2. George J. Borjas, 1986. "The Self-Employment Experience of Immigrants," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 485-506.
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    Cited by:

    1. Fairchild, Gregory B., 2010. "Intergenerational ethnic enclave influences on the likelihood of being self-employed," Journal of Business Venturing, Elsevier, vol. 25(3), pages 290-304, May.

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