Start-Up Motivations and Growth Intentions of Minority Nascent Entrepreneurs

23 Pages Posted: 29 Mar 2010

See all articles by Linda F. Edelman

Linda F. Edelman

Bentley University - Department of Management

Candida G. Brush

affiliation not provided to SSRN

Tatiana S. Manolova

Bentley University

Patricia G. Greene

Babson College

Abstract

Firm growth is widely considered to be a measure of success for entrepreneurial businesses. Data indicate that there are systematic differences between minority and nonminority-owned firms with respect to growth. Black entrepreneurs are 50 percent more likely to engage in start-up activities than white entrepreneurs, however, black-owned firms are smaller and less profitable than their white-owned counterparts. Following the effort–performance–outcome–logic of expectancy theory and using data from the Panel Study of Entrepreneurial Dynamics (PSED), our paper investigates the differences between black and white entrepreneurs' motivations to start and intentions to grow a new venture. Findings indicate that there are significant differences in motivations between black and white entrepreneurs both in starting and in their intentions to grow the new venture. Implications for future research are discussed.

Suggested Citation

Edelman, Linda F. and Brush, Candida G. and Manolova, Tatiana S. and Greene, Patricia G., Start-Up Motivations and Growth Intentions of Minority Nascent Entrepreneurs. Journal of Small Business Management, Vol. 48, Issue 2, pp. 174-196, January 2010, Available at SSRN: https://ssrn.com/abstract=1578530 or http://dx.doi.org/10.1111/j.1540-627X.2010.00291.x

Linda F. Edelman (Contact Author)

Bentley University - Department of Management ( email )

175 Forest Street
Waltham, MA 02145
United States

Candida G. Brush

affiliation not provided to SSRN

Tatiana S. Manolova

Bentley University ( email )

175 Forest Street
Waltham, MA 02145
United States

Patricia G. Greene

Babson College ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States

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