Why Aren’t There More Minority Entrepreneurs?

41 Pages Posted: 21 Feb 2023 Last revised: 28 Apr 2023

See all articles by Victor Manuel Bennett

Victor Manuel Bennett

University of Utah

David T. Robinson

Fuqua School of Business, Duke University; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Date Written: February 16, 2023


We examine racial and gender differences in the intention to start a business and steps taken along the path to starting a business. Black and Hispanic potential entrepreneurs are more likely to consider starting businesses; however, conditional on doing so, they are much less likely to launch the business. Black, unlike Hispanic or female respondents, are less likely to discuss ideas with friends or peers with relevant expertise. Racial differences in new business formation vanish when controlling for these (presumably low-cost) network channels. These results have important implications for policies aimed at boosting entrepreneurship in under-represented communities.

Keywords: entrepreneurship, minority entrepreneurship, race, gender

JEL Classification: J15, J16, M13, L26

Suggested Citation

Bennett, Victor Manuel and Robinson, David T., Why Aren’t There More Minority Entrepreneurs? (February 16, 2023). Available at SSRN: https://ssrn.com/abstract=4360750 or http://dx.doi.org/10.2139/ssrn.4360750

Victor Manuel Bennett (Contact Author)

University of Utah ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

HOME PAGE: http://vmbennett.com

David T. Robinson

Fuqua School of Business, Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0120
United States
919-660-8023 (Phone)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
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Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
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