Entrepreneurship, ethnicity and local contexts: Hispanic entrepreneurs in three U.S. southern metropolitan areas

Abstract

Previous research suggests that entrepreneurship can provide ethnic minorities a springboard for economic advancement and social integration. However, self-employment rates vary significantly among ethnic groups, between men and women, and in different places. The prevailing literature suggests that personal characteristics, including human capital attributes, ethnic networking, institutional regulations, societal structures and discrimination, all contribute to the differential ethnic entrepreneurship rates. However, very few recent studies have analyzed how different urban socio-economic contexts influence this process. Using the 2000 Public Usable Microdata Samples (PUMS), this study examines how Hispanic entrepreneurs perform in three different metropolitan areas in the US South. The results show that the ethnic diversity, history of immigration, and the economic structure in each local area have provided different opportunities and challenges for Hispanics to start up and maintain their own businesses. This study suggests that the process of economic incorporation of ethnic minorities and immigrants depends significantly on the institutional capacity and social, cultural and political resources of local communities.

Immigrants in the Labour Market: Transnationalism and Segmentation

“…Ley 2006; Marger 2006; Walton‐Roberts and Pratt 2005; Wong 2004), the USA (e.g. Kalnins and Chung 2006; Liu and Lin 2009; Shinnar and Young 2008; Tienda and Raijman 2004; Wang and Li 2007), France (e.g. Mung and Dinh 2007), Sweden (e.g.…”

Immigration and Ethnic Entrepreneurship: A Comparative Study in the United States

“…Indeed, Hispanics in these established gateways have much higher self‐employment rates than their national average (Figure 1). And, according to Wang and Li (2007), the positive entrepreneurial environment can be “pan‐ethnicity” as well: not only traditional entrepreneurial groups such as Cuban, but also Mexican, and not only Hispanic, but also Asian, can be more likely to start their own businesses in a very entrepreneurial city such as Miami than in new immigration destinations such as Charlotte, North Carolina.…”

The Exceptional One Percent: U.S. Farmworker and Business Owner

“…National studies suggest that Latina entrepreneurs earn more than similar non-Latina (Anglo) entrepreneurs, but still earn less than similar Latinas who receive wages and/or salaries (Lofstrom & Bates, 2009). Wang and Li (2007) argue that English language ability is a determinant of self-employment for Latinos, and Borjas and Katz (2007) suggest that Latinos improve their earnings over time.…”