Identification and Attenuation of Barriers to Entrepreneurship

Abstract

Results are reported from a Latino immigrant entrepreneur needs assessment survey. The research project was conducted to identify barriers to business formation and continuation within the target population. A total of 171 surveys representing more than 200 businesses from 39 communities in 21 counties in western Arkansas were collected. Nearly 42% of respondents cited start-up capital as their biggest barrier with another 15% naming it as the second biggest barrier. Understanding government regulations and tax information rated as the second biggest barrier that Latinos encountered. This barrier is more pronounced in rural areas than in urban areas. Other top concerns include advertising, location, and obtaining licenses and permits. A closer examination of barriers finds nuanced differences between rural and urban entrepreneurs. Outreach programs and materials developed in response to research findings are presented.

Entrepreneurs of color in Wisconsin: Bridging the gap in resources to mobilize potential

“…In this study, almost all participants reported that information about business planning, marketing strategies, licensing and tax regulations, and financing was of most concern during their startup phase. This information deficit is consistent with other studies on Latinx immigrant business owners (Moon et al, 2014;Zarrugh, 2007).…”

“…A modified interview instrument developed by Moon et al (2014) was used to collect information from BIPOC business owners See Appendix 1. The instrument was written in English, translated into Spanish, and interpreted in Mandarin to Chinese business owners.…”

“…a wide range of challenges such as barriers in accessing information, technical supports in terms of business planning, and financial resources necessary for business startup and expansion (Bonds, 2007;Erdmann, 2016;Freeland & Keister, 2016;Kopkin, 2017). While the growing importance of BIPOC owned businesses and their impact on the economy is well documented at the federal level (Fairlie & Robb, 2010;Obuko & Planting, 2015;Wang, 2015), their impact at the state and local levels is not adequately understood partly due to lack of data (García-Pabón & Klima, 2017;Moon et al, 2014). The implication is that community development practitioners and policymakers who could capitalize on the rapid growth of BIPOC populations and their affinity for entrepreneurial ventures lack information to guide their decisions (Anderson & Hurwitz, 2016;Moon et al, 2014).…”

“…While the growing importance of BIPOC owned businesses and their impact on the economy is well documented at the federal level (Fairlie & Robb, 2010;Obuko & Planting, 2015;Wang, 2015), their impact at the state and local levels is not adequately understood partly due to lack of data (García-Pabón & Klima, 2017;Moon et al, 2014). The implication is that community development practitioners and policymakers who could capitalize on the rapid growth of BIPOC populations and their affinity for entrepreneurial ventures lack information to guide their decisions (Anderson & Hurwitz, 2016;Moon et al, 2014). Further complicating the situation, research on BIPOC owned businesses has traditionally concentrated in metropolitan areas (Bonds, 2007;Fortunato & Alter, 2016;Tienda & Raijman, 2004) and tended to focus on the role of startup financial resources and human capital in terms of an individual's knowledge and creative capability without considering other capitals or restricting factors (Bates & Robb, 2014;Zarrugh, 2007).…”

A qualitative study on motivators and barriers affecting entrepreneurship among Latinas

“…Female entrepreneurs with more educational attainment do not receive as great of a return, in terms of financial success, as do their male counterparts (Smith-Hunter, 2004). Latina entrepreneurs have smaller businesses compared to male entrepreneurs and face greater obstacles in obtaining financial capital (Moon and Farmer, 2014; Moon et al , 2014; Smith-Hunter, 2004). Furthermore, a recent literature review (Panda, 2018) indicated key constraints faced by female entrepreneurs in developing countries that included gender discrimination; work-family conflict; financial constraints; lack of infrastructural support; unfavorable business, economic and political environments; lack of entrepreneurship training, education; and personality-based constraints.…”