“…The coefficient on the control variable for racial diversity is negative and significant. Racial boundaries carry with them the multiple schisms of interests, stereotypes, and nativism (Bean and Stevens, 2003;Christerson, Emerson, and Edwards, 2005), underlie political and economic competition (Soule, 1992), create variation in social services demanded (Galaskiewicz, Mayorova, and Duckles, 2013), and prompt differences over what collective goods and risks the community should care about (Douglas, 1992;Rao, Yue, and Ingram, 2010). Consistent with this literature, the control model indicates that local social entrepreneurship might be harder when there is high racial diversity, but the underlying forces are various and need to be understood in the context of both social and economic forces.…”