Why Are Black‐Owned Businesses Less Successful than White‐Owned Businesses? The Role of Families, Inheritances, and Business Human Capital

Fairlie, Robert W.; Robb, Alicia

doi:10.1086/510763

Cited by 298 publications

(231 citation statements)

References 48 publications

Supporting

Mentioning

223

Contrasting

Unclassified

Order By: Relevance

“…Previous research has suggested an important role of parental income and education (Lentz and Laband, 1990;Blanchflower and Oswald, 1998;Fairlie and Robb, 2007a); finding a large role for these variables would be consistent with the existence of capital constraints (Holtz-Eakin et al, 1994;Blanchflower and Oswald, 1998 of general or specific business human or social capital, but also through role-modeling (Dunn and Holtz-Eakin, 2000;Fairlie and Robb, 2007b;Sørensen, 2007;Colombier and Masclet, 2008;Parker, 2009;Hoffmann et al, 2015;Lindquist et al, 2015).…”

Section: Parental Characteristicsmentioning

confidence: 67%

On the Origins of Entrepreneurship: Evidence from Sibling Correlations

et al. 2017

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Promoting entrepreneurship has become an increasingly important part of the policy agenda in many countries. The success of such policies, however, rests in part on the assumption that entrepreneurship outcomes are not fully determined at a young age by factors that are unrelated to current policy. We test this assumption and assess the importance of family background and neighborhood effects as determinants of entrepreneurship, by estimating sibling correlations in entrepreneurship. We find that between 20 and 50 percent of the variance in different entrepreneurial outcomes is explained by factors that siblings share (i.e., family background and neighborhood effects). The average is 28 percent. Hence, entrepreneurship is far less than fully determined at a young age. Our estimates increase only a little when allowing for differential treatment within families by gender and birth order. We then investigate a comprehensive set of mechanisms that explain sibling similarities. Parental entrepreneurship plays a large role in explaining sibling similarities, as do shared genes. We show that neighborhood effects matter, but are rather small, particularly when compared with the overall importance of family factors. Sibling peer effects, and parental income and education matter even less. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: D13, J62, L26

show abstract

Section: Parental Characteristicsmentioning

confidence: 67%

On the Origins of Entrepreneurship: Evidence from Sibling Correlations

et al. 2017

View full text Add to dashboard Cite

show abstract

“…The success of a micro-enterprise is dependent on the decisions and actions of the entrepreneur with respect to products, production processes, human resources, marketing, and finance. The growth of micro-enterprises can be measured from three perspectives based on employment growth (Mead & Liedholm 1998), revenue growth, and profit growth (McPherson, 1996;Fairlie & Robb, 2009). …”

Section: Micro-enterprise Performancementioning

confidence: 99%

Examining the effectiveness of micro-enterprise development programs in Malaysia

Zainol

Mamun

Hassan

et al. 2017

Journal of International Studies

View full text Add to dashboard Cite

Abstract. Previous studies on socioeconomic development have examined the effect of development initiatives (i.e., access to finance and training) on several socioeconomic indicators (i.e., income, empowerment, asset, quality of life, employment). These studies have focused mostly on the outcomes of specific types of programs offered by specific development organizations. This study however focuses on informal women micro-entrepreneurs' participation in various development programs available to them and their influence on entrepreneurial competencies, human capital development, competitive advantages, economic vulnerability, supportive environment, and performance of micro-enterprises. This cross-sectional study adopted the purposive random sampling method and collected data from 384 informal women entrepreneurs from the local markets in different districts of Kelantan, Malaysia. The findings show that the development program participants have relatively higher levels of entrepreneurial competencies, human capital development, and higher levels of enterprise performance compared to non-participants. It is also noted that the level of economic vulnerability is relatively low among participants compared to non-participants. However, these findings contradict most of the earlier studies 293that show a significant positive impact of micro-credit on socio-economic wellbeing, as the difference in entrepreneurial competencies, human capital development, economic vulnerability, and performance of micro-enterprises among participants and non-participants in this study is not statistically significant. However, findings reported significantly higher levels of competitive advantages, and better supportive environment among the participants compared to the non-participants. Development organizations should therefore focus on expanding their outreach to spread the positive effects of their development programs towards uplifting the economic condition of low and middle-income households in Malaysia.

show abstract

“…As their time in the U.S., work experience, and English proficiency increase, immigrants' earnings and occupational attainment tend to increase as well (Boyd 1993;Collins 1983). Research on immigrant employment has largely focused on the private sector, especially self-employment in ethnic economies (e.g., Bates 1997;Fairlie and Robb 2007;Logan, Alba, and Stults 2003;Portes and Zhou 1996) and concentration in ethnic niche employment (Liu 2011;Waldinger 1994;Wright and Ellis 2000). Earnings of new immigrants improved starting in the 1990s, partly due to immigration policy geared toward high-skilled workers (Borjas and Friedberg 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

The Representation of Immigrants in Federal, State, and Local Government Work Forces

Lewis

Liu

Edwards

2013

Int. Migration & Integration

View full text Add to dashboard Cite

show abstract

Why Are Black‐Owned Businesses Less Successful than White‐Owned Businesses? The Role of Families, Inheritances, and Business Human Capital

Abstract: Four decades ago, Nathan Glazer and Daniel Patrick Moynihan made the argument that the black family "was not strong enough to create those extended clans that elsewhere were most helpful for businessmen and professionals

Cited by 298 publications

References 48 publications

On the Origins of Entrepreneurship: Evidence from Sibling Correlations

On the Origins of Entrepreneurship: Evidence from Sibling Correlations

Examining the effectiveness of micro-enterprise development programs in Malaysia

The Representation of Immigrants in Federal, State, and Local Government Work Forces

Contact Info

Product

Resources

About