Women Entrepreneurship Across Racial Lines: Current Status, Critical Issues, and Future Implications

Abstract

This article begins with a look at women employment over the years and the historical place of women entrepreneurship in today’s economy. It continues by analyzing data statistically on women entrepreneurs in the United States across racial lines, with a particular focus on Hispanic women entrepreneurs. The article ends by examining the critical issues that are important for women entrepreneurs in today’s environment as well as the future implications of these issues.

Advancing theory development in venture creation: signposts for understanding gender

“…While both men and women are motivated by opportunity and necessity, and these motivations vary widely by level of country development (Kelley et al, 2011), there is evidence that, on balance, women are more often motivated by economic necessity in the USA (Buttner, 1993;Hisrich and Brush, 1983;Hughes, 2005;Orhan and Scott, 2001). There is growing evidence that women entrepreneurs in transition and less-developed economies, as well as ethnic minority women entrepreneurs, are more likely to be motivated by economic necessity (Welter et al, 2006;Smith-Hunter, 2004).…”

Black fashion designers matter: A qualitative study exploring the experiences of Black female fashion design entrepreneurs

“…Other studies included Black women as research subjects, but only as a segment of female entrepreneurs from underrepresented racial and ethnic groups that were lumped into one category (Smith-Hunter & Boyd, 2004). Comparing the experiences of Black female business owners to that of Black male business owners (Robb, 2002), to White female business owners (Dolinsky, Caputo & Pasumarty, 1994;Inman, 2000) or to female business owners of other ethnic groups (Smith-Hunter, 2004) are the most widely used approaches to research concerning Black women in entrepreneurship. Studies including Black female entrepreneurs have focused on their individual characteristics (i.e., education level, age, marital status etc.)…”

“…This glass-ceiling barrier often persuades women to leave their corporate careers to start their own ventures because of an inability to obtain proper recognition by their employers and reach senior level positions (Orhan & Scott, 2001). The negative experiences women are likely to encounter in corporate life including systematic exclusion, lack of opportunity for advancement and the less than proportionate compensation they receive for performing the same functions and duties as their male counterparts, (Heilman & Chen, 2003;Smith-Hunter, 2004) push them toward entrepreneurship.…”

“…Although there is a significant overall general appeal of entrepreneurship, it is especially appealing to women and people of color who are more likely to encounter negative experiences in corporate life that "push" them toward self-employment (Heilman & Chen, 2003). Among these two groups, the primary reasons for entering entrepreneurship include systematic exclusion, lack of opportunity for advancement and the less than proportionate compensation they receive for performing the same functions and duties when compared to their White male counterparts (Smith-Hunter, 2004). Heilman and Chen (2003) believed that women and people of color viewed entrepreneurship as a solution to problems that they encountered in the traditional workplace that appeared to them to be fixed and unlikely to change.…”

“…Several studies have shown that Black women experience entrepreneurship differently than their male counterparts and women from other racial groups (Dolinsky et. al., 1994;Inman, 2000;Smith-Hunter, 2004). "The dual influence of race and gender means that African American women generally trail Black men, White women and White men in earnings, power and prestige in the work place" (Harvey, 2005, p. 790).…”