How Does Race and Ethnicity Affect Persistence in Immature Ventures?

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© 2016 International Council for Small Business.Does race/ethnicity affect persistence in an immature venture? Using data from the Panel Study of Entrepreneurial Dynamics II, we examine how race/ethnicity, access to supplier credit, and personal financial investment affect three entrepreneurial outcomes: continued engagement, new firm creation, and disengagement. We find that compared with whites, blacks were less likely to receive supplier credit and invest more of their own capital, whereas Hispanics did not significantly differ from whites. Blacks were more likely to persist and remain engaged in an immature venture if they did not achieve success after two years in operation, whereas Hispanics were more likely to disengage.






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Freeland, RE, and LA Keister (2016). How Does Race and Ethnicity Affect Persistence in Immature Ventures?. Journal of Small Business Management, 54(1). pp. 210–228. 10.1111/jsbm.12138 Retrieved from

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Lisa A. Keister

Professor of Sociology

Lisa A. Keister is professor of sociology and public policy at Duke University and an affiliate of the Duke Network Analysis Center and the Duke Population Research Initiative. Her current research focuses on organization strategy, elite households, the processes that explain extremes in wealth and income inequality, and on group differences in the intergenerational transfer of assets. She has been focusing on the causes and consequences of net worth poverty recently with colleagues from the Sanford school and is currently completing two books: one on America’s wealthiest families, the one percent, and one on net worth poverty.

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