A Research Companion
Edited by Mustafa F. Özbilgin and Ayala Malach-Pines
Chapter 19: The Career Reasons of Minority Nascent Entrepreneurs
Nancy M. Carter, William B. Gartner, Kelly G. Shaver and Patricia G. Greene The creation of new independent businesses accounts for one-fourth to almost one-third of the variation in economic growth in nearly all industrialized countries (Davidsson et al., 1994; Reynolds et al., 2000). The entrepreneurs responsible for this impact have beneﬁted not only ﬁnancially, but also socially and psychologically from their eﬀorts. Indeed, new business ownership has presented an important pathway for individuals to achieve economic and social mobility, particularly among minorities (Butler, 1991; Feldman et al., 1991; US Small Business Administration, 1999; Waldinger et al., 1990). To help minority entrepreneurs follow this pathway, the federal government’s regulations on small disadvantaged business contain speciﬁc minority set-asides that aﬀect contracting, credit access, management and technical assistance programs (http://www.sba.gov/sdb/). Even on the local level, economic revitalization of inner cities frequently involves the creation of incubators that oﬀer minority clients subsidized rates for space and essential business services. Despite such eﬀorts, the potentially high cost of business failure gives rise to questions about the characteristics of those who start new ventures and why they pursue this activity (Shane and Venkataraman, 2000). It is reasonable to argue that a more complete understanding of the motivations of minority entrepreneurs might improve the programs designed to raise the odds of success. Dyer (1994) suggested that individuals who start new businesses (‘nascent entrepreneurs’) make an ‘entrepreneurial career’ choice; the reasons they give for their choice may diﬀer from...
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