Black Entrepreneurship, Could It Be Resources, Resources, Resources?

“…immigrants from other countries, particularly those from the higher echelons of their respective societies, are entering the United States and hitting the ground running with resources already in hand and a support system to boost.”

By Matt Johnson, The Systems Scientist

In a recent Michigan State University press release and paper conducted by Michigan State University scholar and sociologist Steven Gold, it is suggested that a lack of resources may help explain the disparity between black entrepreneurship and white entrepreneurship.

White Entrepreneurship is still twice that of black entrepreneurship in today's United States

Currently in the United States, there is a disparity between black owned businesses and white owned businesses. As MSUToday reports, self-employment for whites is more than twice that for blacks. In other words, white entrepreneurship is still twice that of black entrepreneurship in today’s United States. But this doesn’t take into account the urban decay that predominantly black communities face in urban environments.

But as Gold explains, this isn’t just a black and white thing

Immigrants – who benefit from skills, investment capital, family labor, imported goods and wage differentials brought from the country of origin — have higher rates of self-employment than native-born minorities…To a large extent, the most entrepreneurially successful immigrants from countries such as Korea, Vietnam, Cuba, China and Iran came from property-owning upper classes and entered the United States with human capital and money to invest. So it’s no surprise they’ve been successful in small business.

Gold seems to be suggesting a more complex paradigm. Where resources lack in traditionally disenfranchised communities because of historical reasons, for example federally mandated segregation of the 19th century and formal and ad-hoc red-lining policies of the 20th century, immigrants from other countries, particularly those from the higher echelons of their respective societies, are entering the United States and hitting the ground running with resources already in hand and a support system to boost.

You can read more about this press release and the sociological study at MSUToday.

For more Urban Dynamics news, see $15 an Hour? Not so Fast and  Modern American Journalism, Not a Place for Science.

**Remember, there is nothing more American than discourse. You are always welcome to post your comments, thoughts, and questions below. Feedback is always appreciated!

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