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Economic Development Quarterly
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Developing Self-Employment Among African Americans: The Impact of Household Social Resources on African American Entrepreneurship

Danielle Taana Smith

Rochester Institute of Technology

Entrepreneurship has historically been a vital contributor to the dynamism of American economic activity and has functioned as an important institution for marginalized races and communities. Logistic regression models based on data from the 1993 through 2000 Current Population Surveys from the U.S. Bureau of the Census are used to investigate differences in the probability of self-employment for African Americans and Whites. The investigation of racial differences in entrepreneurship offers both a fundamental view of economic development and of the salience of race in contemporary American economic activity. The results of this study show that household resources have both expected and unexpected effects on entrepreneurship. For example, as expected, being married and having other sources of household income positively affect the likelihood of entrepreneurship for both African Americans and Whites. Unexpectedly, having other working-age adults in the household reduces the likelihood of entrepreneurship for both groups.

Key Words: self-employment • African American entrepreneurship • minority group economic development • household social resources

Economic Development Quarterly, Vol. 19, No. 4, 346-355 (2005)
DOI: 10.1177/0891242405279693
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