Minorities and Ethnic Groups in Entrepreneurship

Описание: Proposals:
Missed Opportunities: New Drugs From Minority Founded Firms in Pharmaceutical Industry

Literature on minority entrepreneurship has shown that the disparity in funding, market access, and other entrepreneurial opportunities. But there is still a lot of unanswered questions regarding the performance of minority founders. In this study, I explore the implication of minority founders on the startup’s product market and an initial public offering. I use panel data of pharmaceutical startups from 1995 to 2018. Preliminary results show that the minority firms are likely to produce fewer drugs, cover fewer drug indications, and are less likely to IPO. These results are robust to a CEM matched sample analysis.

Author:
Shweta Gaonkar, Johns Hopkins University

Skin Tone Bias in Prosocial Microlending


Entrepreneurs of color often face discrimination when seeking financial capital. The literature, however, is devoid of theory on how biases surrounding skin color per se shape access to capital, with most research focusing on racial categorization. We explore the role of colorism—a form of bias based on skin color, irrespective of race. We leverage theory on colorism, linked to theory on social status, to develop arguments concerning how entrepreneur skin color influences microloan funding. We then examine how two strategies commonly used for attracting funds in prosocial domains—revealing language and personal disclosure—act as moderators of the colorism-funding relationship. Results indicate that entrepreneurs with very dark skin color and those with very light skin color face worse funding prospects compared to those with moderate skin darkness.

Authors:
Aaron Anglin, Texas Christian University
Thomas Allison , Texas Christian University
Blakley Davis, Virginia Commonwealth University
Benjamin Warnick, Washington State University
Alexis Smith Washington, Spears School of Business

The Impact of COVID-19 Pandemic on Entrepreneurship: Evidence from the Kauffman Microdata

The widespread of the coronavirus has caused unprecedented contractions in small and entrepreneurial firms. With the overall rate of rebound of entrepreneurial ventures with the CARES act, little evidence has emerged about the effects of the pandemic on the new business formation. From the analysis based on Current Population Survey data, we do not find whether the new entrepreneurship rate increased. However, we find that the rate of new business creation by the unemployed, particularly African American, increased, but the rate of new business creation by the employed decreased since the COVID-19 pandemic. Importantly, these findings are particularly dominant in states that are severely affected by COVID-19. Thus, we reveal that the impacts on entrepreneurship during the pandemic vary across employment status and races.

Authors:
Taekyun Kim, KAIST
Wonjoon Kim, KAIST

Romani Entrepreneurship and Institutional Linkages

Through a study of Romani Entrepreneurs, this proposed project examines how the effects of ties to established institutions differ depending on an entrepreneurs’ ethnicity. While previous research has demonstrated the importance of institutional linkages for firm performance and survival, very little research has examined how these effects may differ depending on an entrepreneurs’ race. We argue that Romani entrepreneurs will have greater benefits from institutional linkages. These linkages help address discriminatory beliefs about race and entrepreneurship consequently helping Romani entrepreneurs. Our proposed study involves a mixed methods research design including qualitative work in Slovakia and quantitative analyses of business registry data. We extend research past simply identifying barriers for minority entrepreneurs to providing insights on the strategic actions firms may take to overcome these barriers.

Authors:
Grady Raines, Cornell University
Peter Polhill, Brigham Young University
Wesley Sine, Cornell University

This presentation was part of the SMS 42nd Annual Conference held in London.

Minorities and Ethnic Groups in Entrepreneurship | Strategic Management Society