"The wealthiest nascent entrepreneurs are more likely to start a business than are their less wealthy counterparts, concludes a study released today by the Office of Advocacy of the U.S. Small Business Administration. However, this effect differs when the race and ethnicity of the entrepreneur are considered as factors.
“Self-employment rates among minorities are generally less than would otherwise be predicted,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “Yet, there tends to be more ‘pre-business’ activity among nascent minority entrepreneurs. This study looks at some of the possible factors that might explain that gap.”
The study finds that as a whole, the wealthiest (top 25 percent as determined by net assets) nascent entrepreneurs (individuals putting effort towards opening a business, but who have not yet done so) are four times more likely to open a business than those in the lower part of the wealth distribution. However, even controlling for net wealth, white nascent entrepreneurs are more likely to open a business than are Black or Hispanic nascent entrepreneurs." Source: U.S. Small Business Administration, Office of Advocacy
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