Examining the opportunity recognition processes of black and white entrepreneurs may help improve the lagging rate of black entrepreneurship. Based on the framework provided by Bhave's (1994) model of new venture creation, and using data collected through the Panel Study of Entrepreneurial Dynamics, we found significant differences between the percentage of black and white nascent entrepreneurs who recognized externally-stimulated versus internally-stimulated opportunities and their projected firm revenues. As predicted, black nascent entrepreneurs were more likely to pursue externally-stimulated opportunities with significantly lower expected revenues than their white counterparts. Academic and practical implications are discussed and future research directions are offered.

Black entrepreneurship, Educational attainment, PSED, Black vs white differences,

The study presents considerations for African countries that build off of Crump, Hill, and Taylor (2017). In that study, Crump et al. (2017) argue and present empirical evidence to support the notion that rates of black entrepreneurship (measured by black business ownership) in the U.S. currently presented in entrepreneurship literature are misleading and understated. Once formal and informal economy are considered together, the authors propose that entrepreneurship rates of blacks drastically increase, and likely surpass many other groups. This exploratory study similarly argues and presents evidence that actual rates of business ownership and entrepreneurship derived from formal economy activities in Africa likewise understate the actual rates of entrepreneurship and business ownership there. This study also shows that there are many more advantages to operating in the formal economy than there are to be operating in the informal economy. A tool is provided that can aid entrepreneurship educators to highlight some hidden advantages and disadvantages to people choosing to operate in either economy.

This chapter analyzes government and HBCU action on improving rates of black entrepreneurship in the United States. Small Business Development Centers help citizens and residents become better entrepreneurs and successful business owners, and are located throughout the United States with some being located on HBCU campuses. This study responds to a 25-year declining trend noticed by Fairlie and Desai (2021) in the numbers of Americans, including black Americans, who are becoming entrepreneurs out of necessity as opposed to in response to discovering an entrepreneurial opportunity. Using regression analysis, the study analyzes data sample size of more than 45,000 entrepreneurs across 50 states and in Washington, DC in the Kauffman Early-Stage Entrepreneurship (KESE) dataset. Findings indicate that SBDCs located at HBCUs correspond to drastic increases in black opportunity entrepreneurship as opposed to necessity entrepreneurship in comparison to white and non-white minorities. Implications and suggestions are provided to HBCUs, PBIs, and government policymakers.

The authors use Kauffman Early-Stage Entrepreneurship (KESE) index data of 25 years, to analyze a sample of 42,688 entrepreneurs to make demographic comparisons of black and woman entrepreneurs to others. The study expands on recent research and illustrates that the number of US entrepreneurs who are opportunity-entrepreneurs, declined over the past 25 years. Opportunity-based entrepreneurship yields more favorable economic outcomes than necessity-based entrepreneurship. Logistic analysis is used to compare odds ratios of many demographic groups of entrepreneurs. The study provides added education, age, income, and marriage status comparisons of black entrepreneurs in the US in how they are faring with respect to others. The authors find support for ten of the fourteen hypotheses they test for in their analysis. In conclusion, the report identifies outcomes for black entrepreneurs, and also offers practical implications and promising recommendations to educators.