Research Finds Black Entrepreneurs More Likely to Share Ideas with Expert Strangers Than Friends and Family

New research from scholars at Duke University in North Carolina and the University of Utah has found Black entrepreneurs are less likely to share their ideas within their personal network and are more likely to seek advice from a stranger who is a business expert.

The research was conducted by analyzing data from a previous Duke University survey that asked over 50,000 people about their potential to generate business ideas and their confidence in carrying out their ideas. The results found that Black people were more likely than White people to consider a business idea, and there was no significant difference in confidence between the two groups. However, Black people were still less likely to eventually open their own businesses.

To examine the possible causes of this disparity, the research team broke down the entrepreneurial journey into four stages: socializing the business idea within the entrepreneur’s personal network, creating a business plan, seeking market feedback, and seeking financial and professional advice. To their surprise, the researchers found no significant difference between White and Black entrepreneurs’ experiences in the final stages of the entrepreneurial process. The main difference between White and Black entrepreneurs was in the initial socialization stage. The authors found Black people were less likely than White people to share their business ideas with friends. For those that did share their ideas with friends, they were less likely to eventually start a business.

The study authors believe these results can influence policymakers to create better avenues for potential Black business owners, such as community-based mentoring programs that connect entrepreneurs with local business experts.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

In Memoriam: Roscoe Hightower Jr., 1966-2024

Dr. Hightower was a professor of marketing at his alma mater, historically Black Florida A&M University, where he taught for over two decades. He also served the university as the Centennial Eminent Scholar Chair and Professor of Marketing and Facility Management.

Higher Education Gifts or Grants of Interest to African Americans

Here is this week’s news of grants or gifts to historically Black colleges and universities or for programs of particular interest to African Americans in higher education.

In Memoriam: O. Jerome Green, 1954-2024

President of historically Black Shorter College O. Jerome Green passed way unexpectedly on April 8. Since he became president in 2012, the college has experienced record-breaking enrollment and graduation rates, created new academic programs, and established the STEM Center for Academic Excellence.

Federal Report Uncovers Lack of Faculty Diversity and Delay in Federal Discrimination Complaint Processing

In addition to a lack of diversity in higher education faculty, the report revealed a frequent delay by the Department of Education when referring discrimination complaints to the Equal Employment Opportunity Commission.

Featured Jobs