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14 Beyond the Narrative: Exploring the Myths of Race, Poverty, and Entrepreneurship

  • Reginald Tucker and Randall M. Croom
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De Gruyter Handbook of Poverty, Disadvantage and Entrepreneurship
This chapter is in the book De Gruyter Handbook of Poverty, Disadvantage and Entrepreneurship

Abstract

Entrepreneurship has been touted as a path to economic empowerment, especially for minorities and those in poverty. However, stark racial disparities persist in business ownership rates and success outcomes. This chapter examines the complexities surrounding race, poverty, and entrepreneurship. We define race as a multidimensional, sociopolitical construct with economic and political consequences. People of color in the United States often face racial discrimination that restricts opportunities for entrepreneurial success. While self-employment may offer some a way to overcome these barriers, we will also critically examine myths surrounding poverty and entrepreneurship. Further, we analyze the challenges posed by financial and social capital gaps faced by minority-owned businesses, which tend to be smaller and less profitable than White-owned businesses due to disparities in lending practices and limited access to networks. Ultimately, this chapter encourages development of practical solutions that promote a more equitable entrepreneurial landscape.

Abstract

Entrepreneurship has been touted as a path to economic empowerment, especially for minorities and those in poverty. However, stark racial disparities persist in business ownership rates and success outcomes. This chapter examines the complexities surrounding race, poverty, and entrepreneurship. We define race as a multidimensional, sociopolitical construct with economic and political consequences. People of color in the United States often face racial discrimination that restricts opportunities for entrepreneurial success. While self-employment may offer some a way to overcome these barriers, we will also critically examine myths surrounding poverty and entrepreneurship. Further, we analyze the challenges posed by financial and social capital gaps faced by minority-owned businesses, which tend to be smaller and less profitable than White-owned businesses due to disparities in lending practices and limited access to networks. Ultimately, this chapter encourages development of practical solutions that promote a more equitable entrepreneurial landscape.

Chapters in this book

  1. Frontmatter I
  2. De Gruyter Handbooks in Business, Economics and Finance V
  3. Contents VII
  4. List of Contributors XI
  5. Preface XXI
  6. Part 1: Understanding the Poverty and Entrepreneurship Interface
  7. 1 Toward a New Paradigm for Poverty Entrepreneurship 1
  8. 2 The Challenges of Poverty When Starting a Business 25
  9. 3 Opportunity Recognition Through the Lens of Poverty 43
  10. 4 Theoretical Frameworks for Research on Poverty and Entrepreneurship: A Review and Agenda for Future Research 61
  11. Part 2: Contextual Variables Affecting Poverty and Entrepreneurship
  12. 5 The Informal Economy and Poverty in Developing and Emerging Economies: Outlining a Process of Semi-formalization to Support Development 111
  13. 6 Understanding Entrepreneurship and the Informal Sector 135
  14. 7 Business Formalization, Government Program Participation, and Civic Engagement: Evidence from West Java, Indonesia 157
  15. 8 Entrepreneurship and Poverty: A Comparative Institutional Perspective 183
  16. 9 Ecosystems and the Poverty Entrepreneur 207
  17. 10 It Takes a Village: Towards Entrepreneurial Ecosystems Dedicated to the Poor 229
  18. 11 Child Entrepreneurs in Bangladesh: The Role of the Poor Family in Initiating Businesses 253
  19. 12 From Surviving to Thriving: The Multiplier Effect of Women’s Entrepreneurship in Emerging Markets 269
  20. 13 The Impact of Poverty, Disadvantages, and Entrepreneurship Among Refugee Women Entrepreneurs in Glasgow- Scotland 295
  21. 14 Beyond the Narrative: Exploring the Myths of Race, Poverty, and Entrepreneurship 331
  22. Part 3: Mechanisms to Facilitate Sustainable Entrepreneurship
  23. 15 The Psychology of Poverty-Based Entrepreneurs: Faith-Community Involvement, Status Hierarchies, and Venture Flourishing 357
  24. 16 Faith and Entrepreneurial Decision- Making: Case Experiences with People in Poverty Circumstances 381
  25. 17 Poor Entrepreneurs’ Strategies to Overcome Resource Constraints 403
  26. 18 Entrepreneurial Hustle and the Poverty Entrepreneur: Uncovering Alternative Means to Achieve Success 429
  27. 19 Microfinance for Poverty Entrepreneurs: Addressing Gender-Based Violence for Business Success 445
  28. 20 Alternative Funding Mechanisms for Low-Income Entrepreneurs in Sub-Saharan Africa 465
  29. 21 Microfranchising and the Poor 493
  30. 22 Patterns, Process, and Socioeconomic Impacts of Smallholders’ Agro-machinery- Based Entrepreneurship in Bangladesh 513
  31. 23 Marketing Practices and the Entrepreneurial Success of Women in Côte d’Ivoire: The Role of Cultural Systems 533
  32. 24 The Cooperative Enterprise and Poverty Reduction in Africa 553
  33. 25 Approaches to Mentoring When Supporting Poverty Entrepreneurs 577
  34. Part 4: Priorities for Advancing the Poverty and Entrepreneurship Interface
  35. 26 Critical Perspectives on Research Priorities at the Poverty and Entrepreneurship Interface 607
  36. 27 Fostering Poverty Entrepreneurship: A Review of Key Policy Needs and Approaches in the United States 619
  37. 28 Overcoming Adversity: Priorities of Disadvantaged Entrepreneurs Participating in a Holistic Community Intervention Program 643
  38. 29 Priorities When Attempting to Scale a Poverty Intervention Program 667
  39. List of Figures 691
  40. List of Tables 693
  41. About the Editors 695
  42. Index 697
https://doi.org/10.1515/9783111215013-014

Chapters in this book

  1. Frontmatter I
  2. De Gruyter Handbooks in Business, Economics and Finance V
  3. Contents VII
  4. List of Contributors XI
  5. Preface XXI
  6. Part 1: Understanding the Poverty and Entrepreneurship Interface
  7. 1 Toward a New Paradigm for Poverty Entrepreneurship 1
  8. 2 The Challenges of Poverty When Starting a Business 25
  9. 3 Opportunity Recognition Through the Lens of Poverty 43
  10. 4 Theoretical Frameworks for Research on Poverty and Entrepreneurship: A Review and Agenda for Future Research 61
  11. Part 2: Contextual Variables Affecting Poverty and Entrepreneurship
  12. 5 The Informal Economy and Poverty in Developing and Emerging Economies: Outlining a Process of Semi-formalization to Support Development 111
  13. 6 Understanding Entrepreneurship and the Informal Sector 135
  14. 7 Business Formalization, Government Program Participation, and Civic Engagement: Evidence from West Java, Indonesia 157
  15. 8 Entrepreneurship and Poverty: A Comparative Institutional Perspective 183
  16. 9 Ecosystems and the Poverty Entrepreneur 207
  17. 10 It Takes a Village: Towards Entrepreneurial Ecosystems Dedicated to the Poor 229
  18. 11 Child Entrepreneurs in Bangladesh: The Role of the Poor Family in Initiating Businesses 253
  19. 12 From Surviving to Thriving: The Multiplier Effect of Women’s Entrepreneurship in Emerging Markets 269
  20. 13 The Impact of Poverty, Disadvantages, and Entrepreneurship Among Refugee Women Entrepreneurs in Glasgow- Scotland 295
  21. 14 Beyond the Narrative: Exploring the Myths of Race, Poverty, and Entrepreneurship 331
  22. Part 3: Mechanisms to Facilitate Sustainable Entrepreneurship
  23. 15 The Psychology of Poverty-Based Entrepreneurs: Faith-Community Involvement, Status Hierarchies, and Venture Flourishing 357
  24. 16 Faith and Entrepreneurial Decision- Making: Case Experiences with People in Poverty Circumstances 381
  25. 17 Poor Entrepreneurs’ Strategies to Overcome Resource Constraints 403
  26. 18 Entrepreneurial Hustle and the Poverty Entrepreneur: Uncovering Alternative Means to Achieve Success 429
  27. 19 Microfinance for Poverty Entrepreneurs: Addressing Gender-Based Violence for Business Success 445
  28. 20 Alternative Funding Mechanisms for Low-Income Entrepreneurs in Sub-Saharan Africa 465
  29. 21 Microfranchising and the Poor 493
  30. 22 Patterns, Process, and Socioeconomic Impacts of Smallholders’ Agro-machinery- Based Entrepreneurship in Bangladesh 513
  31. 23 Marketing Practices and the Entrepreneurial Success of Women in Côte d’Ivoire: The Role of Cultural Systems 533
  32. 24 The Cooperative Enterprise and Poverty Reduction in Africa 553
  33. 25 Approaches to Mentoring When Supporting Poverty Entrepreneurs 577
  34. Part 4: Priorities for Advancing the Poverty and Entrepreneurship Interface
  35. 26 Critical Perspectives on Research Priorities at the Poverty and Entrepreneurship Interface 607
  36. 27 Fostering Poverty Entrepreneurship: A Review of Key Policy Needs and Approaches in the United States 619
  37. 28 Overcoming Adversity: Priorities of Disadvantaged Entrepreneurs Participating in a Holistic Community Intervention Program 643
  38. 29 Priorities When Attempting to Scale a Poverty Intervention Program 667
  39. List of Figures 691
  40. List of Tables 693
  41. About the Editors 695
  42. Index 697
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