Abstract
This study explores African-American (AA) entrepreneurship through the lens of social capital. Using a foundation of social capital theory, this study attempts to validate the hypothesis that social capital is a determinant of whether AA entrepreneurs choose to function in the formal or informal economies. One hundred and sixteen African American entrepreneurs participated in the study, which utilized respondent driven sampling, a technique for studying hidden populations. Although the results for the study failed to confirm the hypothesis, they do offer some insight into the relationship between the informal and formal economies and minority entrepreneurship.
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