Opportunity recognition processes of black entrepreneurs

Abstract

The reasons for the long-term lagging rate of black American entrepreneurship are not well understood. Rather than look at financial factors, as most of the limited literature that has explored the disparity has done, we examine the opportunity recognition processes of black entrepreneurs. Using data collected from 147 black entrepreneurs, we found the entrepreneurs in our study – all of whom had achieved moderate success – were much more likely to have pursued internally stimulated opportunities than externally stimulated opportunities. The important practical and academic implications are discussed and future research directions are offered.