SEGMENTING THE POPULATION OF ENTREPRENEURS: A CLUSTER ANALYSIS STUDY
Vol. Volume 13, Number 3 September/2008
MELISSA S. CARDON
RACHEL S. SHINNAR
EDWARD G. ROGOFF
This paper contributes to our understanding of minority entrepreneurs in the U.S. by showing that ethnicity alone should not be used to describe or categorize small business owners. We examine a sample of 508 entrepreneurs from three minority groups (African, Mexican, and Korean Americans) and a white group using cluster analysis to explore a categorization pattern that best describes the differences among these entrepreneurs. Our findings suggest that minority entrepreneurs are in fact a very heterogeneous group on a multitude of dimensions such as motivations for entry, satisfactions with the business, nature of problems experienced, and demographics of the business such as its size and gross income. Based on our findings, we recommend that educational and support programs targeting minority entrepreneurs should not focus on ethnicity alone; rather, they should consider other variables as well.