Opportunity Recognition Differences Between Black and White Nascent Entrepreneurs: A Test of Bhave’s Model
Vol. Volume 13, Number 1 March/2008
Robert. Singh, Edwin. Knox, Micah Crump
Examining the opportunity recognition processes of black and white
entrepreneurs may help improve the lagging rate of black
entrepreneurship. Based on the framework provided by Bhave’s (1994)
model of new venture creation, and using data collected through the
Panel Study of Entrepreneurial Dynamics, we found significant
differences between the percentage of black and white nascent
entrepreneurs who recognized externally-stimulated versus
internally-stimulated opportunities and their projected firm revenues.
As predicted, black nascent entrepreneurs were more likely to pursue
externally-stimulated opportunities with significantly lower expected
revenues than their white counterparts. Academic and practical
implications are discussed and future research directions are offered.