Individual factors affecting entrepreneurship in Hispanics

Abstract

Purpose

Although there has been considerable research on entrepreneurship (Rauch and Frese, 2000), there has been limited research on Hispanic entrepreneurs (e.g. Peterson, 1995; Shinnar and Young, 2008; Zarrugh, 2007), and much of the literature has been atheoretical or fragmented. Therefore, this paper uses an existing model of entrepreneurship (Baron and Henry, 2011) to understand and explain the factors related to the behaviors of Hispanic entrepreneurs. The purpose of this paper is to consider the literature on Hispanic entrepreneurs relevant to each stage in the model, and presents testable hypotheses to guide future research on the issue.

Design/methodology/approach

In order to uncover the research on Hispanic entrepreneurs several databases were searched including ABI Inform, PsyArticles, and ProQuest. In addition, a review of key entrepreneurship and Hispanic journals (e.g. Hispanic Journal of Behavioral Science) was conducted. Relevant papers from 1980 to date were included.

Findings

Significant research on ethnic entrepreneurship has been conducted, especially on the personal characteristics of entrepreneurs. The extant literature, however, has been primarily atheoretical and lacks empirical evidence to support a consensus regarding the findings. The authors provide a model to guide research on Hispanic entrepreneurs.

Practical implications

Research revealed that Hispanics may be more likely to start new businesses, but also more likely to fail than Anglos (Sullivan, 2007). As a result, this paper highlights the potential obstacles affecting the behavior of Hispanic entrepreneurs, and considers a number of practical implications for enhancing their success rates.

Social implications

Hispanics are the fastest growing minority group in the USA, and entrepreneurship often provides a springboard for their economic advancement and social integration (Wang and Li, 2007). As a result, the present paper has important implications for increasing the success rates and integration of Hispanics in US society. It may also have key implications for policy makers who are trying to identify strategies for increasing the number of Hispanic new business ventures in our society.

Originality/value

The authors believe that this paper adds value to the literature because it uses a theoretical model to explain the factors thought to affect the behavior of Hispanic entrepreneurs. Also, it identifies a number of avenues for future research on the topic. Even though there has been some research on Hispanic entrepreneurs, the authors believe that the current framework will identify the key gaps in the literature and foster additional research.

Citation

C. Canedo, J., L. Stone, D., L. Black, S. and M. Lukaszewski, K. (2014), "Individual factors affecting entrepreneurship in Hispanics", Journal of Managerial Psychology, Vol. 29 No. 6, pp. 755-772. https://doi.org/10.1108/JMP-11-2012-0333