Journal Article

Racial Differences in Returns on Business Ownership


Abstract: In this Commentary, we document entrepreneurial income and investments for households of different racial backgrounds and provide estimates of investment yields. We find that an average Black household engaged in entrepreneurial activity has a higher rate of return on its business followed by Hispanic households and white households, a circumstance which makes low entrepreneurship rates among Black and Hispanic communities appear all the more puzzling.

Keywords: Diversity;

https://doi.org/10.26509/frbc-ec-202303

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2023-02-06

Volume: 2023

Issue: 03

Pages: 6