Heterogeneity of Entrepreneurship Participation between Asian and White Females

Abstract

I investigate race and gender differences in entrepreneurship participation in the US. I first confirm a finding from the previous literature that, among VC-backed firms, the proportion of females among Asian entrepreneurs is higher than the corresponding proportion among White entrepreneurs. I extend this finding to all types of entrepreneurs, including non-VC-backed ones. However, after controlling for basic non-race demographic variables, such as age, education, and marital status, I find no significant difference in entrepreneurship participation between Asian and White females. Instead, the difference is due to White males being more likely to be entrepreneurs than Asian males and White females. Moreover, exposure to an individualistic culture has a positive effect on male entrepreneurship participation, but no effect on female entrepreneurship participation.