The economic implications of clustering on Hispanic entrepreneurship in the US

Authors

  • Ariana Torres Purdue University, Department of Agricultural Economics, 403 W. State Street, KRAN 606, West Lafayette, IN 47907, USA
  • Michael S. Delgado Purdue University, Department of Agricultural Economics, 403 W. State Street, KRAN 617, West Lafayette, IN 47907, USA
  • Maria I. Marshall Purdue University, Department of Agricultural Economics, 403 W. State Street, KRAN 778, West Lafayette, IN 47907, USA

Abstract

This article assesses the effect of Hispanic clustering on Hispanic self-employment in the US and the extent to which endogenous social factors within a cluster may encourage Hispanics to start a business. We address key identification issues in the clustering literature by applying a series of robust econometric techniques to US census data. The study provides empirical evidence on the role of Hispanic clustering on Hispanic entrepreneurship. This article also tackles the constructs of Hispanic entrepreneurial heterogeneity and suggests the clustering of second-generation Hispanics as a potential indicator of the Hispanic entrepreneurial environment. The study derives insight on the economic implications of Hispanic clustering and its benefits and suggests policy recommendations to promote success among Hispanic entrepreneurs. We propose that generational differences across Hispanics is not merely an ethnic control variable, but rather an important factor for the design of strategies and incentives at the federal, state, and local level.

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Published

2021-08-11

Issue

Vol. 31 No. 3 (2021)

Section

Articles

License

Copyright (c) 2021 Ariana Torres, Michael S. Delgado, Maria I. Marshall

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How to Cite

The economic implications of clustering on Hispanic entrepreneurship in the US. (2021). Journal of Small Business Strategy (archive Only), 31(3), 72-87. https://libjournals.mtsu.edu/index.php/jsbs/article/view/1692