How Does State and Local Government Support Affect Entrepreneurs’ Gender, Age and Race?
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Abstract
In this study, we test whether state and local government support attract female entrepreneurs. We also test to see whether government support attracts younger entrepreneurs and minorities. First, we differentiate between the U.S. states where state government support is high and the U.S. states where state government support is low. Then, we compare small business owners’ gender, age, and race across high- and low-state government support states. We find that there is no significant difference in owners’ gender across high- and low-state government support states. However, our results show that, in the states where state government support is high, there are more young entrepreneurs (age25-34) and fewer middle-aged entrepreneurs (age45-54) when compared to the other states. Our results also show that, in these states, there are fewer Asian or Hispanic entrepreneurs when compared to the other states. When we differentiate between the states where local government support is high and the states where local government support is low, we find that there is no significant difference in owners’ gender or age across high- and low-local government support states. However, our results show that, in the states where the local government support is high, there are more white entrepreneurs and fewer Asian or Hispanic entrepreneurs.
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