ENTREPRENEURSHIP AND ETHNICITY: THE ROLE OF HUMAN CAPITAL AND FAMILY SOCIAL CAPITAL

This study of Brazilian immigrants in the United States examines the extent to which the human capital and the family social capital theories explain the probability of owning a business. This study incorporates into the analytical models a variable that controls for the presence of a market niche and tests for the net effects of human and family social capital. Analyses of U.S. 2000 Census data find that high school graduates are more likely to own their own business and that a college education exerts a significantly larger effect than that of a high school education on the probability of owning a business. Additionally, the presence of a co-habiting spouse, treated as an indicator of family social capital, enhances the probability that immigrants will own their own establishment. The results support the human capital and the family social capital theories. The study discusses implications for theory and future research.