The colors of entrepreneurship in Brazil: Effects of ethnicity on income, from a behavioral perspective
Keywords:Entrepreneurship, Black entrepreneurship, Effectuation theory, Necessity entrepreneurship.
AbstractObjective: To analyze whether the behavioral logic of decision-making could mitigate the effects of ethnic prejudice on the entrepreneur’s income. Method: Based on the theme of entrepreneurship by necessity and the effectuation theory, we prepared a survey with 107 entrepreneurs in Brazil, considering different socioeconomic aspects capable of mitigating or accentuating such effects. We used correlation analysis and linear regression to examine the data collected, with socioeconomic variables considered control variables. Originality/Relevance: The study contemplates the predominant logic of entrepreneurial behavior and the necessity entrepreneurship in discussing the effects of ethnic prejudice on the income of those who undertake it. Results: The results corroborate the research developed by the Global Entrepreneurship Monitor, indicating that the ethnic condition has harmful effects on the entrepreneur’s gain due to prejudice but indicates partial mitigation of such effects on the behavioral logic adopted by the entrepreneur. Theoretical/methodological contributions: This study points out how the interaction between ethnicity and entrepreneurial behavior can also cause positive results in the earnings of the entrepreneur, although the effects of prejudice are not fully mitigated, even if there is an effort in planning or using the knowledge, skills, and networking of the entrepreneur. Social/managerial contributions: Behavioral characteristics in decision-making (causation or effectuation) can mitigate the effects of ethnic prejudice on the entrepreneur’s income. Although not statistically significant, these characteristics have the potential to provide information for the construction of affirmative public policies for insertion and entrepreneurial education.
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