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The underrepresentation of Latinx in entrepreneurship and the identification of social, societal, and institutional barriers to close the gap

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The underrepresentation of Latinx in entrepreneurship and the identification of social, societal, and institutional barriers to close the gap

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Content Underrepresentation of Latinx in Business Ownership and Markets
by
Hector Cabrera
Rossier School of Education
University of Southern California
A dissertation submitted to the faculty
in partial fulfillment of the requirements for the degree of
Doctor of Education
December 2023

ii
© Copyright by Hector Cabrera 2023
All Rights Reserved

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The Committee for Hector Cabrera certifies the approval of this Dissertation
Dr. Robert Turrill
Dr. Patricia E. Tobey
Dr. Esther Kim, Committee Chair
Rossier School of Education
University of Southern California
2023

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Dedication
This dissertation is dedicated to the woman whose unwavering strength, resilience, and
love have shaped my life's journey. Angie Cabrera, a single mother who fearlessly raised three
children, including myself, instilled in us the values of hard work, perseverance, and grit.
To my beloved mother, Angie Cabrera —
As immigrants from Mexico, we faced numerous challenges, but your determination and
sacrifice paved the way for a better future. Your life was a testament to the belief that with
dedication and effort, anything is possible. You worked tirelessly to provide for us, emphasizing
the importance of education and the value of earning everything we have in life. Your “si se
puede attitude” became our guiding principle, inspiring us to overcome obstacles and pursue our
dreams.
The invaluable life lessons you imparted, and your unconditional love shaped the person I
am today. Your passing on May 19, 2019, while I was deployed to Iraq, left an indelible void in
my heart. Even in your absence, your spirit continues to guide me, urging me to persevere in the
face of challenges.
This dissertation is not only a culmination of academic endeavors, but a tribute to your
enduring legacy. Your memory is woven into the fabric of my life, and every milestone achieved
is a testament to the foundation you laid. I dedicate this work to you, expressing my eternal
gratitude for the sacrifices made, the lessons taught, and the love bestowed.

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Table of Contents
Chapter One: Overview of the Study 1
Context and Background of the Problem 2
Purpose of the Project and Research Questions 6
Importance of the Study 7
Definition of Terms 10
Organization of the Study 11
Chapter Two: Review of the Literature 11
Overview of Latinx Entrepreneurship 12
Demographic and Geographic Trends in Entrepreneurship 19
Challenges of Entrepreneurship 24
Fostering Entrepreneurship 28
Supporting Latinx Businesses 41
Internet Entrepreneurship 46
Theoretical Framework 48
Summary 52
Chapter Three: Methodology 54
Research Questions 54
Overview of the Design 55
Research Setting 56
Data Sources 59
Data Collection Procedures 61
Data Analysis 62
Ethics 65
Chapter Four: Findings 65

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Participants 67
Research Question One 74
Lack of Access to Capital 74
The Lack of Education 78
Discussion for Research Question One 81
Research Question Two 84
Negative Perceptions 84
Personal and Cultural Factors 87
Entrepreneurship Perception 92
Results for Research Question Two 93
Summary 95
Chapter Five: Discussion 96
Discussion of Findings 98
Research Question One 98
Research Question Two 102
Recommendations for Practice 105
Recommendation One 106
Recommendation Two 108
Recommendation Three 110
Recommendation Four 112
Implecations for Practice 114
Future Research 116
Conclusions 117
References 119
Appendix A: Interview Protocol 139

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List of Tables
Table 1: 67
List of Figures
Figure 1: 51

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Chapter One: Overview of the Study
Although the population of Latinx individuals residing in the United States has increased
steadily since 2000, reaching approximately 18% of the total population, the number of Latinx
entrepreneurs has not increased at a commensurate rate (Carpenter & Loveridge, 2021; Horst &
Marion, 2019). Of the 12.2 million total business owners in the United States, only 600,000 are
U.S.-born Latinx, and approximately 1.2 million are immigrant Latinx business owners (Fairlie,
2018). These figures represent less than 14% of all business owners in the United States (U.S.
Census, 2022). This disparity highlights the repressed entrepreneurial activities among the Latinx
population and the need to address barriers to entrepreneurship. Without these efforts, the wage
and opportunity gap between Latinx individuals and European Americans is likely to continue
(Amende et al., 2021). Many factors contribute to Latinx entrepreneurship, including income and
educational level, generational status, and geographic and residential location (Carpenter &
Loveridge, 2021; Pisani et al., 2017). Motivating factors for Latinx individuals to run their own
businesses include limited alternative labor options, increased economic opportunity, and
increased societal status (Regalado, 2020). Despite the positive opportunities that
entrepreneurship could provide, a gap remains in the participation of Latinx individuals in
entrepreneurship compared to European American peers (Orozco, 2021).
Currently, there is limited research on the perspectives of Latinx individuals on business
ownership and entrepreneurship (Carpenter & Loveridge, 2021; Pisani et al., 2017). This study
examinesLatinx business students' perspectives, knowledge, and motivations as they relate to the
barriers preventing Latinx individuals from pursuing entrepreneurial activity. The insights gained
from these perceptions could be used to reduce barriers to entrepreneurship by helping

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universities, and other public programs better address perceived barriers to entrepreneurship
through their program offerings, thus contributing to narrowing the wage and opportunity gap for
Latinx individuals (Pisani et al., 2017).
Context and Background of the Problem
Entrepreneurship contributes to the growth of the economy in both developing and
developed countries (Doran et al., 2018). Notably, in developed countries, entrepreneurial
attitudes exert a more pronounced influence on the gross national product (GNP) compared to
their impact in developing countries (Doran et al., 2018). Entrepreneurial attitudes, comprising
individuals' general perspectives on entrepreneurship and their perceptions of it as a desirable
pursuit, exhibit variations across different countries (Doran et al., 2018). Cultivating positive
attitudes about entrepreneurship relies heavily upon a person's belief in their ability to succeed;
consequently, having positive entrepreneurial role models helps decrease entrepreneurial failure,
albeit in the context of developed countries (Doran et al., 2018). Positive attitudes about
entrepreneurship, in addition to government agencies lending their support, drive economic
growth. In developed countries entrepreneurs strive to profit, while in developing countries
entrepreneurs strive to support their families.
In the United States, minority entrepreneurs are the fastest-growing segment of the
economy, yet they also face tremendous obstacles accessing capital (Bates, 2022). In order for
entrepreneurs to succeed, access to financial capital is vital and that is true especially for
minority entrepreneurs (Bates, 2022; Hwang et al., 2019). However, there are significant
disparities between Latinx, European Americans, and other minorities (Fairlie, 2018).

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According to the U.S. Census of 2022, 19% of businesses are minority-owned, while
21.4% were women-owned. Lantix-owned businesses grew 346,836 from 2019 to 375,256 in
2020 and had 2.9 employees on their payrolls. In 2021, Latinx people made up almost 20% of
the United States population, yet less than 6% of all businesses were owned by Latinx
individuals (U.S. Census, 2022). Asian-owned businesses in 2020 totaled 612,194 and employed
1.3 million people. The number of Black-owned businesses in 2020 was 140,918 and they
employed 1.3 million people (U.S. Census 2022). American Indian and Alaska Native-owned
businesses totaled 40,392 and they employed 243,523. The number of Native Hawaiian and
Other Pacific Islander-owned businesses came to a total of 8,822 and they employed 60,129
people (U.S. Census 2022). Furthermore, the total population in the United States in 2020 is
much more multiracial than in the past with great numbers of most minority race and ethnicity
groups. The European population in the United States decreased by 8.6% since 2010 (U.S.
Census, 2022).
Though many factors contribute to the disparity in business ownership, research
demonstrated that a primary factor is the statistically lower education level achieved by
American-born Latinx compared to European Americans (Fairlie, 2018). Additionally, Latinx
individuals tend to have lower salaries and less access to capital, which can discourage business
ownership (Fairlie, 2018). This system perpetuates, as Latinx youth have fewer examples of
successful Latinx entrepreneurs to emulate (Amende et al., 2021).
Distinguishing entrepreneurial characteristics within the Latinx population reveals
disparities between native-born and foreign-born individuals, particularly along factors like age,
nativity, business sector, and nationality. Foreign-born Latinx individuals are likely to have
higher education levels, speak multiple languages, and possess more business experience than

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native-born Latinx business owners (Siles & Martinez, 2021). Whether foreign or native-born,
Latinx business owners create essential economic activity in cities and rural communities
(Constantine, 2019; Carpenter & Loveridge, 2021). Though there are benefits of
entrepreneurship, many Latinx individuals perceive challenges and barriers which discourage
them from pursuing business ownership (Siles & Martinez, 2021).
Some of the benefits of becoming an entrepreneur have been identified in the literature.
When compared to people who are employees in developed countries, life satisfaction tends to
be substantially higher among entrepreneurs due to their ability to fulfill goals they have set and
to engage in meaningful activity (Larsson & Thulin, 2019; Rojas et al., 2022). However, if a
person becomes an entrepreneur out of necessity, which is common in developing countries, they
tend to be less satisfied with their life (Larsson & Thulin, 2019). Entrepreneurs can take control
instead of being under the control of the market, allowing them to be proactive instead of passive
when seeking in-depth knowledge to decide if an opportunity is feasible or not (Zhao &
Smallbone, 2019). An entrepreneur tends to be goal-oriented, self-sufficient, independent, and
autonomous (Dimov & Pistrui, 2020). Entrepreneurs see opportunity whereas others see barriers
(Abreu et al., 2019). Research has shown that self-employment, or entrepreneurship, is expected
to grow in the next few years as people decide to work at home with flexible schedules that can
be arranged around household duties (Daniel & Owen, 2022). Therefore, scholars need to
provide a robust understanding so policymakers and support services can be enhanced (Daniel &
Owen, 2022).
Latinx business owners are more likely than general entrepreneurs to begin businesses in
less profitable service sectors. Many are driven to start businesses based on a lack of profitable
employment alternatives (Gavino et al., 2018). Under these conditions, many Latinx businesses

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struggle to gain momentum and produce significant revenue for individuals and families. Latinx
business owners are also more likely to start unofficial businesses, such as taco stands, catering,
handyman services or maid services, which typically produce significantly less revenue than
more traditional business enterprises (Diaz, 2021). These entrepreneurial endeavors frequently
prove beneficial for the proprietors and possess the capability to sustain themselves. However,
understanding how to support Latinx businesses in creating registered, higher-growth potential
businesses is vital for closing the economic gap in the United States between Latinx individuals
and individuals of European American descent (Constantine, 2019). Lower educational
achievement levels and less access to capital contribute to lower business ownership rates,
perpetuating the economic opportunity gap between Latinx and European Americans (Oreen,
2020; Pullés, 2020). In addition to substantial gaps in opportunity between Latinx and European
Americans, research has established that Latinx individuals have perceptions about
entrepreneurship which may influence their interest in trying to become business owners
(Orozco, 2021).
Understanding the factors influencing Latinx individuals to pursue or avoid
entrepreneurial activity is critical to addressing economic inequities in the United States
(Carpenter & Loveridge, 2021; Fairlie, 2018; Pullés, 2020). However, there is a gap in the
literature regarding the perceptions, knowledge, and motivation of Latinx members that prevent
them from pursuing business ownership and perceived barriers to becoming entrepreneurs
(Pullés, 2020). By understanding the knowledge, perceptions, and motivation of Latinx
individuals, this study provides critical information about how to address the gaps and challenges
resulting in lower entrepreneurial activity among the Latinx community.

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Students are commonly used as samples in research studies, at least in the behavioral
sciences (Bordens & Abbott, 2014). Even though they may or may not be representative of the
larger population, the information gained is still valuable to understanding a problem of a
particular subpopulation. For example, the goal of a study may be focused on a particular group
of students in connection with their race or ethnicity, and so generalizing the general population
is not needed. Furthermore, there are inconsistent findings about whether the generalization of
students can be representative of the general population (Bordens & Abbott, 2014). This study is
not a behavioral science study, but it is focused on Latinx students in the area of
entrepreneurship and the reluctance to develop their own business, so the findings contribute to
the understanding of this particular subpopulation.
Participants in this study are Latinx students attending a prominent California University
known by the pseudonym “California University.” California University is known for having a
reputable business program, thus attracting students with an interest in business development and
entrepreneurship. Additionally, the university is in a city in California with a large Latinx
population and thriving Latinx culture.
Purpose of the Project and Research Questions
The purpose of this qualitative descriptive study was to evaluate the perceptions,
knowledge, and motivation of Latinx members that prevent them from pursuing business
ownership and perceived barriers to entering business markets. By gaining additional
information about the knowledge, perceptions, and motivations of Latinx individuals, this study
provides information to educational and public program administrators about how to address
inequities that result in lower entrepreneurial activity. Providing greater economic opportunity

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for Latinx individuals can assist in closing the economic gap that exists in the United States
between European Americans and Latinx individuals (Horst & Marion, 2019). The research
questions that guide the study are:
RQ1: What institutional/organizational barriers do participants perceive to prevent Latinx
members from entering entrepreneurship?
RQ2: What personal and cultural factors do participants perceive influences Latinx
individuals to pursue or avoid entrepreneurial activity?
Importance of the Study
This study is significant because it provides new information about Latinx students
regarding the perceptions, knowledge, and motivation which may prevent them from pursuing
entrepreneurial ambitions. Members of the Latinx community make up almost 20% of the United
States population, but they represent a small portion of business owners (Carpenter & Loveridge,
2021). Though comparatively few Latinx own and operate their businesses, the economic
activity of those businesses is important and influential to urban, suburban, and rural
communities across the country (Pullés, 2020). Additionally, both the Latinx population and
businesses are growing especially in rural communities (Gallardo & Bishop, 2020). The
population of Latinx individuals is expected to nearly double by 2050 (Latin American
Association, n.d.). By 2050, the number of Latinx entrepreneurs is expected to grow to 29% of
all businesses compared to 17% in 2021 (JPMorgan Chase & Co, 2023). Latinx businesses span
across a variety of sectors, and many provide essential services that would otherwise be lacking
in rural or urban communities (Pullés, 2020).

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At a micro-level, Latinx business owners create critical income in local economies. As
many other groups of Americans moved away from smaller rural communities, Latinx
individuals moved into rural areas (Lichter & Johnson, 2020). These rural businesses provide
critical services to individuals and support the local economy. Without these new businesses,
many rural communities in the United States would struggle to produce critical goods and
provide employment for residents (Dávila et al., 2020). This study is significant because it
explores how to support Latinx entrepreneurs who later support local economies and provide
employment. Potentially to a greater degree than other demographics (Gamboa, 2020), Latinx
business owners typically start businesses in lower-income rural communities and small towns,
thereby serving an essential role in community revitalization and stabilization (Amarante, 2020;
Robles et al., 2020). To support Latinx business owners is to support these communities, which
makes the success of Latinx businesses critical to both practice and academic research (Farrell et
al., 2019). Supporting Latinx businesses and Latinx entrepreneurship is valuable for research
because it helps increase the representation and visibility of Latinx individuals in the business
world and contributes to the growth of the economy. Studies found that increasing the support of
Alvarez and Barney (2014) argue that Latinx entrepreneurship can act as a dual engine, driving
economic growth while simultaneously reducing wealth and income disparities. Additionally,
supporting Latinx businesses and entrepreneurs through research can increase the representation
and visibility of Latinx individuals in the business world, which can help promote diversity and
inclusion in the business community (Lopez & de la Torre, 2015). Furthermore, supporting
Latinx businesses and entrepreneurs through research can help promote innovation and
competitiveness in the market by providing new and unique products and services to customers
(Flores & Oyserman, 2009).

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Current research demonstrates that Latinx individuals perceive a high degree of risk
associated with entrepreneurship compared to European Americans (Orozco, 2021). However,
academic literature cannot address which factors influence this perception (Carpenter &
Loveridge, 2021; Horst & Marion, 2019: Orozco, 2021). Studies have shown that, on average,
Latinx individuals are less likely to achieve higher levels of education and have less access to
personal and loaned capital compared to European Americans (Pisani et al., 2017). Research by
Gandara, Cortes, and Kleinfeld (2012) supports this claim, documenting how Latinx students
encounter language barriers, limited social capital, and inadequate school resources, hindering
their educational attainment. Lower levels of education limit the Latinx population’s ability to
start and grow successful businesses (Lopez & de la Torre, 2015). Limited access to personal and
loaned capital further exacerbates the difficulties of starting and growing successful businesses
(Flores & Oyserman, 2009). Though these factors would reasonably influence Latinx ability and
willingness to pursue business ownership, it is vital to understand how Latinx individuals who
were able to obtain higher education levels perceive business ownership (Orozco, 2021). By
soliciting information on the perceptions of Latinx attending higher education institutions, this
study provides valuable information that could be used to address barriers to Latinx
entrepreneurship. It is important to address these barriers in order to increase access to education
and capital for Latinx entrepreneurs and to promote the entrepreneurial growth of the Latinx
population.
Overview of the Theoretical Framework and Methodology
The theoretical frameworks for this study are Cochran's (1965) theory of
entrepreneurship and Kunkel's (1965) theory of entrepreneurship supply. Cochran (1965) states
that entrepreneurial perceptions and intentions are influenced by individual characteristics,

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societal expectations, and the barriers associated with business ownership. In summary,
individuals are more likely to be entrepreneurs if they have personal characteristics associated
with entrepreneurship, such as a high tolerance for risk and belonging to a culture that
encourages entrepreneurship. If the individual's barriers to entrepreneurship are surmountable,
they are likely to have high entrepreneurial intent (Cochran, 1965).
Kunkel's (1965) theory of entrepreneurship supply states that the main factors influencing
entrepreneurial behavior are demand, limitations, labor, and opportunity. Rather than focusing on
personal and societal factors, Kunkel (1965) focuses primarily on the market forces related to
entrepreneurship. Kunkel (1965) argues that an individual is most likely to start a business when
they perceive an opportunity to achieve financial gain, when limitations related to the business
are low and when there is a good supply of labor available to help operate the business.
The study has a qualitative descriptive design, and uses semi-structured interviews as the
primary data collection instrument. A qualitative study is most appropriate as it focuses on
human perceptions, experiences, and social structures (Fossey et al., 2002). Furthermore, a
descriptive design is appropriate because it seeks to describe and define the phenomena of Latinx
entrepreneurship and the barriers perceived by Latinx individuals.
Definition of Terms
Business Ownership. An individual owns a significant stake in a commercial business'
economic activity (Carpenter & Loveridge, 2021).
Community. A group of people living in the same geographic location or belonging to a
group with related characteristics (Orozco, 2021).

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Entrepreneur. An individual who operates a business assumes the risk associated with
new business enterprises (Carpenter & Loveridge, 2021).
Latinx. Individuals of Latin American cultural or ethnic identity (Munoz & Spain, 2015).
Organization of the Study
This chapter introduced the topic of the study and the problem it seeks to address. It
included a discussion of the theoretical framework which guides the study and defines key terms.
Chapter Two provides a discussion of recent literature on the topic of Latinx entrepreneurship.
Chapter Three summarizes the study methodology and discusses participant recruitment, data
collection, and analysis. Chapter Four presents the study results. The study concludes with
Chapter Five, which analyzes the findings and recommends future research and practice.
Chapter Two: Review of the Literature
There are disparities between Latinx entrepreneurship and the entrepreneurship of
European Americans. Despite constituting nearly 20% of the United States population, Latinx
individuals own only approximately 4.9% (600,000 out of 12.2 million) of businesses in the
country (Fairlie, 2018). The disparity in entrepreneurship participation rates may be related to
several factors, including differences in the population's average age, lower education levels
among Latinx individuals, and less access to start-up capital (Regalado, 2020). Relatedly, studies
on entrepreneurial perception suggest that Latinx individuals perceive entrepreneurship to be
highly risky (Orozco, 2021). Though inherent risks are involved with entrepreneurship, strong
perceptions of risk could suppress Latinx interest in exploring business ownership (Orozco,
2021).

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Lower rates of entrepreneurship among Latinx individuals could widen an alreadypresent wage gap between Latinx and European Americans (Amende et al., 2021). Latinx
households have 48 cents on the dollar compared to European Americans, which seriously
differentiates the quality of life, health, and childhood opportunities (Fairlie et al., 2020).
Addressing the entrepreneurial gap could result in more access to wealth for Latinx families and
reduce other disparity metrics, such as education level and home ownership (Harris, 2021).
This literature review chapter covers topics related to Latinx business ownership,
challenges to entrepreneurship, and opportunities for increasing entrepreneurship among Latinx
individuals. A comprehensive examination of the literature has brought forth noteworthy themes
concerning Latinx entrepreneurship, including unique attributes of the general Latinx
entrepreneur population, support systems available to the Latinx community in the face of
challenges to entrepreneurship, and the significant role of the Internet in Latinx entrepreneurship.
These themes are further investigated in this review.
Overview of Latinx Entrepreneurship
Latinx individuals play a critical role in the United States economy (Sandoval & Rodine,
2020). In the early 1980s, there were approximately 250,000 Latinx-owned businesses in the
United States, generating approximately $15 billion in sales (Orozco & Pisani, 2020). Though
necessary, this share of the United States' economic activity was relatively modest (Orozco &
Pisani, 2020). By the 2010s, the number of Latinx-owned businesses increased to over 3 million
firms with almost $500 billion in revenue (Orozco & Pisani, 2020). Latinx-owned businesses
employ over 2 million workers and contribute almost $71 billion in payroll expenses (Orozco &
Pisani, 2020). Today, Latinx individuals own and play significant roles in the operation of large

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corporations, including Kellogg, Sanchez Oil and Gas, IBC Bank, and ATR International (Pisani
& Perez, 2020).
Statistics of Latinx enterprises suggest disparities in the sector still exist (Pisani & Perez,
2020; Pisani & Morales, 2020). Latinx individuals still operate fewer businesses than their share
of the population would suggest assuming equitable entrance opportunities (Theodos et al.,
2021). Furthermore, when Latinx individuals start enterprises, the businesses tend to be on a
smaller scale with less opportunity for financial reward or growth (Orozco et al., 2020).
Approximately 20% of all firms in the United States have paid employees, while less than 9% of
Latinx-owned businesses have paid employees (Orozco & Pisani, 2020). These metrics suggest
that most companies owned by Latinx proprietors are run exclusively by the owners and their
families. Owner-operated businesses can generate significant returns, but are less likely to
generate wealth for the owner than larger enterprises with employees (Pisani & Perez, 2020).
Furthermore, owners risk experiencing burnout due to the stress of being the sole person
responsible to run and maintain a business.
Understanding Latinx entrepreneurship rates is complicated. One reason is the rapid
changes in Latinx entrepreneurship and population (Regalado, 2020). Further complicating the
academic understanding of Latinx entrepreneurship rates are the high rates of unregistered or
unofficial businesses operated by Latinx owners (Orozco & Pisani, 2020; Regalado, 2020).
According to the 2018 Stanford Latino Entrepreneurship Initiative Survey, one-third of all
unregistered enterprises are operated by Latinx owners (Orozco et al., 2020). Businesses go
unregistered for several reasons, including barriers to filing taxes, lack of ability or literacy to
navigate government institutions to obtain permits, lack of awareness or education from the
owners, immigration and residency status, or lack of initial funding (Pisani & Morales, 2020).

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Unregistered Latinx businesses tend to be smaller, but some transform into large
corporations. In some instances, small or informal operations eventually grow in size and capital
and gain status as officially registered businesses. Classic examples of small informal companies
turning into major economic players include Nike and Apple (Pisani & Morales, 2020). These
are examples of success stories for small businesses which were not Latinx-owned. However,
small, unregistered businesses often do not morph into larger registered enterprises, despite
business viability and effort on behalf of the proprietors (Pisani & Morales, 2020). Even so, it is
estimated that up to 10% of the Gross Domestic Product (GDP) in the United States is generated
by unregistered businesses, suggesting they play a more significant role than their unregistered
status may suggest (Medina & Schneider, 2018).
Latinx individuals operating unregistered businesses often do so out of urgency,
simplicity, or necessity (Pisani & Morales, 2020). Latinx businesses emerged out of necessity
when the owners struggled to find other economic opportunities in traditional frameworks. They
started a business as a last resort to support their family's economic needs. Other Latinx business
owners begin with unregistered enterprises due to the simplicity of start-up, intending to
demonstrate success before registering the business and seeking additional funding later. Finally,
there is a contingent of Latinx business owners who may not be able to register their businesses
due to their residency status or concern about the residency status of their family, social
connections, or employees (Medina & Schneider, 2018; Pisani & Morales, 2020). By creating
viable pathways to address these issues, a more significant contingency of unregistered Latinxowned businesses may find a pathway toward greater legitimacy and increased economic
opportunity for the owners, employees, and communities in which they operate (Medina &
Schneider, 2018; Pisani & Morales, 2020).

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There are Latinx-owned businesses that began small and grew into large corporations. An
example is Brightstar Corp. (revenue at $6.3 billion), which ranked 58 on Forbes America’s
Largest Private Companies in 2012. Molina Healthcare had a revenue of $3.0 billion and was
created to serve families with low incomes and families that are insured by the government, both
vulnerable populations that were found to attend emergency rooms instead of general healthcare
services in 15 states. In 2013 they ranked 423 on the Fortune 500 list (Huffpost, 2013).
With the demographics of the United States changing to include larger immigrant
populations, there is a corresponding rise in the number of employees engaged in hazardous
employment activities (Valdez et al., 2019). Precarious employment is contingent on the
acquisition of new tasks, risky due to the fact that the paycheck is not scheduled, and socially
stratified since there is a stigma attached to the type of work, which can prevent it from leading
to more secure employment opportunities (Valdez et al., 2019).
When considering the benefits of entrepreneurship for Latinx populations, it is crucial to
contextualize the conversation around earning potential (Vallejo & Canizales, 2016).
Entrepreneurial opportunities are sought primarily as a mechanism for building wealth, with
additional benefits related to job control, flexibility, and values (Smith & Mannon, 2020).
Wealth can be built through entrepreneurship by starting and growing successful businesses
(Baum & Locke, 2004). Entrepreneurs who are able to identify a need in the market and create a
product or service to meet that need can generate significant profits and build wealth over time
(Desai & Wheat, 2007). This wealth can come from a combination of profits, investments and
the eventual sale of the business (Davidsson & Honig, 2003). Similarly, the goal for Latinx
entrepreneurs is likely to earn more money and have additional flexibility than they could as an
employee, given their education, preferences, and skills. The need to earn more money may be

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offset to some degree by other types of benefits like flexibility and control over the business
process. However, the risk involved with entrepreneurship is often justified by subsequent
economic potential (Pullés, 2020). A study on income suggested that entrepreneurs with
employees earned an average of 22% more than the average individual employed by a company.
Meanwhile, a self-employed person without employees earned over 6% more than the average
employee (Dyoulety et al., 2021). However, Latinx entrepreneurs generally do not always
increase their earning potential compared to similarly positioned employees (Diaz, 2021;
Wescott & Griffth, 2010). It is important to note that studies have found that, on average,
entrepreneurs tend to earn less than employees in their early stages of starting a business (Baum
& Locke, 2004). This is because entrepreneurs often have to invest time, money, and resources
into their ventures before they see a return on their investment (Desai & Wheat, 2007). However,
once a business becomes successful, entrepreneurs can potentially earn significantly more than
employees (Baum & Locke, 2004). Additionally, these studies found that the income of
entrepreneurs can be more volatile and less predictable than that of employees, as success is not
guaranteed and can be influenced by various external factors such as market conditions and
competition (Davidsson & Honig, 2003).
Earning potential is an essential entrepreneurial factor of consideration, as is gender. A
deeper dive into statistics reveals entrepreneurship's more nuanced potential (Dávila et al., 2020).
Two-thirds of Latinx were born in the United States, while the other one-third are immigrants. A
total of 95% of European Americans were born in the U.S. (National Equity Atlas, 2022). U.S.-
born Latinx tend to fare better than foreign-born Latinx (National Equity Atlas, 2022). Whether
foreign-born or born in the U.S., Latinx have a number of disparities when compared to
European Americans.

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While Latinx individuals born in the United States may have a greater average earning
potential as an employee, that is not universally true for all subgroups (Wescott & Griffith,
2010). Despite efforts to increase wage equality between men and women, female employees
have experienced wage stagnation since the early 2000s, which is less present for their male
counterparts (Zambrana et al., 2020). Compared to men, women on average -- Asian women,
European American women, Black women, and Latinas -- experience an enormous gap in wages.
(Zambrana et al., 2020). Meanwhile, opportunities for Latina entrepreneurs have continued to
grow. Latinas own almost 45% of all Latinx-owned businesses, operating over one billion dollars
nationally (Zambrana et al., 2020).
Studies on the earning potential of minority individuals born in the United States show
that they often make more money as employees than entrepreneurs (Wescott & Griffith, 2010).
This information does not suggest that American-born minority individuals do not have the skill
set to succeed as entrepreneurs. It further supports that they often have a good skill set and
education to make them valuable employees in higher-paying technical and informational jobs.
Meanwhile, minority individuals who immigrate to the United States tend to increase their
earning potential by becoming an entrepreneur (Orozco, 2021; Wescott & Griffith, 2010). The
Pew Research Center's 2023 report, 'Racial and Ethnic Wealth Inequality in America,' based on a
nationally representative survey of over 10,000 households, revealed the median household
income for European Americans is above $80,000, while the median household income for
Latinx Americans is just under $40,000 (Pew Research Center, 2023). However, if there were
more structured and accessible pathways for Latinx people, such as targeted resources,
mentorship programs, and financial support, perhaps entrepreneurship within the community
would experience significant growth.

18
In order to increase entrepreneurship among Latinx populations, it is important to
consider effective routes to profitable entrepreneurship both for individuals with high-earning
potential employees and those with limited earning potential as employees who are better suited
to start their small businesses (Harris, 2021). This may require a combination of approaches,
including engaging highly educated Latinx youth looking to explore informational and technical
ventures (Horst & Marion, 2019). Another possibility is exploring local outreach opportunities
for individuals engaged in service-based businesses who may benefit from shared resources,
such as communal commercial kitchens and business support (Horst & Marion, 2019).
When entrepreneurship is born out of necessity, the endeavor's success is influenced by
several individuals, community, and government factors (Matos & Hall, 2020; Sutter et al.,
2019). The characteristics of most successful entrepreneurs are discussed in greater detail below,
but, generally, successful individuals have a combination of educational background, business
experience, and personal capital (Ganguly, 2018). Meanwhile, characteristics outside of the
individual related to the community or government include business requirements, regulations,
and the economic conditions of the area (Matos & Hall, 2020; Wescott & Griffith, 2010). Matos
and Hall (2020) noted that individuals who create business enterprises out of necessity often do
so to meet the most pressing personal day-to-day needs. While starting businesses can create the
prospect of immediate revenue when job opportunities are scarce, undertaking new ventures to
meet immediate needs creates a challenging climate for future success (Ganguly, 2018; Matos &
Hall, 2020; Sutter et al., 2019). While none of these conditions are specific to Latinx individuals,
Latinx entrepreneurs are statistically more likely to have less education and less personal capital
than other races/ethnicities, creating conditions where they are more likely to begin businesses

19
out of necessity which do not necessarily lead to long-term success (Siles & Martinez, 2021;
Unidos, 2020).
Demographic and Geographic Trends in Entrepreneurship
Trends in Latinx are not uniform across all population sub-sectors or geographic
locations because the Latinx population is not a single monolithic group (Carpenter & Loveridge,
2021). Latinx people come from many countries, geographies, and urban classifications
(Carpenter & Loveridge, 2021). This section discusses the trends in Latinx entrepreneurship
related to geography, personal characteristics, access to capital, and education.
Geographic Trends
There is a growing population of Latinx individuals looking for entrepreneurship
opportunities in rural settings (Carpenter & Loveridge, 2021; Horst & Marion, 2019; Munoz &
Spain, 2015). Agricultural jobs have historically been a source of income for recent immigrants
from South American countries, and a small but significant group of Latinx individuals go on to
run agricultural businesses using their personal or generational experience. The entrance of
Latinx business owners is welcome in the agricultural sector, as it is a group that has generally
experienced a significant decline. Carpenter and Loveridge (2021) note that while there have
been significant decreases in non-Latinx individuals residing in rural locations since 2000, the
percentage of Latinx individuals residing in rural locations has increased (Vallejo & Canizales,
2016).
Trends of Latinx entrepreneurship suggest that most individuals prefer to start new
enterprises in urban locations for acceptance, access to amenities, and customer base (Horst &

20
Marion, 2019; Munoz & Spain, 2015). Traditionally, Latinx business ownership has centered
around geographic locations with large populations of Latinx individuals (Smith & Mannon,
2020). This trend is likely related to larger populations of Latinx individuals residing in specific
cities, counties, and states, resulting in more Latinx individuals starting businesses (Smith &
Mannon, 2020). However, the trend in business ownership is likely more complicated than
simple population statistics. Entrepreneurship is influenced by many actual and perceived factors
related to business viability, including interest in the provided goods and services from a strong
customer base. In locations with large Latinx populations, Latinx business owners can benefit
from large customer bases with similar or related cultural backgrounds (Smith & Mannon, 2020).
Additionally, Latinx business owners can benefit from market characteristics, such as
proficiency in the multiple languages used by the local customer population (Smith & Mannon,
2020). However, there are many Latinx-owned businesses outside of Latinx urban communities.
Even in areas where large Latinx communities do not emerge, Latinx businesses can play
an essential role in supporting the economy as new market offerings (Carpenter & Loveridge,
2021; Smith & Mannon, 2020). Among new business owners, Latinx individuals represent a
significant portion of the population despite being underrepresented compared to the rest of the
population (Fairlie et al., 2020; Smith & Mannon, 2020). Communities undergoing population
changes, especially those with historically declining populations, can benefit from new
businesses which provide critical neighborhood services (Smith & Mannon, 2020). In addition to
variances in geography, there are trends related to the personal characteristics of Latinx
entrepreneurs.
Personal Characteristics

21
Understanding the internal characteristics is relevant when considering how to foster
entrepreneurship in young people (Vallejo & Canizales, 2016). While many external factors
influence entrepreneurship, some internal characteristics also influence entrepreneurial
tendencies and can be fostered in youth (Oreen, 2020). Seminal research on entrepreneurial
characteristics suggests that individuals who run businesses have greater locus-of-control beliefs
or a stronger sense that their behavior and choices are responsible for the consequences or results
(Rotter, 1966).However, this finding does not fully account for how socioeconomic factors shape
an individual's perception of control over their life or the variations in how these socioeconomic
influences contribute to diverse social and economic outcomes. However, it does suggest that
greater degrees of self-efficacy are beneficial for entrepreneurial intention (Johnson, 2020).
Additionally, McClelland (1961) suggested that some individuals have a greater need for
validation through achievement, which leads to a higher drive for activities that society holds in
high regard, like business ownership. Finally, the risk-taking propensity is a critical component
of entrepreneurial intention because starting a new business always requires some degree of risktaking, as an economic return is never guaranteed (Kogan & Wallach, 1960).
Generally, individuals interested in entrepreneurship have some degree of innovation as a
personal characteristic (Frisch et al., 2020; Zahariadis & Exadaktylos, 2016). Innovation begins
with a combination of knowledge and creativity related to business processes (Frisch et al.,
2020). Entrepreneurship typically requires a willingness and ability to invest personal and
financial resources in pursuing an idea (Frisch et al., 2020). In addition to creative thinking
related to goods and services, individuals with entrepreneurial characteristics can demonstrate
creativity related to business policies or processes which optimize production or service
provision strategies (Schön-Quinlivan & Scipioni, 2017). Characteristics that enable

22
entrepreneurship are innovation, initiative, risk tolerance, taking risks, good communication
skills, creativity and self-confidence, proactivity, recognizing opportunities, implementation
plan, and swift and rational decision-making abilities (Kickul & Lyons, 2020; Hisrich &
Ramadani, 2017).
Access to Capital and Education
Both access to capital to start a business and education play an important part in
entrepreneurship. This section will discuss entrepreneurship concerning the importance of having
access to capital to begin a new business. In addition, it appears that education is a significant
factor in attitude toward entrepreneurship.
Johnson (2020) noted that external characteristics such as access to capital and education
impact business ownership. Another external characteristic is the country a person lives in and
their education system (Sahasranamam & Nandakumar, 2020). A Sweden study showed that
higher education levels led to greater civic engagement (Kachlami et al., 2018). Civic
engagement and entrepreneurship are related in the sense that both involve taking action to
improve one’s community or address societal issues (Ewert & Lengnick-Hall, 2011).
Entrepreneurship is about creating and implementing new and innovative solutions for economic,
social, and cultural problems, while civic engagement refers to active participation in public life
and working to improve the community (Mair & Marti, 2006). Both require a drive to bring
about positive change, creativity, and determination (Mazzarol & Volker, 2008). Thus, the
implication is that social enterprises gain legitimacy and external resources in countries with
higher levels of education as the education systems tend to enhance investments in social
entrepreneurship. Education and successful entrepreneurial ventures have a positive correlation,

23
as a quality education can play a significant role in the success of an entrepreneurial venture
(Baum & Locke, 2004). Education can provide individuals with the knowledge, skills, and
networks necessary to identify and pursue opportunities, as well as the ability to manage and
grow a business(Desai & Wheat, 2007; Davidsson & Honig, 2003). Therefore, a reason may be
that education quality can consist of learning entrepreneurship skills needed to begin a new
business (Kachlami et al., 2018). Higher education that includes skills entrepreneurship models
has also been shown to change attitudes about entrepreneurship and give them the skills and
motivation to develop entrepreneurial careers (Boldureanu et al., 2020). Gupta et al. (2020)
conducted a comprehensive review of social entrepreneurship research, providing insights into
the current state of the field and outlining a future research agenda. The study focused on
research conducted in developed countries, offering valuable perspectives and areas for future
exploration in this context (Gupta et al., 2020). However, nearly all studies reviewed by Gupta et
al. (2020) in their comprehensive examination of social entrepreneurship research were
conducted in developed countries instead of developing countries, providing a specific focus on
insights and trends within this context.
When considering supporting entrepreneurial ambition in Latinx youth, it is crucial to
balance efforts to increase or level both internal and external characteristics (Johnson, 2020;
Theodos et al., 2021; Vallejo & Canizales, 2016). Though internal factors can influence
entrepreneurship, external challenges can discourage otherwise qualified individuals from
pursuing business ownership.

24
Challenges of Entrepreneurship
Several challenges influence the rates of Latinx entrepreneurs. The challenges relate to
perceptions of business ownership (Orozco, 2021), access to capital (Santellano, 2021), and
lower education levels (Garnham, 2020). The challenges that influence Latinx entrepreneurship
are summarized in the section below.
Perceptions
Latinx individuals have demonstrated great entrepreneurial and academic success, but
some perceptions persist among the Latinx population, making entrepreneurial ventures
challenging for interested individuals (Orozco, 2021). Among many of the Latinx population,
entrepreneurship is perceived to be risky, resulting in serious economic consequences and loss
(Orozco, 2021). Though this perception could be true, new enterprises do not always succeed,
and risk perception is greater among the Latinx population than among European American nonLatinx peers (Brown & Consuegra, 2019). Factors that influence this perception are likely
justified, including less access to affordable capital, less familial ability to serve as a safety net,
and decreased support from investors compared to European American non-Latinx individuals
(Orozco, 2021). Addressing the challenges resulting in this negative perception is as important as
addressing the perception of risk imbalance in Latinx youth and Latinx adults interested in
operating and launching a new business (Orozco, 2021).
Undertaking new business ventures requires a degree of financial literacy and the
individual perception that they can successfully manage personal and business finances
(Doering-White et al., 2021). Latinx individuals are more likely to struggle with financial
literacy than European American households, impacting their perceptions of entrepreneurship.

25
Though some of these perceptions can and should be addressed, Doering-White et al. (2021)
cautioned that the solution to perceptions of financial illiteracy is not to encourage Latinx
individuals to open riskier ventures which are unlikely to increase the economic security of the
family. Relatedly, access to capital can influence business ownership.
Access To Capital
A significant challenge for Latinx entrepreneurship is access to capital (Santellano,
2021). Historically, minority Americans have struggled to access equitable bank loans and
private capital due to discrimination or racism (Orozco & Perez, 2020). Though the United States
has taken steps to address the blatant racism and discrimination experienced by minority
entrepreneurs regarding access to borrowed capital, it remains a challenge for new business
owners (Santellano, 2021). Even when there are possible pathways open for Latinx entrepreneurs
to secure funding, many struggles with the perceptions related to capital access that support
beliefs that capital is not available to them, that they aren't qualified to receive it, and that there is
nobody in their social network able to help them navigate the capital acquisition process (Orozco
& Perez, 2020).
Without access to loaned capital, Latinx entrepreneurs are required to rely on credit
cards, personal finances, and finances borrowed from social networks (Fairlie et al., 2020). This
condition is challenging from a practical standpoint because individuals may not be able to raise
sufficient capital (Fairlie et al., 2020; Santellano, 2021). This results in operational disparities
between many Latinx businesses and similar businesses owned by European Americans who
were able to borrow needed capital to enhance early operations. At a personal level, Latinx
business owners who expend significant portions of personal capital and capital borrowed from

26
social connections may perceive enhanced risk in entrepreneurship, which could compromise
their families' financial security (Fairlie et al., 2020; Santellano, 2021).
Many Latinx families do not have the financial security to expend large quantities of
personal capital on new business ventures (Fairlie et al., 2020). In 2019, European American
families had five times more wealth than the average Latin American family (Doering-White et
al., 2021). Other financial statistics suggest similar disparities for Latinx and other minority
households. For example, more than 50% of European American households had a credit score
greater than 700, while only 22% of minority households had a credit that was considered
“good” or “excellent” (Gentner & Wible, 2015). Furthermore, Black and Latinx households were
twice as likely not to have any visible credit history, which seriously impacts household
borrowing power related to new business enterprises (Doering-White et al., 2021).
Early funding deficiency translates to ongoing business operational disparities
(Santellano, 2021). When businesses lack capital in early operations, it can be more challenging
to develop best practices and conditions likely to acquire a customer base and brand loyalty. Data
from the American Community Survey 2011-2015 found that Latinx business owners achieved
less income across all industries than European Americans, despite operating similar businesses
(Pollard & Jacobsen, 2017). Fairlie et al. (2021) attribute this disparity in business profitability to
a lack of access to early capital, which suppressed business functionality.
Lower levels of saved capital make it challenging for Latinx-owned businesses to
determine whether unexpected changes in business operations or the economy result in lower
revenues (Fairlie et al., 2021; Theodos et al., 2021). An important metric in business security is
cash on hand, or the amount of capital a business has saved to operate through periods of slow

27
revenue. Approximately 35% of businesses in majority-White neighborhoods have sufficient
cash to support their business for two weeks without revenue (Farell et al., 2019). Meanwhile,
90% of businesses in majority-Latino or majority-Black neighborhoods have less than two weeks
of stored capital (Farell et al., 2019). The cash disparity on hand was particularly evident during
the COVID-19 pandemic, when many Black or Latinx-owned businesses struggled to remain
solvent during shelter-in-place orders and commerce restrictions (Farell et al., 2019; Theodos et
al., 2021).
Cash-on-hand shortages impact business operations, even during good economic times
(Farell et al., 2019). Some business opportunities, such as working for the government in a
service provider or contracting role, require the ability to provide services or procure goods up
front, with payment coming after a month or more (Theodos et al., 2021). Such contracts can be
lucrative and supply steady revenue to local small businesses. However, without the ability to
front the goods and services, many minority-owned businesses are unable to compete for
lucrative contracts (Farell et al., 2019; Theodos et al., 2021).
Lower Educational and Age Levels
Though no specific level of education is required for entrepreneurship or successful
entrepreneurial ventures (Pullés, 2020), owning a business requires skills and management
abilities that can be obtained through higher educational attainment (Pullés, 2020). Numerous
factors contribute to the lower educational attainment levels of Latinx (Hondageu-Sotelo et al.,
2020).
Other factors relate to the practical attributes of the Latinx community, such as a lower
overall age (Hondageu-Sotelo et al., 2020: Lopez et al., 2018). As of 2016, 61% of the Latinx

28
population was under 35. More than 81% of these individuals, who were born in the United
States, have equal access to public educational opportunities, just like their European American
counterparts. As this population ages, educational achievement is likely to increase.
Hondague-Sotelo et al. (2020) noted that Latinx in the Millennial Generation and
Generation Z are likely to achieve higher educational levels than their parents. However, the
relative youth of the population does not account for educational disparities in the Latinx
population (Fairlie et al., 2020). Though these challenges can make entrepreneurship difficult in
the Latinx community, various methods can improve entrepreneurial outcomes and encourage
business ownership.
Fostering Entrepreneurship
General approaches for increasing entrepreneurship can provide important background
information on addressing lower rates of entrepreneurship in the Latinx compared to most of the
population (Hondagneu-Sotelo et al., 2020). The following section relates to strategies for
fostering entrepreneurship, including teaching entrepreneurship through educational programs
and taking societal approaches for increasing entrepreneurship through a combination of funding
opportunities and shared resources (Ahmad et al., 2018; Fischer et al., 2021; Sukavejworakit et
al., 2021; Olokundun et al., 2018).
Teaching Entrepreneurship
Teaching and learning entrepreneurship skills can help them be successful. Over 50% of
entrepreneurs achieved a bachelor's degree (Fischer et al., 2021). Since most entrepreneurs have
educated backgrounds, higher education institutions must focus on producing students who are

29
prepared to run businesses or significantly contribute to the management of existing enterprises
(Fischer et al., 2021). Entrepreneurship is a very broad activity that encompasses the running of
businesses that span across all sectors and require a vast quantity of technical knowledge.
Providing students with sector-specific knowledge prepares them for certain types of jobs, so
most general entrepreneurial programs include a mixture of theoretical knowledge and hands-on
experience applicable to many sectors (Ahmad et al., 2018; Fischer et al., 2021; Olokundun et
al., 2018). Literature on entrepreneurial educational programs includes information about the
efficacy of experiential learning in teaching future business leaders how to succeed (Ahmad et
al., 2018; Fisher et al., 2021; Sukavejworakit et al., 2021; Olokundun et al., 2018).
Though the topic of entrepreneurship has been covered in great detail, teaching students
entrepreneurship is less understood (Nabi et al., 2017; Neck & Corbett, 2018). The research that
does exist about teaching entrepreneurship suggests that it requires a combination of approaches
that focus on building entrepreneurial mindsets, teaching the hard skills necessary for business
management, and practical experience related to business development and management (Neck
& Corbett, 2018). Rather than educating students on hard skills required by science, technology,
engineering, and math (STEM) disciplines or building writing and research abilities required by
the soft sciences, many educational programs for entrepreneurship focus on building selfefficacy (Liu et al., 2022; Ramalho et al., 2022). Others operate much like a start-up incubator,
where students work on constructing the foundational elements necessary for starting a new
business (Nabi et al., 2017; Neck & Corbett, 2018).
The role of education in entrepreneurship includes giving students the core skills
necessary to succeed in business, like math and basic accounting. Educators play a role in
entrepreneurship by teaching students critical thinking and increasing self-efficacy (Neck &

30
Corbett, 2018; Ramalho et al., 2022; Samuel & Rahman, 2018). Additionally, higher education
teachers can guide students through business start-up operations, modeling entrepreneurial
behavior, challenging preconceived notions, mentorship, and experience facilitation (Neck &
Corbett, 2018).
Many activities valuable to entrepreneurship occur through many courses of study rather
than those exclusively focused on entrepreneurship. For example, high school and general
education courses at the university level can improve a student's critical thinking and selfefficacy. Courses designed with an incubator framework or courses specifically on accounting,
business management, and entrepreneurship are typically experienced through a business-centric
study focus (Neck & Corbett, 2018; Samuel & Rahman, 2018).
Understanding how best to teach entrepreneurship is an ongoing research question
(Ahmad et al., 2018; Samuel & Rahman, 2018; Neck & Corbett, 2018). Many entrepreneurial
programs have multiple aims, including preparing students to operate their businesses while
educating students for roles in business management for established enterprises (Ahmad et al.,
2018). In developing high-quality entrepreneurial programs, it is critical to understand the
primary aims of the program and ensure that coursework focuses on helping students reach those
goals within the larger context of an education designed to help them succeed in business. For
example, many business courses are designed to teach students functions related to accounting or
human resources (Ahmad et al., 2018). While a basic understanding of those functions is vital for
entrepreneurs, the educational requirements for an individual interested in pursuing a career in
human resources focus on helping students succeed at working for others. In contrast, many
students entering entrepreneurial programs intend to work for themselves. Therefore, creating

31
programs to teach the skills required for entrepreneurship successfully may be different (Ahmad
et al., 2018).
Unfortunately, the literature suggests that there may be a mismatch between the skills
taught in most university settings and those helpful to students starting their own business
enterprises (Ahmad et al., 2018; Samuel & Rahman, 2018). Training entrepreneurs requires a
combination of hands-on learning and theoretical knowledge that has historically been
challenging for educational programs to pinpoint. Vocational schools and incubators tend to
focus on hands-on skills, while university coursework focuses on foundational knowledge, which
builds critical thinking (Ahmad et al., 2018; Liguori & Winkler, 2020). Educational programs
must combine both to successfully support future entrepreneurs (Ahmad et al., 2018). Ahmad et
al. (2018) concluded a study of entrepreneurial programs and found that the programs covered
such a broad range of topics that the end goal of successfully operating a business was not
evident in the course structure.
For most entrepreneur programs, experiential learning and opportunity evaluation play an
important role (Olokundun et al., 2018; Sukavejworakit et al., 2018). While knowledge-based
elements of programs provide important foundational knowledge and critical skill building,
entrepreneurial activity and intention require preparation for action and thought (Ahmad et al.,
2018). The stages included in opportunity evaluation models include (1) industry analysis, (2)
market analysis, (3) product/service analysis, (4) competitor analysis, (5) financial analysis, and
(6) operation and team analysis. Activities based on real-world learning, like case studies,
experiential learning, and internships, have higher educational value for students learning
practical skills. Additionally, experiential learning significantly increases student entrepreneurial
intention (Sukavejworakit et al., 2018).

32
Part of the benefit of experiential learning techniques in teaching entrepreneurship is that
it focuses on active participation in education (Olokundun et al., 2018; Sukavejworakit et al.,
2018). Many programs that focus on business theory support students in developing a strong
theoretical basis, but do not prepare them for the challenging realities of actively pursuing
entrepreneurial success (Olokundun et al., 2018). A study of 600 students from four universities
suggested that programs which focus on experiential learning and include practical activities in
the curriculum are more successful at teaching entrepreneurship and motivating entrepreneurial
intention than programs that focus on theoretical business understanding (Olokundun et al.,
2018).
A challenge in developing entrepreneurship programs is finding educators who can
provide real-world business knowledge with the skills to successfully educate and manage a
classroom of upper-level adult students (Ahmad et al., 2018; Hua & Ren, 2020). In much of the
educational system, professors are individuals with largely academic backgrounds who received
education with the expectation of conducting research and teaching students. While
entrepreneurship programs require individuals with refined teaching abilities, they also demand
experience, which is largely acquired through business activities that are foreign to many
professional educators (Fischer et al., 2021; Hua & Ren, 2020). In addition, skills that are
practical and relevant to entrepreneurship change rapidly as new types of business management
come into play and industries refine their processes and expectations. To balance the need for
high-quality teachers with practical experiences, Hua and Ren (2020) recommended that
professors of entrepreneurship programs include case-based or experiential learning techniques
in classroom education to stay current on the latest techniques and ground their theoretical
knowledge in real-world applicability.

33
Other methods for supporting teachers to provide strong entrepreneurial education
experiences include training for the educators themselves (Liguori & Winkler, 2020; Toding &
Venesaar, 2018). Due to the fast-paced nature of the business world, adaptation is a crucial
quality in teachers focused on entrepreneurial education (Hua & Ren, 2020; Toding & Venesaar,
2018). Typically, educators who are focused on interactive learning for themselves and their
students are better able to adapt to changes in the business environment and incorporate new
lessons and information into their curriculum (Toding & Venesarr, 2018). However, an
examination of entrepreneurial scholarship in higher education institutions often indicates that
many professors do not adapt their lesson plans to reflect the changing business environment,
highlighting the need for reforming entrepreneurial educational programs (Toding & Venesarr,
2018).
Beyond incorporating experiential learning and case studies into entrepreneurial
education, focusing on teaching students critical skills required for the entrepreneurial process
can positively affect student outcomes (Jones, 2018; Linton & Klinton, 2019). Creativity is a
crucial skill to entrepreneurship, as creating a successful business in a rapidly changing world
often requires creative thinking and innovation (Linton & Klinton, 2019). Teaching students to
think creatively can be critical to the success of entrepreneurial intention because it prepares
students to design new products, test new processes, and solve problems. Other skills critical to
entrepreneurship include soft skills, such as communication, cooperation, team management, and
leadership abilities (Jones, 2018; Linton & Klinton, 2019). Innovation is another skill needed for
entrepreneurship.
Innovation is a skill related to creativity and is crucial for entrepreneurship and
maintaining a competitive advantage (Androutsos & Brinia, 2019; Jones, 2018; Linton &

34
Klinton, 2019). Strategies for teaching innovation are still in development and under
consideration by recent literature. Although teaching innovation does not begin in higher
education institutions, as young children develop innovation and experimentation through early
learning activities, higher education can foster innovation (Androutsos & Brinia, 2019; Seyfried
et al., 2019). Teaching innovation can be facilitated by incorporating new methods into
classroom education and encouraging students to think creatively when completing their
assignments. Practically ensuring core competencies such as digital literacy and research
experience help foster innovation and make innovative ideas practicable in a start-up or business
environment (Androutsos & Brinia, 2019).
Other considerations for entrepreneurship educational programs include preparing
students for the globalized business environment and international interactions (Musteen et al.,
2018). Though most registered enterprises in the United States do not have international
customer bases, increased globalization, international shipping, advanced communication tools,
and overseas manufacturing make it likely that many entrepreneurs will contact businesspeople
from other countries (Shadiev & Dang, 2022). Preparing students for international interactions
requires teaching elements such as clear communication and cultural competency. Strategies for
preparing students for the international nature of business include planned interactions with
international students interested in similar topics and incorporating lessons about international
commerce into the traditional entrepreneurial curriculum (O’Connor, 2014). Additionally,
students should be prepared to evaluate business opportunities from various perspectives and
lenses, including international considerations (Musteen et al., 2018).
Though educational pathways to entrepreneurship are often undertaken separately from
new business start-ups and incubator activities, there are opportunities for connecting academic

35
innovation and research to business opportunities (Del Bosco et al., 2019; Markin et al., 2017).
Academic research can generate significant business opportunities, but researchers and
academics are often not well-positioned to take on the role of start-up entrepreneurs without
additional support (Schmitz et al., 2017). To go from research to an idea generated through
academia, entrepreneurs must identify opportunities, acquire and deploy resources, and
demonstrate a capacity for running a legitimate business enterprise (Olugbola, 2017). Options for
partnerships between private equity or management firms and academics exist, including the
relatively new concept of “enterprise factories” (Del Bosco et al., 2019).
Enterprise factories differ from incubators or venture capital firms because they provide
significant capital and managerial experience for start-up concepts in exchange for a managing
stakeholder share (Schmitz et al., 2017). For academics without significant interest in
transferring into a business management role, this can be an excellent opportunity to generate
income from an innovative idea without having to expend all their own time and capital to run
the venture (Del Bosco et al., 2019). In conjunction with academic settings, enterprise factories
can benefit professional academics, researchers, and students positively. When considering
options for moving business ideas from an academic exercise into a real-world venture,
entrepreneurs should consider the role they want to play in the future business and determine if
venture capital funding, incubators, or enterprise factories provide the most significant
opportunity for personal and financial success (Olugbola, 2017; Markin et al., 2017).
Opportunities for academic entrepreneurship for students or professionals are not evenly
distributed across all academic disciplines (Mõttus et al., 2019; Olugbola, 2017; Markin et al.,
2017). While educational incubators and research activities can lead to a wide variety of business
opportunities across social and physical science disciplines, individuals in the science field are

36
statistically more likely to enter into entrepreneurial enterprises based on their academic
activities (Mõttus et al., 2019). Additionally, when considering business opportunities and an
allocation of funding, professors are more likely to generate meaningful business opportunities
than students, at least in terms of university stake in the end product (Mõttus et al., 2019;
Schmitz et al., 2017). In addition to directly teaching entrepreneurship to students in a higher
education setting, entrepreneurship can be fostered at a societal level by overcoming barriers and
creating opportunity pathways (Chepurenko & Kristalova, 2019; Neumeyer et al., 2020).
Though there are many methods for fostering entrepreneurship in populations and
subgroups, early education plays a critical role in later success (Amende et al., 2021). Studies
suggest that individuals with early positive educational experiences and exposure to business
opportunities are more likely to become entrepreneurs later in life (Garham, 2020; Joanino,
2021). Closing educational gaps is a critical component of fostering Latinx entrepreneurship, but
more targeted approaches have also been shown to positively impact the community (Amende et
al., 2021; Joanino, 2021).
Youth entrepreneurship programs have been shown to teach students critical life skills,
such as commitment, self-efficacy, self-esteem, leadership, and collaboration skills (Klein,
2019). Some entrepreneurship programs include hands-on work experience, mentoring, seed
funding, incubators, internships, business pitch competitions, and guest speakers (Klein, 2019).
Some programs include wraparound support such as housing, case management, work readiness
training, and skill-development opportunities (Klein, 2019).
When entrepreneurship programs have culturally targeted elements, the positive impacts
for Latinx youth increase (Amende et al., 2021; Joanino, 2021); researchers have found that

37
positive mentorship and example-setting from Latinx business owners increase the ambition of
Latinx youth to pursue a high-quality education, attend higher education institutions, and start
businesses later in life (Amende et al., 2021; Horst & Marion, 2019; Joanino, 2021).
There is a close connection between entrepreneurship and education, as individuals with
higher levels of education have a greater perceived capacity to run a business and higher levels
of self-efficacy and start-up capital to begin a new enterprise (Amende et al., 2021; Joanino,
2021). School entrepreneurship programs cannot address all the educational disparities between
Latinx youth and European American youth, but they can foster greater interest in
entrepreneurship and a greater understanding of the educational background helpful to business
success (Harris, 2021; Klein, 2019). Fostering Latinx and other minority youth interest in
business can occur through dedicated programs or by including Latinx individuals among school
leadership to model career success to youth (Klein, 2019).
Successful programs model Latinx and other minority leadership and encourage
community involvement and student leadership. Harris (2021) notes that entrepreneurial school
programs are essential because many Latinx students are not surrounded by successful Latinx
business ownership models and may not have been raised in family circumstances that modeled,
encouraged, and expected leadership positions in the workforce. By creating an environment
where Latinx business achievement is normalized and expected, the school-based entrepreneurial
programs create conditions where students are more likely to aspire to business ownership
(Carpenter & Loveridge, 2021; Joanino, 2021).
Colleges and universities have a significant role in encouraging and supporting Latinx
entrepreneurship, despite the risks associated with high tuition expenses and burdensome

38
educational debt (Gonul, 2018). Recently, higher education programs have developed elements
such as traditional post-graduation incubators modeled through the tech and investment sectors
(Doering-White et al., 2021). Combined with a traditional classroom environment, educational
incubators provide both the theoretical and practical knowledge required for business success
and allow students to further their business ambitions while gaining an education (Gonul, 2018).
Unlike most traditional incubators, which operate with a meritocracy that overlooks disparities in
applicants' social and educational backgrounds, college and university-based incubators can
target Latinx and other minority applicants (Gonul, 2018).
Like community-based programs, school-based programs focus on leveling the playing
field for minority students compared to their European American peers (Oyer, 2020). School
incubators can help to close educational gaps, build self-efficacy, develop business
understanding, and increase student networks (Perez, 2018). These activities address the barriers
to entrepreneurship discussed in the previous section and increase the likelihood that students
will feel prepared for business ownership and succeed in their ventures (Gonul, 2018).
Societal Pathways
Societal pathways for entrepreneurship are significant for low-income communities and
other communities with limited access to higher education opportunities. The skills necessary for
entrepreneurship vary depending on the scale of the venture. For example, international
entrepreneurship abilities may be critical for individuals looking to begin a science or
technology-based venture with a potential international scope. Meanwhile, individuals seeking
entrepreneurial opportunities as a pathway out of poverty may immediately benefit from
increased practical skills, like technological competency (Neumeyer et al., 2020). Currently,

39
there are gaps in the literature regarding how to improve technological competency in lowincome communities. Much of the existing literature focuses on developing countries, while
limited access to technology remains a problem within many communities in the United States
(Neumeyer et al., 2020).
A significant barrier to entrepreneurship, particularly for individuals with little starting
capital, is access to spaces for product development and manufacturing (Bergman & McMullen,
2020; Gowami et al., 2018). Much of the manufacturing for products sold in the United States is
conducted overseas. While individual products may be produced at lower cost internationally,
most international manufacturers have minimum product orders. Meanwhile, technical
challenges for individuals looking to manufacture goods internationally must be overcome
(Bergman & McMullen, 2020; Ensign & Leupold, 2019; Goswami et al., 2018). To address
supply chain challenges, an option for encouraging entrepreneurship is to create shared spaces
for manufacturing goods. New technological innovations make it possible for manufacturing
processes to be adapted for producing many goods, making shared facilities more realistic for
small business owners. Producing goods requires significant infrastructure investment like saws,
drills, 3D printers, laser cutters, and many other products. For first-time entrepreneurs,
purchasing and storing these items is cost-prohibitive, but accessing shared facilities can be a
realistic alternative for first-time business owners (Bergman & McMullen, 2020; Browder et al.,
2019; Goswami et al., 2018)
Access to capital is critical for entrepreneurs, as starting business operations and
expenditures are necessary before generating revenue (Moro et al., 2020). There are significant
disparities in access to capital based on race, gender, nativity, and age, which is a critical issue
for equitable entrepreneurial opportunities (Moro et al., 2020). Governments can play a role in

40
increasing first-time, low-income entrepreneurial access to capital. Governments can increase
access to capital through several means, including tax credits, loans, and subsidies. Other options
include stimulating access to capital by reducing entrepreneurs' lending risk through dedicated
programs (Ensign & Leupold, 2019; Joanino, 2021; Moro et al., 2020). In a study of almost
20,000 lending applications by entrepreneurs, Moro et al. (2020) found that government
initiatives significantly increased the likelihood that an individual or small business would be
approved for credit.
Though government programs can be beneficial for entrepreneurs in all fields, the
programs were most beneficial for smaller and newer enterprises, with a bias towards ventures
with the potential for high growth based on innovative or novel offerings (Goswami et al., 2018;
Moro et al., 2020). While these programs have the potential to benefit many entrepreneurs, the
bias towards high-growth offerings suggests that they might be most beneficial for individuals
with higher education levels following a start-up model rather than enterprises that arise as a
means to get individuals and families out of poverty (Moro et al., 2020).
As previously suggested, the type of enterprise can significantly influence the support
mechanisms most helpful for business development (Moro et al., 2020; Su & Zarea, 2020). An
important distinction between business types is businesses that provide goods and services
primarily to local customers compared with businesses with international potential (Goswami et
al., 2018; Moro et al., 2020). Enterprises that rely on knowledge are more inclined to operate
internationally, considering both the applicability of their expertise and the challenges associated
with delivering services on a global scale (Goswami et al., 2018; Moro et al., 2020). For
example, businesses focused on providing services such as construction, house cleaning, and hair
cutting are likely facilitated with greater simplicity on a local level, as there are fewer barriers to

41
entry and many people are capable of providing the service (Su & Zarea, 2020). Meanwhile,
science and technology firms with significant research and development activities are more
likely to have an international scope (Su & Zarea, 2020).
Similarly, many creative industries have international applicability as their goods easily
reach international customers (Su & Zarea, 2020). Creative industries have an opportunity to
provide crucial economic activity to both developed and developing countries and are of interest
to young knowledge workers (Moro et al., 2020; Su & Zarea, 2020). Fostering creative industries
requires countries to develop supportive policies that protect creativity's profitability. A critical
component of success in creative industries is support for creative workers through education
and grants and legal protections for intellectual property (Joanino, 2021; Khajeheian et al., 2018;
Su & Zarea, 2020). Governments can support creative industries using several models which can
occur singularly and in combination. Examples of models for supporting creative industries
include welfare models, which focus on providing creative workers with subsidies or grants, and
growth models, which focus on stimulating private investment in the arts and creative industries
(Su & Zarea, 2020). While these strategies focus on fostering entrepreneurship, other strategies
are necessary to support Latinx businesses once they emerge (Neck & Corbett, 2018).
Supporting Latinx Businesses
Fostering entrepreneurship among the Latinx community can be done by increasing
interest in business ownership at a general level or making entrepreneurship profitable for
individuals who are already interested (Neck & Corbett, 2018; Wescott & Griffith, 2010). This
section discusses options for stimulating Latinx businesses, thus increasing the likelihood that
Latinx individuals will seek entrepreneurship opportunities. Included strategies are community

42
support mechanisms (Lopez et al., 2018; Orozco & Pisani, 2020), government public purpose
programs (Orozco & Pisani, 2020; Santellano, 2021), and others.
Community Support
A simple and direct way to support Latinx businesses is to purchase their goods and
services (Lopez et al., 2018). When community members frequent stores and services operated
by business owners living locally, they support the income of individuals in their community.
The community's support is especially true of minority-owned businesses, which are more likely
to be small and without a national or international presence (Mazzelli & Nason, 2019). While
anyone can support locally-owned minority businesses, Moran (2021) notes that the purchasing
power of the Latinx community is rapidly increasing.
Latinx consumers are well positioned to support Latinx businesses, as they are more
likely to share preferred language communication and cultural characteristics influencing
commerce habits (Moran, 2021). Currently, one in five Americans is Latinx; by 2060, one in
three will likely be Latinx (U.S. Census Bureau, 2022). Moran (2021) notes that Latinx will
represent a larger minority population than any other in the history of the United States, and
White-European Americans will no longer be the majority population. While population
numbers alone will not address business disparities between Latinx and European Americans, the
population of Latinx consumers will continue to grow and could serve as a powerful supportive
force for Latinx-owned businesses (Moran, 2021). Moran (2021) notes that reducing disparities
for Latinx business owners related to access to capital and other challenges will have powerful
protective ramifications for the United States economy as Latinx business owners play an
increasingly prominent role in American economic activity. As positive benefits accrue for the

43
economy from Latinx businesses, there is a business case to be made for governments funding
public-purpose programs related to Latinx entrepreneurship.
Government Public Purpose Programs
While encouraging entrepreneurial intention is an essential step in increasing the number
of businesses owned by Latinx proprietors (Pullés, 2020), ensuring adequate support for
businesses once they are operational is critical to changing the perceptions of young Latinx
considering business ownership (Moro et al., 2020; Santellano, 2021). Latinx and other minorityowned businesses are often at greater risk in challenging social or economic times, but
government programs can provide helpful assistance in maintaining businesses through market
fluctuations (Ensign & Leupold, 2019; Santellano, 2021). However, programs designed to
support small businesses generally and support businesses like those owned by minorities in
disadvantaged or economically struggling communities are sometimes redirected to large
corporations, which may not need government intervention (Santellano, 2021).
The COVID-19 pandemic was highly challenging for small businesses and individuals.
The U.S. government piloted small business programs to protect the payroll of organizations that
might otherwise have been required to lay off employees who needed the paycheck to support
their families (Santellano, 2021). While the program was designed with positive intentions, an
assessment of the program determined that a large portion of the funding went towards
businesses that were unlikely to close during the pandemic, while businesses owned by Latinx
and Black Americans were frequently denied access to funding (Flitter, 2020; Unidos, 2020).
Only 12% of the businesses owned by Latinx and Black Americans received funding before the
program ran out, and another 26% received only a portion of the funding they requested (Flitter,

44
2020; Unidos, 2020). Between February and April 2020, the number of Latinx-owned businesses
declined by 32%, compared to only 17% of European American-owned businesses (Flitter, 2020;
Santellano, 2021; Unidos, 2020).
In most cases, the public purpose programs are likely not designed to exclude small
business owners, but that effect arises from several operational circumstances (Santellano, 2021).
Navigating the application process for government-supported funding can be very challenging
for small businesses which do not have full-time lawyers on staff (Santellano, 2021). Small
businesses are broad in the United States, including operations owned by a single proprietor
serving a low-income population and companies with millions in annual revenue (Garnham,
2020; Fairlie et al., 2020). While both types of businesses may be small compared to
international chains like Walmart or Johnson and Johnson, their resources are very different.
Santellano (2021) noted that successfully applying to government programs can be
challenging for Latinx small business owners, resulting in the larger “small businesses” gaining
access to most of the capital. For public purpose programs to successfully support Latinx
entrepreneurs, recommendations for improving practice include setting aside funding for,
definitively speaking, small operations, simplifying the application process, and giving small
business owners assistance from staff lawyers to complete the application process (Gamboa,
2020; Santellano, 2021). While government-run programs help support businesses, other
strategies include community-based programs.
Community-Based Organizations and Grants
Charitable grants through public foundations are another vehicle for supporting Latinx
and minority-owned businesses (Theodos et al., 2021). An example of a charitable foundation

45
working to support Latinx businesses is the NALCAB-Kellogg Building Equitable Communities
through the Place-Based Investment Program. The program offered grants of $40,000 to
culturally relevant businesses in targeted communities. Other community-based organizations
which provide funding, development services, or micro-incubation services include the Hacienda
Community Development Corporation and the Franklin Neighborhood Development
Corporation. Such agencies often have community ties and can provide targeted services to
businesses in specific communities (Theodos et al., 2021).
Community-based organizations can ease some of the challenges for entrepreneurs
related to funding, educational needs, access to utility space, or connections to an educated
workforce (Moran, 2021; Theodos et al., 2021). These organizations can address some of the
barriers to Latinx entrepreneurship discussed above and help to level the playing field compared
to businesses started by European Americans. By providing targeted technical assistance to
aspiring entrepreneurs, community-based organizations can improve the educational
understanding of entrepreneurs and assist with navigating the business environment. The services
provided include accounting courses, management courses, and access to shared resources like
commercial kitchens with fees on a sliding scale. Such shared resources are beneficial in
kickstarting Latinx business enterprises, as many entrepreneurs do not have access to the capital
required to rent and operate commercial kitchen space, which meets local code requirements for
operation (Medina & Schneider, 2018; Theodos et al., 2021).
Community-based organizations provide academic opportunities to Latinx and other
minority young adults interested in business ownership (Theodos et al., 2021). As previously
mentioned, lower education levels impact Latinx individuals interested in business ownership,
affecting their perceived and actual ability to successfully manage business ownership's

46
financial, technical, and managerial responsibilities. Community-based organizations can
provide educational opportunities to young adults and other individuals interested in
entrepreneurship without requiring the high fees associated with higher education courses
(Theodos et al., 2021). Additionally, technological business innovation, such as entrepreneurship
and capitalization on the internet, can increase business success for Latinx individuals.
Internet Entrepreneurship
Increased internet access and utilization have changed how many businesses operate and
created new opportunities for entrepreneurship without the financial burden of physical locations
for customer experiences (Bahcecik et al., 2019). Monitoring and adjusting to changes in the
business environment has always been an important activity for entrepreneurs, and the rapid
increase of Internet and communication technology is perhaps the most substantial change of the
21st century (Yildirim & Başer, 2016). Electronic commerce has become commonplace, and
businesses can operate successfully without any physical retail presence or brick-and-mortar
location for service provision. In addition to being an important development for existing
businesses with a physical presence, the availability of reliable Internet services creates new
opportunities for entrepreneurs who might not be able to operate a physical location due to
capital challenges.
Even for businesses with sufficient capital to invest in physical locations, online
commerce creates an opportunity to design a business model to reduce capital expenditures,
reach a more extensive customer base, and create flexibility for business owners and employees
in terms of work location (Bahcecik et al., 2019; Yildirim & Başer, 2016). Additionally, the
proliferation of Internet commerce expands opportunities for individuals to engage in economic

47
activities that might otherwise be limited in their geographic location, creating greater workplace
and entrepreneurial options for individuals in rural locations (Bahcecik et al., 2019; Carpenter &
Loveridge, 2021; Yildirim & Başer, 2016).
Expanding beyond personal usage, social media platforms are essential tools for
businesses (Yildirim & Başer, 2016). Social media platforms create an opportunity for
businesses to market physical and digital commerce locations, sell goods and services directly,
and connect with educational and business resources (Gavion et al., 2018). Social media
platforms create more significant opportunities for entrepreneurs to connect with customers and
understand market trends that might influence their businesses (Gavino et al., 2018; Yildirim &
Başer, 2016).
As products and services are increasingly marketed online, social media platforms can
serve as a valuable tool for advertising goods and services and connecting business owners with
other entrepreneurs (Gavino et al., 2018). These social media platforms provide essential, lowcost marketing opportunities to business owners which augment or replace traditional, more
expensive marketing opportunities. Additionally, social media platforms can serve as a
mechanism for creating a community of entrepreneurs for individuals who are interested in
business ownership and may benefit from the support of experienced business owners and
employees (Gavino et al., 2018).
Social networking can be helpful for Latinx business owners and individuals interested in
entrepreneurship (Gavino et al., 2018). Online tools can effectively share information about
business ownership related to management, technical capacity, and accounting. Like communitybased organizations, social media networks can connect individuals belonging to specific

48
communities or residing in specific geographic locations at a lower cost than traditional
educational opportunities (Gavino et al., 2018; Theodos et al., 2021). However, studies on social
media marketing suggest that Latinx business owners engage less actively in social media
marketing opportunities than European American business owners (citations for the studies you
referenced are needed here). This disparity is not present in the personal social media utilization
of Latinx and European American individuals, representing an opportunity for Latinx business
owners to engage more actively with online marketing opportunities that can connect them to
other entrepreneurs and customers in their area (Gavino et al., 2018).
While the Internet created a great deal of opportunity for entrepreneurs, it raised the
importance of digital literacy for individuals looking to operate businesses (Paul, 2019). Access
to the Internet and technological literacy is vital for managing websites, taking advantage of
digital accounting platforms, selling products online, and benefiting from digital human
resources tools (Paul, 2019). Though businesses once operated with a limited digital footprint,
even physical store locations often have websites and use digital payment platforms in their store
locations (Paul, 2019). When inequalities related to digital literacy exist, the importance of the
Internet to business platforms can hinder success rather than benefit (Fauzi et al., 2021; Gavion
et al., 2018; Watkins et al., 2018). This section concludes the summary of the literature related to
Latinx entrepreneurship. The following section will discuss the theoretical framework for
understanding entrepreneurial intentions.
Theoretical Framework
The theoretical frameworks applied in this study are Cochran's (1965) theory of
entrepreneurship and Kunkel's (1965) theory of entrepreneurship supply. When combined, these

49
two frameworks provide a way to investigate entrepreneurial perceptions and motivations of
Latinx individuals. Cochran's (1965) theory states that entrepreneurial motivation is influenced
by factors related to the individual, societal expectations, and the business requirements being
considered. Cochran (1965) states that the cultural expectations an individual raises influence
their interest and ability to undertake entrepreneurial activities. Societies that place an
expectation of entrepreneurship will encourage individuals to own and operate a business.
Meanwhile, individuals who grew up in a society that did not expect individuals to own a
business due to a lack of interest or opportunity will produce fewer individuals who act on
entrepreneurial ambitions (Cochran, 1965).
Additionally, Cochran (1965) states that personal factors influence an individual's interest
in operating a business. Such personal factors include educational level and access to personal or
loaned capital. Though personal factors influence entrepreneurial ambition, Cochran (1965)
emphasizes that entrepreneurs are not “super normal” products of their culture in that they are
deviations from cultural norms. Instead, entrepreneurial individuals are a product of the
environment in which they were raised (Cochran, 1965).
The final influential factor considered by Cochran (1965) is the requirements of the
business being considered. In order to pursue an entrepreneurial activity, individuals need to
have a reasonable assumption that they will be able to access the goods required to run the
business and the human labor needed to conduct business operations. This factor may also
influence the type of entrepreneurial activity individuals undertake in specific communities and
geographic locations. The availability of resources to operate a business reasonably influences
the willingness of individuals to undertake the business operation (Cochran, 1965).

50
Kunkel's (1965) theory of entrepreneurship supply is the second theoretical framework
that influences the study. Kunkel (1965) states that the main factors influencing entrepreneurial
behavior are demand, limitations, labor, and opportunities. The demand requirement relates to
the reasonable expectation that the entrepreneur will receive a financial reward for conducting
the business. Individuals are less likely to start a business if they do not feel a substantial
likelihood of profitability. The second factor relates to limitations, individuals who perceive
there to be factors that limit their ability to run a business are less likely to undertake the effort or
to be successful in it. Examples of limitations that might repress entrepreneurial activity include
a lack of access to capital or societal expectations about what kind of activities they should
engage in professionally. For example, if an individual feels their culture would disapprove of an
entrepreneurial endeavor, they are less likely to undertake the project.
In addition to the influences of demand and limitations, Kunkel (1965) noted that the
availability of labor is vital to entrepreneurial ambition. Individuals interested in starting a
business need to be reasonably confident that they will be able to hire qualified individuals to
undertake business activities. For example, someone is less likely to start a technology-based
company in a geographic location with very few individuals with the appropriate educational
experience.
Figure 1 conveys the conceptual framework consisting of Cochran's (1965) theory of
entrepreneurship and Kunkel's (1965) theory of entrepreneurship supply in the ovals. The circle
at the bottom represents the Barriers perceived by Latinx individuals about entrepreneurships.
The arrows represent both theories utilized in the proposed study on Latinx entrepreneurship.

51
Figure 1
Latinx Entrepreneurship Conceptual Framework

52
Summary
This chapter reviewed recent literature related to Latinx entrepreneurship. Latinx
business owners play a significant role in the United States economy, but disparities still exist in
business opportunities for Latinx entrepreneurs (Fairlie, 2018; Orozco, 2021; Regalado, 2020).
Latinx individuals experience lower entrepreneurship rates than others, contributing to economic
disparities (Orozco, 2021). If left unaddressed, disparities between Latinx individuals and other
groups could continue to widen, leading to a loss in opportunities for the Latinx population
(Fairlie et al., 2020).
The problem addressed by this study is an overlooked gap in the current literature
regarding the perceptions, knowledge, and motivation of Latinx members, preventing them from
pursuing business ownership and overcoming perceived barriers to entry. The theoretical
framework used to guide the study is Cochran's (1965) theory of entrepreneurship and Kunkel's
(1965) theory of entrepreneurship supply. Cochran's (1965) theory states that cultural
expectations influence individual entrepreneurial activity. Kunkel's (1965) theory stated that the
factors influencing entrepreneurial activity are demand for the product or services offered,
limitations of the individual or the business market, the availability of labor, and the
opportunities for financial return within the individual's skill set. A lack of financial opportunity
or scarcity of critical resources will negatively influence individual entrepreneurial intention
(Kunkel, 1965).
The themes which emerged from relevant literature include the characteristics of Latinx
entrepreneurship, geographic location, etc. Regarding the characteristics of Latinx
entrepreneurship, research suggests that Latinx businesses play an essential role in the United

53
States economy but tend to be smaller than businesses run by other groups (Pisani & Morales,
2020). Characteristics that influence the size and profitability of Latinx enterprises include the
proprietor's age, education level, income level, nativity, and gender (Medina & Schneider, 2018;
Pisani & Morales, 2020). Additionally, Latinx individuals are more likely to start businesses in
specific geographic locations with larger populations and support systems or in industries in
which Latinx individuals have traditionally competed successfully (Carpenter & Loveridge,
2021; Horst & Marion, 2019; Munoz & Spain, 2015).
Barriers exist that influence rates of Latinx entrepreneurship (Garnham, 2020; Santellano,
2021; Orozco, 2021). Access to capital is a barrier to entrepreneurship, as Latinx individuals
have less personal capital to expend on enterprises and less ability to borrow capital from
financial lenders (Fairlie et al., 2020; Santellano, 2021). Finally, Latinx individuals are more
likely to have lower levels of educational attainment, which influences business ownership and
long-term business success (Lopez et al., 2018).
There are many options for fostering and stimulating Latinx entrepreneurship (Ahmad et
al., 2018; Fisher et al., 2021; Joanino, 2021; Klein, 2019; Olokundun et al., 2018;
Sukayejworakit et al., 2021). Latinx businesses benefit from community support, such as other
members of the Latinx community frequenting their services based on culturally competitive
provisions of offerings and preferred language familiarity (Moran, 2021). Additionally,
government public purpose programs can support small businesses through economic downturns
(Santellano, 2021). Increased internet access and communication technology proliferation has
created additional opportunities for small businesses to thrive under various circumstances
(Yildirim & Başer, 2016).

54
There is a gap in the literature related to how Latinx individuals perceive
entrepreneurship's benefits, challenges, and supports (Santellano, 2021). This study will explore
the perceptions of Latinx students enrolled at California University. Chapter Three details the
methodology used to conduct the study, including information on the design, data collection, and
data analysis.
Chapter Three: Methodology
This chapter reviewed the research questions that guided the conducted study and
presented the study's design, including a discussion on the reasons for choosing the design.
Next, the qualitative research design for the study on motivating entrepreneurship in the
Latinx community was discussed.
The purpose of this qualitative descriptive study was to evaluate the perceptions,
knowledge, and motivation of Latinx members which prevent them from pursuing business
ownership and perceived barriers to entry.
Research Questions
The research questions primarily queried information about the institutional and
organizational barriers which Latinx individuals perceived to impact entrepreneurial intention.
Additionally, the questions address the personal and cultural factors influencing entrepreneurial
activity.
RQ1: What institutional/organizational barriers did participants perceive to prevent
Latinx members from entering entrepreneurship?
RQ2: What personal and cultural factors did participants perceive influenced Latinx
individuals to pursue or avoid entrepreneurial activity?

55
Overview of the Design
The study used a qualitative transcendental phenomenological design based on data
collected through semi-structured interviews. The study sought to explore the perceptions of
Latinx individuals regarding entrepreneurship and barriers to entrepreneurial opportunities.
Qualitative research was chosen as it is commonly used to address questions related to human
experiences, lives, and social structures (Fossey et al., 2002). This methodology is most
appropriate for managing variables that are not easily quantified, like perceptions, emotions, and
experiences (Fossey et al., 2002). As the present study sought to understand complicated
experiences and phenomena which cannot be discreetly quantified, a qualitative methodology
was most appropriate.
While many elements of human experiences can be measured through carefully collected
discrete data, these metrics focus on numerical values such as the rates of Latinx individuals
owning businesses, the average income generated by those businesses, and the average number
of years Latinx businesses operate. While quantitative studies can explore dollars, rates, years,
and other values, these values often do not illuminate the causes of disparities or the experiences
of the individuals involved with the businesses (Fossey et al., 2002). To understand why
disparities exist in entrepreneurial activity in the Latinx community, it is important first to define
the experiences of individuals and illuminate their perceptions of successes, barriers, and
challenges.
The study used a transcendental phenomenological design. Data was collected using a
semi-structured interview protocol. Semi-structured interviews allow respondents the freedom to
discuss their perceptions and experiences while ensuring enough direction is given to solicit
answers closely related to the research questions (Longhurst, 2003). Semi-structured interviews

56
also ensure that participants address a similar set of topics, thus facilitating meaningful data
analysis (Longhurst, 2003).
The purpose of qualitative transcendental phenomenological research was to describe the
specific experiences and phenomena which influence an individual or a community (Lambert &
Lambert, 2012). This was an appropriate design for the study, as the study sought to describe the
phenomena of Latinx entrepreneurship and the barriers Latinx individuals perceive to impact
entrepreneurship. A critical difference between transcendental phenomenological research and
other types of qualitative research paradigms, like grounded theory, is that transcendental
phenomenological research focuses on describing phenomena from the participants' point of
view (Moustakas, 1994). This study focused on describing Latinx entrepreneurship and the
barriers to Latinx entrepreneurship. Therefore, a transcendental phenomenological design was
chosen as the most appropriate design for the study.
Research Setting
The setting for this study is a large university in California. In 2021, California
University enrolled 49,500 students in undergraduate and graduate programs. Of those total
students, 15.6% self-reported as being Hispanic or Latinx. That percentage included only
students living in the United States before enrollment.
The population for the study was Latinx students from two recruitment groups. One
recruitment group consisted of Latinx students pursuing degrees at California University who
were interested in entrepreneurship, but enrolled in the MBA or business program;the other
group included students who were not interested in entrepreneurship. The sample included
Latinx individuals who were not interested in entrepreneurship to get a balanced perspective on
entrepreneurial intentions and the barriers that might discourage interest in business ownership.

57
After receiving IRB approval, but before undertaking recruitment, site authorization was
obtained from the university administration. The researcher contacted the university
administration by email to explain the purpose of the study, proposed recruitment processes, the
time commitment required of participants, and the ethical considerations. Additionally, the
researcher included the site authorization form. Once permission was obtained and the site
authorization form signed, the researcher conducted recruitment virtually through social media
platforms such as LinkedIn for student or alumni volunteers. The social media advertisements
included information on the purpose of the study, the eligibility criteria, the time commitment
required, ethical considerations, and the researcher's contact information.
Interested participants were asked to contact the researcher through university email. The
researcher screened interested applicants to ensure they met the eligibility requirements. The
eligibility requirements were that the participants identify as Latinx, resided in the United States
prior to their enrollment at the California University, and were currently enrolled at the school or
alumni of the school. Participants were required to be enrolled in either a general business
discipline or MBA program, ensuring a certain level of familiarity with academic and
institutional contexts. Interviews took place online using Zoom and lasted between 45 and 60
minutes.
Recruitment Results
Ten participants were recruited exclusively from the School of Business at California
University, focusing on students studying business disciplines and MBA students. Recruitment
methods included virtual efforts, with LinkedIn being the most effective platform. One
participant was recruited through word of mouth. This targeted recruitment ensured a specific
focus on Latinx students interested in entrepreneurship within the business disciplines,

58
eliminating the involvement of participants from other academic backgrounds. The deliberate
recruitment sought to investigate entrepreneurial aspirations and identify potential obstacles
within Latinx individuals interested in business.
After obtaining the necessary approvals and site authorization from the university
administration, the researcher conducted the interviews online using Zoom. The interviews,
between 45 and 60 minutes, were instrumental in gathering valuable insights into the
perceptions, knowledge, and motivations of Latinx individuals regarding entrepreneurship and
the barriers they perceived. The diverse recruitment efforts helped ensure a comprehensive
exploration of experiences and perspectives within the Latinx student community at the
California University.
The Researcher
The researcher, of Latinx descent, has a close connection with both the research setting
and participants. Drawing on personal entrepreneurship experience, the researcher acknowledges
their positionality, actively mitigating biases to ensure impartial study results. In an extra layer of
precaution against biases, including implicit ones, reflexive journaling was consistently
maintained due to the potential risk of bias. The researcher actively practiced reflexive journaling
Throughout the research process to maintain transparency and minimize potential biases. Regular
entries were made in a reflexive journal, capturing thoughts, reflections, and any personal
considerations that arose during different stages of the study. This practice served as a
mechanism for self-awareness, allowing the researcher to assess their perspectives and potential
influences on the research critically.
The reflexive journal documented decisions made during the study, such as
methodological choices, participant interactions, and data analysis approaches. Any emerging

59
implicit or explicit biases were acknowledged and addressed in the journal. This reflective
process ensured that the researcher's background, being of Latinx descent, did not inadvertently
impact the study's integrity. By engaging in reflexive journaling, the researcher added an extra
layer of rigor to the research process, enhancing the credibility and reliability of the study results.
All decisions related to the study were documented in the journal so subsequent researchers and
readers could draw individual conclusions about the validity of the data. Furthermore, the
reflexive journaling process allowed the researcher to evaluate research decisions and examine
them for appropriateness personally. In addition to documentation of potential bias, the journal
was used to document thoughts and questions that arose during the entire research process.
Data Sources
This section explains details about the participants, the interviewing process, and the data
collection procedures. It additionally includes explanation of the data analysis process, along
with the validity and reliability of the study. The explanations were written to a level of
granularity that would enable the readers and other researchers to thoroughly understand how the
study was conducted and how to replicate it.
Participants
The study's sampling process involved including Latinx students pursuing degrees at the
California University. The sample was carefully designed to encompass ten individuals
interested in entrepreneurship and business-related disciplines. Individuals were selected based
on their interest in entrepreneurship, and demographic characteristics such as gender,
race/ethnicity, and enrolled degree programs were considered. For qualitative studies, the sample
size is often based on the number of individuals required to research data saturation (Fusch &
Ness, 2015).

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The ideal sample aimed for a gender-balanced representation, encompassing both male
and female Latinx students. Participants were required to be enrolled in either a general business
discipline or MBA program, ensuring a certain level of familiarity with academic and
institutional contexts.
In total, ten individuals were selected from the sample population to participate in the
study. The common practice influenced the decision on sample size in qualitative studies, where
the achievement of data saturation determines the number of participants. Typically, data
saturation is attained between 12 and 15 participants in studies employing semi-structured
interviews (Fusch & Ness, 2015). To account for potential dropouts, 17 participants were
initially targeted with the goal of interviewing 12. However, only 10 participants were
interviewed. Despite failing to achieve the intended goal, the data obtained from each interview
was robust enough to address the research questions and validate existing barriers for Latinx
community members in the entrepreneurial sector.
The researcher selected participants using a purposive sample from the eligible potential
participants. Purposive sampling is a method of deciding who may participate in the study while
considering the qualities of the study. The aim is to select information-rich participants (Patton,
2015). These participants are people who are well-informed about the phenomenon being studied
(Creswell & Poth, 2016). Participants must also be available to participate in the study, have the
time to do so, and be articulate and willing to share in a reflective manner (Creswell & Poth,
2016). A purposive sample is appropriate for qualitative research and allows the researcher to
select a group of students representing a range of academic interests, grade levels, and
disciplines. The researcher sent additional information about the study requirements and obtained
informed consent from participants to collect data.

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Instrumentation
The semi-structured interview protocols used in this study helped collect qualitative data
from participants that closely aligned with the research questions (Longhurst, 2003). Semistructured interviews allowed participants to respond freely to questions in their own words. The
semi-structured interviews followed specific protocols that were designed to increase the
likelihood that the research questions would be fully addressed by participants (Harrell &
Bradley, 2009). However, follow-up questions were also asked to clarify and obtain more indepth information. Follow-up questions such as, “Can you tell me more about that?”, “I am not
sure I understand, so can you explain in more detail?”, or “can you give me an example?”
Additionally, the semi-structured interviews ensured that all participants responded to the same
questions and addressed related topics to answer the research questions (Harrell & Bradley,
2009).
Data Collection Procedures
While obtaining informed consent from the participants regarding participation in the
study, the researcher requested that the interviews with participants be audio-recorded. If
participants did not want audio-recorded, they were ineligible for the study. Zoom has directions
on its website for audio recording interviews. The interviews ranged between 45 to 60 minutes.
The audio recordings of participant interviews were transcribed using the Trint app for
the iPhone or similar technology (Trint, 2022). Transcriptions were completed soon after each
interview to maintain the accuracy of the participant's answers and as much data as possible.
Trint was chosen because of the ease of use but also because security is a priority. Sensitive
information is protected with proper security credentials, and a security guide is available on the
product website (Trint, 2022).

62
Each transcribed interview was given back to the participant to check for accuracy. This
practice is referred to as member checking and ensures the study's validity (Birt et al., 2016).
Participants were informed of a process to report problems. They were instructed to note
concerns in writing and send the transcript back to the researcher. The researcher would decide if
changes or adjustments need to be made to the transcript, but thoughtful consideration of each
comment will be foremost. Notably, there were no issues or concerns from any of the study
participants regarding the accuracy of the transcript.
Data Analysis
The study data was analyzed using thematic analysis. The thematic analysis paradigm
developed by Clarke et al. (2015) was used. To facilitate the data analysis process, the researcher
used a qualitative data analysis platform such as NVivo. NVivo facilitates data analysis by
helping the researcher organize the data digitally, code data points, group codes into themes, and
make connections between datasets. The process follows the six-phase analysis process, which
includes the following steps: familiarization, generating initial codes, grouping related codes,
refining themes, naming themes, and writing the study report (Clarke et al., 2015). The phases
are described below.
In the first phase, each transcript was read through five times to become familiar with the
data contents. This step is critical because familiarization allows the researcher to make
connections more easily between data points, identify themes, and understand the intended
meaning of the participant (Clarke et al., 2015). The researcher meticulously reviewed the entire
dataset multiple times, systematically identifying and categorizing emerging themes. A
comprehensive effort was made to ensure that no theme remained undiscovered, enhancing the
reliability and completeness of the analysis.

63
In the second phase, words and passages of each transcript were coded using an open
coding technique where the codes are developed based on the data presented during the analysis
process. This is contrasted to prior coding where the codes are developed in advance based on
findings from previous research. The open coding technique was selected to limit bias in the
process and ensure the codes are based on the data collected rather than prior assumptions
(Williams & Moser, 2019).
The codes were generated from reviewing words and phrases, such as identified barriers,
challenging emotions, specific experiences, perceptions, and educational requirements. These
were just examples of possible codes, as the researcher did not make any preconceived notions
about the data prior to conducting data coding. The researcher coded all of the data. While not all
of the data had attached codes, 50% of the data was coded based on qualitative data gathered
from the interviews (Clarke et al., 2015).
Next, related codes were grouped together. It was anticipated that codes for specific data
passages would not be identical, but it was suspected that some would be related to one another.
After the researcher collected the codes into groups, the researcher closely reviewed the codes
for relatedness. This process included combining groups of codes that were very similar or
splitting codes into multiple groups that were overly broad. Some were also eliminated as they
did not represent most participants' answers. The researcher reviewed all the groups for
relatedness, relevancy, and meaning until they reached an appropriate level of connection and
organization (Clarke et al., 2015). It was intended for the codes to be initially grouped as the
building blocks of later themes (Clarke et al., 2015). In practice, I grouped a portion of codes
together that pertained to various aspects, such as educational requirements for entrepreneurship,

64
a lack of funding, and perceptions of risk. This step in the analysis allowed for a more nuanced
examination of themes and facilitated a comprehensive understanding of the dataset.
Once the researcher was satisfied with the code groups, the researcher reviewede the
groups and developed theme names. The names were words or short phrases that closely
described the grouped codes' nature. The theme represents the group's primary purpose and is
easily understood by the researcher and others. In the final step of the data analysis process, the
researcher wrote the study report (Clarke et al., 2015).
The report consisted of the name of the theme, then documenting a theme and connecting
it to prior literature that was also linked to a research question. First, themes were represented by
a quote from one or more participants. Then extracts from prior literature that supports the theme
were associated with the themes. The report is more than a listing of themes; it is a detailed
description of the commonalities of the meaning of each theme, backed up by supporting
literature that also helps explain and describe the meaning. These findings of the proposed study
are presented in Chapter Four.
Trustworthiness and Credibility
To increase the credibility of the results, the researcher engaged in a member-checking
process with the participants (Candela, 2019). The researcher sent the transcripts to the
participants for them to approve. Member checking strengthens the validity and reliability of the
findings by confirming that the written transcript accurately depicts the participants' answers
(Fusch & Ness, 2015). Once the transcripts were approved the data collection process was
completed, and the researcher conducted the data analysis.
To increase the reliability of the study results, the researcher also engaged in a reflexive
journaling process. Reflexive journaling documents all the steps of the study procedures and

65
allows subsequent researchers to consider the steps, replicate the study, and personally determine
if the results are reliable (Candela, 2019). Journaling also includes the researcher's thoughts,
biases, and questions during the research process.
Ethics
The researcher maintained the confidentiality of all participants in the study. Participants’
identities were protected through the assignments of pseudonyms, guaranteeing the preservation
of their confidentiality. Transcripts were edited to remove instances of personal identifying
information. Additionally, the researcher did not include any information in the study which
might identify the participant to social or professional connections.
Additionally, participants were given the ability to withdraw from the study at any time
and were clearly informed that there will be no consequences of any kind for withdrawing. No
participant requested to withdraw from the sudy.
Chapter Four: Findings
The purpose of this qualitative study was to evaluate the perceptions, knowledge, and
motivation of Latinx members that prevent them from pursuing business ownership, including
their perceived barriers to entering business markets. The research questions used to guide this
study were:
RQ1: What institutional/organizational barriers do participants perceive to prevent Latinx
members from entering entrepreneurship?
RQ2: What personal and cultural factors do participants perceive influence Latinx
individuals to pursue or avoid entrepreneurial activity?
The theoretical frameworks that helped shape this study were Cochran's (1965) theory of
entrepreneurship and Kunkel's (1965) theory of entrepreneurship supply. The use of both

66
theoretical frameworks is essential to this study as they cover two archetypes of Latinx
entrepreneurs. Cochran (1965) stated that entrepreneurial perceptions and intentions are
influenced by individual characteristics, societal expectations, and the barriers associated with
business ownership. In summary, individuals are more likely to be entrepreneurs if they have
characteristics associated with entrepreneurship, such as a high tolerance for risk and belonging
to a culture that encourages entrepreneurship. If the individual's barriers to entrepreneurship are
surmountable, they will likely have high entrepreneurial intent (Cochran, 1965). Several
participants in this study, as will be discussed in this chapter, align with Cochran’s (1965) theory
as their road to entrepreneurship aligned with the perceptions and influenced intentions
mentioned above.
In contrast, some participants either aligned completely with Cochran's theory, shared
some of Kunkel and Cochran's theory, or wholly aligned with Kunkel’s theory. In summarizing
Chapter Two, it was discussed that Kunkel's (1965) theory of entrepreneurship supply centers
around key factors shaping entrepreneurial behavior—demand, limitations, labor, and
opportunity. Unlike approaches emphasizing personal and societal aspects, Kunkel's (1965)
focus primarily revolves around market forces pertinent to entrepreneurship. The theory posits
that individuals are inclined to initiate a business when they perceive a favorable opportunity for
financial gain, encounter low limitations related to the business, and benefit from an ample
supply of labor to support business operations.
Before this chapter dives into the themes found through qualitative interviews, it is
valuable to provide background on each participant. The background will expand on the barriers
and obstacles each participant faced when deciding to engage in entrepreneurial ventures or not
pursue entrepreneurship. This chapter initiates by offering concise backgrounds of the study

67
participants, followed by a detailed exploration of the research question findings, concluding
with a comprehensive summary of the chapter.
Participants
The study sample consisted of 10 Latinx alumni who graduated from the California
University. Of the 10 participants, only one is a full-time entrepreneur. The remaining nine
participants included three with entrepreneurial tendencies but decided not to act on them for
reasons I will share in the findings. The six individuals operating independently are all hybrid
entrepreneurs who mitigate risks in their ventures by concurrently holding full-time positions
with other jobs or companies. It is important to note that six hybrid entrepreneur participants
have successful careers in various industries that their education allowed them to pursue. The
three who decided not to pursue entrepreneurship are senior managers in their respective
industries. The solo full-time entrepreneur has held similar roles in the past and only transitioned
into their full-time entrepreneur life choice when their business allowed them to leave their
career.
Table 1
Sociodemographic Characteristics by Partipicant
Pseudonym Gender Degree
Participant 1 Seraphina F Masters
Participant 2 Kairos M Masters
Participant 3 Maverick M Masters
Participant 4 Santiago M Masters
Participant 5 Jax M Masters
Participant 6 Alexis F Masters
Participant 7 Alejandro M Masters
Participant 8 Carlos M Masters
Participant 9 Pablo M Masters
Participant 10 Rafael M Masters

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Seraphina
Seraphina is a federal supervisory paralegal in the city of Los Angeles. Seraphina is a
first-generation Latina raised by two immigrant Latino parents who instilled work ethic, grit, and
perseverance in Seraphina from an early age. Seraphina’s parents were not entrepreneurial, and
she had no mentors or relatives who supported or encouraged entrepreneurship. Seraphina said,
“I think from my experience, the risk of losing it all in the pursuit of entrepreneurship is one of
the scariest things for me because of the way I grew up.” Seraphina does not want to repeat
living poor or struggling for money like her parents did throughout her childhood. She said, “I
already grew up poor, you know, and getting to where I am took lots of work.” Although
Seraphina sees the value and return on investment if the entrepreneurial venture one chooses is
successful, the potential of failure and losing it all helped Seraphina decide not to pursue
entrepreneurship quickly.
Kairos
Kairos is a 20-year military reserve member and a Business Development Manager for a
corporate entity. Kairos is married and is the proud father of two children, two roles that Kairos
values dearly. As Kairos matured, what once mattered to him no longer mattered; he said, “When
I was younger, success was getting an education and a high-paying job. Now that I am a father
and a husband, success to me is the ability to take care of my family and spend valuable time
with them.” Kairos is a first-generation Latino raised by immigrant parents and was taught the
value of providing for his family by his father. Kairos believes that “in today's day and age,
entrepreneurship is put on a pedestal.” His decision not to pursue entrepreneurship was based on

69
the stability he chose to offer his family. Kairos will one day pursue an entrepreneurial venture
when his children are grown and can support themselves.
Maverick
As a full-time entrepreneur, Maverick is one of the leaders in veteran real estate in Los
Angeles County. Maverick is a Latinx community member raised by two parents who
immigrated from El Salvador. Maverick was exposed to entrepreneurship through his mother’s
efforts to feed the family. Maverick's mother would make things and sell them at swap meets or
by word of mouth. His mother's work ethic and willingness to survive at all costs instilled an
entrepreneurial spirit in Maverick from an early age. Maverick shared that “at first, she had to
make things to support our family; later in life, she became an entrepreneur through the support
of a company.” Her success and dedication to building a business for herself have fueled
Maverick's drive to be a successful entrepreneur.
Santiago
Santiago is a father of three and a husband to a woman he calls “the strongest woman I
have ever known.” He is an officer in the Army near retirement but still enjoys the journey.
Santiago is the son of immigrant Mexican parents passionate about generational change. His
parents were humble immigrants who worked multiple jobs to support Santiago and his siblings.
His father was always sage with his money; he understood that property investment would render
wealth. Santiago's father taught him the value of purchasing and owning a home. As Santiago
grew older, he dreamed of becoming an entrepreneur with real estate as his primary focus.
Santiago went off to college, enlisted in the military, and used it as an opportunity to
increase his “cash flow.” While in the military, Santiago said, “I was focused. While everyone
went out and bought nice cars, I saved. I knew that I had to save enough money to buy a house.”

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Santiago eventually purchased his first home and, 18 years later, has purchased over ten
properties. He has evolved his entrepreneurial portfolio and owns a trailer on Airbnb in Palm
Springs, a van he rents on Touro, and a restaurant in Hawaii. Santiago's goal is to retire from the
military in the next two years and not have to work any longer. He dreams of spending as much
time with his beautiful wife and children.
Jax
Marine Corps Force Recon Scout Snipers are amongst the elite forces in the armed forces
around the world. Marine Corps Scout Snipers are hand-selected from the 1% of top shooters in
the Marine Corps and trained for two years before they become fully operational. Jax is one of
the few with the Marine Corp Force Recon Scout Sniper title. Jax was raised by immigrant
parents who instilled work ethic, resiliency, tenacity, and what he calls “ganas” desire. Now a
retired Marine, Jax has a banking career and is a devoted husband and father. Jax has always had
a passion for art and launched a passion project five years ago.
Jax had no mentors or role models that reinforced entrepreneurship in his life. His father
told him he should find a reliable and steady job to support his family. Upon graduation with his
masters from the California University, he decided to embark on a passion venture. Jax launched
a company that combined his appreciation for art and his military career. He was surprised at
how well the market received his art and now focuses most of his free time on building his small
company and practicing art. Although his business has seen some success, Jax will not leave his
role in finance as he genuinely enjoys the security that it offers him and his family.
Alexis
As she said, Alexis attended college right after high school, “like any good immigrant
daughter is accepted.” Alexis's goal was to honor the hard work and dedication that her Latino

71
immigrant parents did to raise her. Alexis grew up in a humble environment, like most of the
participants in this study, and was taught to work hard. After college, Alexis noticed that some of
her classmates did not join the workforce but went to work for their parent’s business. Alexis
was intrigued by her friend’s parent’s success in entrepreneurship that she decided to investigate
further. Alexis said, “I was intrigued by working for yourself, setting your hours, and pursuing
something you are passionate about.” Working for yourself was a foreign concept, as everyone in
Alexis's life had always worked for someone.
Alexis did not decide to start her own business until she attended California University
for her master's in business. The business school at California University equipped Alexis with
the tools to run a business successfully and how to build a product. Alexis leveraged the school
network and connected with like-minded mentors who were successful Latino entrepreneurs.
Shortly after graduation, she said, “I took the leap of faith and trusted in my work ethic and
newly gained knowledge.” Alexis now runs a successful business and attributes her success to
her experience at California University. The transition was not easy; Alexis still fears that if her
business venture fails, she will not have something to fall back on as her family still lives a very
financially humble life.
Alejandro
Alejandro served in the Marine Corps as an officer who attended the School of Business
at the California University to assist him with his transition out of the military. Immigrant
parents raised Alejandro in Los Angeles, California. Alejandro’s mom has always been an
entrepreneur; she began her journey in real estate and now owns a consulting firm. Alejandro is
passionate about entrepreneurship and does not see himself working for anyone else. Alejandro
stated that his entrepreneurial inspiration came from “seeing a lot of the people I am around with

72
who are entrepreneurs and the freedom they have.” Alejandro has recently launched a consulting
firm and is a partner in a clothing printing business.
Alejandro believes that being successful in entrepreneurship takes patience and the
willingness to endure failures along the way. Alejandro leveraged his savings from the military
to launch his ventures and has not had to borrow any funds from a lending institution. Alejandro
believes that one of the barriers preventing Latinx members from launching businesses is the
lack of funding. Alejandro expressed that he was lucky to have a great-paying military career and
the financial education from his mother growing up that taught him to save money. Alejandro
now gives back to his community by educating them on the value of financial literacy and was
elected as his city’s financial secretary.
Carlos
Carlos is a proud Marine Corps veteran and a seasoned Detention Officer in California.
Carlos has always wanted to launch a business but lacked the business acumen he believed was
necessary to launch a business successfully. Carlos completed his undergrad in business with the
goal of one day attending the California University School of Business to complete his master's
in business administration. Carlos realized that dream, and it was during his first year at the
California University that he realized his entrepreneurial dream. Carlos was asked to build a
fictitious company and identify a customer pain point during a class project. Carlos experienced
his “eureka moment” by identifying a pain point in his organization.
Carlos took his class assignment and turned it into a half-a-million-dollar-per-year
passion project. When asked if he had any previous entrepreneurial experience, he responded, “I
am Hispanic, you know, I grew up hustling, you know, I mean make a little product and sell it
and make money. It is a hustle, you know. That is how I grew up.” Carlos was no newcomer to

73
what he called “hustle,”; he lacked the formal business education. Carlos attributes his success to
the education he received in grad school and believes he would have never launched his business
without it.
Pablo
As one of the first members of his family to graduate from college, Pablo is proud of his
Latinx heritage and feels responsible for the generational change. Pablo holds an executive-level
role with a prestigious consulting firm located in New York City. As a California University
School of Business graduate, Pablo recalls learning about entrepreneurship in his classes. Pablo
recalls reflecting on his upbringing during the entrepreneurial courses and thinking, “This is what
my family had to do to survive. We made things and sold them to tourists; it was a way of life.”
Pablo is a disabled veteran athlete who supports small businesses by offering them exposure on
his social media platform. When asked if he has considered becoming an entrepreneur, Pablo
responded, “me?” Nope. I support the grind and hustle, but it is too risky for me.”
Pablo believes one of the barriers to the underrepresentation of Latinx entrepreneurs is
fear of failure and reverting to poverty. Pablo was raised by two Latin men who instilled a strong
work ethic and recommended that he find a stable job. Pablo listened to his father's advice and
has been very risk-averse. Pablo enthusiastically stated during the interview, “You know, if I had
parents who were well off and would be there to lift me up if I failed, I would definitely start a
business in the fitness industry.” Pablo values freedom and believes that successful entrepreneurs
are free to live on their own terms.
Rafael
Rafael is a first-generation Latinx community member whom two immigrant parents
raised. Rafael currently works in corporate America as a Project Manager and loves what he

74
does. Rafael said, “I came from nothing. Now I live a good life, and I am able to provide for my
family what I didn't have growing up.” Rafael has always been enamored with launching a
business one day. However, Rafael lacks what he called “confidence to succeed,” he mentioned
that he is afraid to step out of his comfort zone in his role. Rafael knows he should be promoted,
but he loves his comfort zone and does not want to leave it for the potential of earning more.
Rafael admires entrepreneurs as they must be willing to fail and be confident enough to step out
of their comfort zone.
Rafael attributes his lack of self-confidence to his upbringing, “it's not that my parents
did not instill confidence in me. They simply always pushed me to be risk-averse in gravitating
towards steady income.” For the first time in his life, Rafael has saved enough money to pursue
an entrepreneurial venture in real estate. His goal is to purchase decrepit homes and remodel
them for a profit. He says that he is still very nervous about the endeavor and is taking his time
researching the market. Rafael said his self-confidence grew as he gained business knowledge
during his master's program at the California University School of Business.
Research Question One
The first research question asked, What institutional/organizational barriers do
participants perceive to prevent Latinx members from entering entrepreneurship? The context for
this question is that two main barriers are known to influence the rates of Latinx entrepreneurs.
As highlighted in Chapter Two, the research findings corresponded with the insights of
Santellano (2021) on capital accessibility and Graham (2020) on lower education levels. These
findings revealed two central themes pertaining to institutional or organizational obstacles faced
by aspiring entrepreneurs: limited capital access and educational disparities.
The Lack of Access to Capital

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Nine out of 10 participants indicated that lack of access to capital was an institutional
barrier to entering entrepreneurship. In the context of entrepreneurship, “capital” refers to the
diverse set of resources, both financial and non-financial, that individuals or firms deploy to
initiate, develop, and grow new ventures or businesses. This encompasses various forms of
assets, knowledge, social networks, and financial instruments, all of which contribute to the
creation and sustainability of entrepreneurial endeavors (Cassar, 2004; Davidsson & Honig,
2003). Santiago described the lack of financial capital as a barrier by stating:
Definitely financially, the initial barrier, I feel like any business, unless you partner up
with somebody that has the financial portion covered, if you're a sole proprietor . . . you
have to have some type of income to be able to make that happen. So, I'd say, definitely,
the financial barrier was definitely there.
As discussed above, Santiago identified a notable impediment faced by sole proprietors lacking
access to financial capital, particularly those without a financial partner capable of furnishing the
necessary resources. This challenge is particularly pronounced among Latin entrepreneurs, who
frequently operate as sole proprietors without the benefit of external assistance (Smith, 2020).
Seraphina supported Santiago's perspective on the importance of access to both financial
capital and the strength of support from a partner by stating in her interview, “I've talked to other
friends who are a little bit wealthier or were better off than me. In school, they were having
someone, a group of people to network, but just starting that at an earlier stage.” Seraphina
mentions that her wealthier friends had access to a network of people who could provide them
with opportunities. This implies that they had the chance to connect with influential individuals,
mentors, and peers who could offer guidance, support, and access to various resources.
Networking from an early age can be crucial in opening doors to educational and career

76
prospects. Seraphina's observation underscores the unequal distribution of human capital.
Individuals from underprivileged backgrounds may not have access to the same mentors, role
models, or educational opportunities as their more privileged counterparts. This disparity in
human capital can hinder their personal and professional development. Equally, individuals from
wealthier backgrounds often have access to financial resources, enabling them to pursue
entrepreneurial ventures, educational enrichment, and other experiences that can enhance their
skill set and knowledge base. In contrast, underprivileged individuals may struggle to access
these resources, limiting their ability to compete on an equal footing.
In comparison, individuals from poorer backgrounds did not have access to those
contacts. Rafael, who during our interview shared that he came from a very humble beginning, in
presenting a personal example, vividly illustrated the disparities in access to resources:
I have had to dream, but if I was the owner's son, well, no shit. You're gonna make it,
you’re gonna manage, you know, versus a guy who's like, I had to dream, to struggle to
this, and then I was able to make this connection, and then I had that 'A-ha!' moment,
where I was able to network, and I went to Craigslist, I found this graphic designer, then
we were able to work this, and then I figured this is how you do it. And then I went to the
bank [to apply for a loan].
Rafael's narrative serves as a powerful testament to the stark disparities that confront
Latino entrepreneurs who come from less privileged backgrounds. His account poignantly
underscores the substantial contrast between the opportunities afforded to aspiring entrepreneurs
with financial advantages and those who must navigate the intricate path of entrepreneurship
from a disadvantaged position. In particular, Latino entrepreneurs often encounter formidable

77
hurdles rooted in their socioeconomic backgrounds, such as limited access to financial capital,
networks, and educational resources.
The challenges faced by Latino entrepreneurs mirror broader patterns of inequality and
underrepresentation within the entrepreneurial landscape. These disparities manifest in various
ways, including the difficulty in accessing startup capital, securing essential business
connections, and obtaining necessary mentorship. Rafael's journey, marked by resilience and
resourcefulness, exemplifies the experiences of many Latino entrepreneurs who must dream,
struggle, and forge their own paths to success. This stark contrast between the entrepreneurial
opportunities available to individuals with financial privilege and those in less privileged
positions brings into sharp focus the pressing need for policies and support systems that can level
the playing field for Latino entrepreneurs and other marginalized communities (García, 2019).
Alejandro, like Rafael, also shares a very humble origin and has not had access to
expendable income that he can afford to lose. Alejandro spoke from personal experience of his
worst experience as an entrepreneur, “I didn't have the resources I needed, and I wasn't able to
get those resources due to the company’s financial issues. I overwhelmed myself, and I stressed
myself out to the point where I couldn't do anything right, and it made me look like I sucked.” As
a result of being unable to get the resources he needed, the reputation of Alejandro’s company
was damaged.
Alexis spoke of how her family's lack of access to money translated into her challenges in
raising money for her business:
When you first start your business, it's definitely been a barrier, is getting the banks to
lend you money, because I don't have family with a lot of money, and I come from a very
humble immigrant family, and that was a big barrier for me.

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Alexis faced numerous challenges obtaining bank resources, including establishing a credit
history, presenting collateral evidence, and generating a viable business plan. She also faced
difficulty finding cosigners for her loans because she did not have wealthy relatives. Maverick
indicated that a significant barrier to his entrance into entrepreneurship was, “I think just
financial rights, like understanding how borrowing works, how the financial aspect works.”
Maverick did not have the capital to start his business or know how borrowing worked. Maverick
added, “I think that a lot of people who have examples and have experience through their parents
and mentors? It's a lot easier for them [to borrow money]. But for me, that's been a big barrier.”
Thus, entrepreneurs from more affluent backgrounds than Maverick’s own might be taught how
to borrow money as part of their normal upbringing, but he had not been. Thus, for most
participants, access to capital was a significant barrier.
The Lack of Education
All 10 participants reported that lack of education was an institutional barrier to them
entering into entrepreneurship. Seraphina believed:
I think focusing maybe more on one-on-one mentorship. I know that they do offer them,
but maybe providing a guideline for the mentor. I think not everybody knows how to
actually mentor someone, and even though they're great at their job, maybe helping them
with that guideline.
Seraphina would have benefitted from more one-on-one mentorship and mentorship in which the
mentors provided guidance on how to be a valuable resource to mentees like Seraphina. Santiago
provided a similar response, stating, “It would have been great if they brought somebody that
was real-estate related, at least in my opinion, and . . . then if he or she would have shown us
how he or she did it.” Santiago had an interest in real estate and felt that an element lacking from

79
the training he received was guidance from a real estate professional who could provide an
overview of how a career in that field was built from the ground up. Santiago added: “I know
there's books and lectures, and I get it. I know that there has to be that portion taught. However,
like, why couldn't we have done a mock business?” Santiago also recommended a simulated or
‘mock’ business as part of the curriculum to make learning more concrete. Rafael felt: “They do
a good job putting successful people who have done it. So you can kind of see it, but I want to
see that pivotal moment where it makes sense, how do they get the connection to that?” In other
words, Rafael felt that much information was provided in his education. However, he wanted
more insight into how successful people applied those tools at real-world decision points to
achieve successful outcomes. Alejandro felt a gap in his education related to “How do you
market your product, how do you gain customers, and the sweat equity behind it.” Alejandro
clarified:
I would say focus more on practical application instead of teaching, showing me a
PowerPoint, because I know everyone learns differently, but it goes back to that point of
just, I need to know how to do it, like hey, I wanna start this [business]. How do I do it?
Alejandro believed that the gap in his education related to practical applications of the
knowledge he had gained. Connecting with this sentiment, Carlos highlighted the ongoing nature
of negotiation in his entrepreneurial journey, stating:
That negotiation is still going, going back to the word ‘hustle.’ You learn everything in
business [i.e., on the job]. We've also learned about money and you trying to get the best
price on stuff, and that's to me, the negotiation class was probably one of the better ones
that has carried on till now, and being able to say hustle that price.

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Carlos emphasized his desire for more education, particularly in the combination of taking
initiative, continuous negotiation for a competitive advantage, and the ongoing effort and
application he referred to as “hustling.” He identified the negotiation class as the closest the
current curriculum came to providing the type of instruction he envisioned. Building on Carlos's
emphasis on the need for tailored education, Kairos highlighted his perspective on the existing
gaps in the curriculum, specifically addressing the growing Latino community's
underrepresentation and the lack of tailored instruction for Latinx student-entrepreneurs. He
emphasized the importance of developing a curriculum that speaks directly to the needs of the
Latino community, suggesting the inclusion of Latino professors and mentors to provide a more
culturally resonant educational experience. Kairos expressed:
I feel that the curriculum for such a long time has been focused on European Americans,
African Americans, the Asian community, but more so now the Latino community is
growing, and the one thing that we haven't really tailored a lot of the curriculum toward is
the Latino community.
Kairos believed that the curriculum had been successfully tailored to help students of other
ethnicities overcome the specific barriers to entering entrepreneurship that they faced but that an
equally effective curriculum for assisting Latinx student-entrepreneurs had not yet been
developed. Kairos recommended “Creating and developing a curriculum that enables the Latino
community to grow, and that speaks to them, whether that is having Latino professors, whether
that is having Latino mentors come into the room.” Kairos, believed that it was time for a
curriculum to be developed that was tailored for Latinx students. Maverick agreed with Kairos:
“I think that business school, specifically speaking Latinos, I think just diving deeper into what is
intrinsically or what from their culture is keeping them from doing it.” Maverick believed the

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business school curriculum needed to be tailored to address the specific barriers Latinx
entrepreneurs faced. Maverick also recommended, “Addressing that financial gap that exists [i.e.,
lack of access to capital], teaching them how funding is acquired, what the process looks like,
what's required of them.” Maverick perceived a need for a business school curriculum tailored
for Latinx students should address other gaps that he perceived as existing in current education.
Alexis stated: “Business school did a good job at introducing us to mentors, but they weren't
necessarily aligned with us. They were not Latinos, so we did not identify with them.” Alexis
believed that her business school had done well in connecting students with mentors but that to
serve Latinx students adequately, it needed to connect them with mentors of the same ethnicity.
Thus, the participants cited gaps in their education as institutional barriers to entering into
entrepreneurship.
Discussion for Research Question 1
Theme 1 indicated that lacking access to capital hindered participants' entrance into
entrepreneurship. This finding confirmed previous literature concerning the context of this study.
As discussed in Chapter Two, a significant barrier to Latinx entrepreneurship has been access to
capital (Santellano, 2021). Historically, minority Americans have struggled to access equitable
bank loans and private capital due to discrimination or racism (Orozco & Perez, 2020). Many
Latinx families do not have the financial security to expend large quantities of personal capital
on new business ventures (Fairlie et al., 2020). In 2019, European American families had five
times more wealth than average Latin American families (Doering-White et al., 2021). Though
the United States has taken steps to address the blatant racism and discrimination experienced by
minority entrepreneurs regarding access to borrowed capital, it remains a challenge for new
business owners (Santellano, 2021). Even when there technically are pathways open for Latinx

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entrepreneurs to secure funding, many struggle with the perceptions related to capital access that
support beliefs that capital is not available to them, they are not qualified to receive it, and that
there is nobody in their social network able to help them navigate the capital acquisition process
(Orozco & Perez, 2020). Without access to loaned capital, Latinx entrepreneurs are required to
rely on personal credit cards, personal finances, and money borrowed from social networks
(Fairlie et al., 2020).
This condition is challenging from a practical standpoint because individuals may not be
able to raise sufficient capital (Fairlie et al., 2020; Santellano, 2021), as evidenced in the
response in the present study from Alejandro, whose reputation was damaged because of the
inability to raise the capital necessary to meet a client's needs. This situation results in
operational disparities between many Latinx businesses and similar businesses owned by
European Americans, who were able to borrow needed capital to enhance early and ongoing
operations. Responses from Seraphina and Rafael in my study referenced these disparities in
discussing how individuals from privileged backgrounds had readier access to capital to engage
in entrepreneurship, while individuals from less-privileged backgrounds more often needed to
struggle to obtain the necessary funds.
The second theme indicated that lower education levels hinder participants' entrance into
entrepreneurship. This finding also confirmed findings from the previous literature within the
study context. As discussed in Chapter Two, though no specific level of education is required for
entrepreneurship or successful entrepreneurial ventures (Pullés, 2020), owning a business
requires skills and management abilities that can be obtained through higher educational
attainment (Pullés, 2020). Numerous factors contribute to Latinx's lower educational attainment
levels (Hondageu-Sotelo et al., 2020). Other factors relate to the practical attributes of the Latinx

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community, such as a lower overall age (Hondageu-Sotelo et al., 2020; Lopez et al., 2018). As of
2016, 61% of the Latinx population was under 35. Over 81% of these individuals were born in
the United States, with equal access to public educational opportunities, and European
Americans. As this population ages, educational achievement is likely to increase.
Hondague-Sotelo et al. (2020) noted that Latinx in the Millennial Generation and
Generation Z are likely to achieve higher educational levels than their parents. However, the
relative youth of the population does not account for educational disparities in the Latinx
population (Fairlie et al., 2020). These challenges can make entrepreneurship difficult in the
Latinx community. The findings in this study were focused on specific gaps within the education
received by members of the Latinx community who had access to higher education, such as
practical information about how to start a business and access to mentorship.
Thus, the findings in this study indicated that even when members of the Latinx
community have access to business education, that education may not be sufficiently tailored to
meet their specific needs. This finding was also consistent with the previous literature.
Unfortunately, the literature suggests that there may be a mismatch between the skills taught in
most university settings and those helpful to students starting their business enterprises (Ahmad
et al., 2018; Samuel & Rahman, 2018). Training entrepreneurs requires a combination of handson learning and theoretical knowledge that has historically been challenging for educational
programs to pinpoint. Vocational schools and incubators focus on hands-on skills, while
university coursework focuses on foundational knowledge, which builds critical thinking
(Ahmad et al., 2018; Liguori & Winkler, 2020). Educational programs must combine both to
support future entrepreneurs successfully (Ahmad et al., 2018). Ahmad et al. (2018) concluded

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that a study of entrepreneurial programs covered such a broad range of topics that the end goal of
successfully operating a business was not evident in the course structure.
Results for Research Question 2
RQ2 sought to understand the personal and cultural factors that participants perceive as
influencing the inclination of Latinx individuals towards or away from entrepreneurial activities.
The context for this question included the finding from the previous literature that a personal and
cultural factor that can influence Latinx individuals to avoid entrepreneurial activity includes
negative perceptions of entrepreneurship in the Latinx community (Orozco, 2021). Risk
tolerance is critical to entrepreneurial intention (Cochran, 1965; Kogan & Wallach, 1960). Other
characteristics that enable entrepreneurship include innovation, initiative, taking risks, good
communication skills, creativity and self-confidence, proactivity, recognizing opportunities,
implementation plan, and swift and rational decision-making abilities (Kickul & Lyons, 2020;
Hisrich & Ramadani, 2017). Two themes emerged during data analysis to address this question:
Negative perceptions can lead to avoidance of entrepreneurship, and Personal and cultural
factors behind pursuing entrepreneurship.
Negative Perceptions Can Lead to Avoidance of Entrepreneurship
Eight participants reported negative perceptions of entrepreneurship and described those
perceptions as barriers to entering entrepreneurship. Seraphina expressed:
The risk is huge, and I feel like I work so hard. Being an entrepreneur, they say you
might fail, but you keep trying. But in order to do that, you need the money to invest, and
if you fail and you lose everything, it's a very real thing, you know, and I think it's what
prevents a lot of people, at least minorities, from just taking the leap.

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Seraphina expressed the negative perception that the risk associated with entrepreneurship was
“huge” and that an entrepreneur might “lose everything,” stakes that she described as
exceptionally high for minorities. Jax also said of the financial risk involved in entrepreneurship
for people in the Latinx community, “You’re risking your own money. And then you lose the
money. It’s scary, and I think a lot of people in our community don’t have a lot of money to lose.
So it’s a big barrier.” Thus, Jax also emphasized the risk to one’s own money, implicitly
referencing the lack of access to external investors’ capital, as addressed in RQ 1. Rafael talked
about: “I think we talk about the fear of failure, or, you know, just not having that right.” Rafael
seemed preoccupied with not having the right to fail when other people depended on him.
Alejandro said: “What discouraged me is the comfort of that paycheck every two weeks, right? I
was in the Marine Corps as an officer, got paid fairly well, and you really do take a big risk in
saying goodbye to that.” Alejandro’s concern was with the uncertainty associated with selfemployment and its potentially irregular or sporadic pay. Alejandro elaborated on this response:
In our community, specifically our parents, even with my mom, who isn't an
entrepreneur, they want to protect you. So, the minute you say, “I'm gonna go start this
[business],” it’s like, “Oh, won't you go to school and get a good job so you can make
good money?” And that's what they knew. That's why they came here, you know, and
starting something on your own, where you don't know if you're going to have money to
pay your rent the next month, that scares them more than it might scare you, and these are
tight-knit communities, tight-knit families.
Alejandro was citing the negative perceptions of entrepreneurship among his family, who wanted
him to earn a steady, stable income and did not believe that entrepreneurship offered this benefit.
Alexis also discussed: “For me, yeah, it was scary leaving the comfort of a steady paycheck. It

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was a bit difficult to leave that security blanket.” Thus, the fear of leaving the security of a
regular paycheck also weighed on Alexis. Carlos described: “One of the barriers a lot of our
entrepreneurs are faced with is haters. I had a couple [of] guys that just knocked it, never even
seen it, and they’re already knocking it.” Carlos appeared irked with how members of his
community disparaged entrepreneurship without having any firsthand knowledge of it. Kairos
reported: “I am the first [entrepreneur in my family], and it was very difficult. My parents, my
siblings advised me against it, cause it's scary.” Although their advice did not stop Kairos from
pursuing his entrepreneurial ambitions, it was significant to Kairos that family members advised
him against becoming an entrepreneur. Kairos said:
I think for me, it [the barrier] was more lack of self-efficacy, lack of support around me. I
wanted to save money and all that, but for me it was just more not having a support
system . . . and not believing in myself.
Kairos associated his family’s warnings with a lack of support and a lack of self-efficacy, which
were barriers to his entrepreneurship. Thus, negative perceptions of entrepreneurship, both
internalized in the participants themselves and in other members of their families and
communities, were a personal and cultural barrier to participants’ entering into entrepreneurship.
Building on the profound impact of negative perceptions within the Latinx community as
discussed in the findings above it is important to note that the participants highlighted a range of
concerns linked to risk, financial stability, and the prevailing mindset within their families and
communities. Seraphina, for instance, expressed apprehension about the significant risk
associated with entrepreneurship, emphasizing the potential loss of everything, particularly
impactful for minorities. Jax echoed this sentiment, underlining the financial risk as a barrier,
emphasizing the scarcity of funds in the Latinx community. The fear of failure was a recurring

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theme, as exemplified by Rafael's focus on the fear of not having the right to fail when others
depended on him. Alejandro provided insights into the protective nature of Latinx families, who
value the security of a steady income, perpetuating negative perceptions of entrepreneurship.
Alexis and Carlos discussed the fear of leaving the stability of a regular paycheck and facing
skepticism and criticism from within their communities. Kairos shared his experience of lacking
a support system and self-efficacy, emphasizing the influence of family warnings as a barrier to
his entrepreneurial journey. In essence, the negative perceptions identified in this study extend
beyond individual concerns, encompassing familial and cultural attitudes that contribute to
deterring Latinx individuals from pursuing entrepreneurship.
Personal and Cultural Factors Behind Pursuing Entrepreneurship
The theme of “Personal and Cultural Factors Behind Pursuing Entrepreneurship” serves
as a stark contrast to the previously discussed theme that focused on the discouragement of
entrepreneurship within the Latinx community. In this theme, participants articulate a set of
characteristics and influences that encourage the pursuit of entrepreneurial endeavors. It provides
a comprehensive understanding of the factors that shape positive attitudes toward
entrepreneurship among Latinx individuals.
This theme encompasses six subthemes, each shedding light on distinct personal and
cultural elements that contribute to the encouragement of entrepreneurship. The first subtheme,
“Independent Risk-Taker,” highlights how many participants associate entrepreneurship with
independence, fearlessness, and a willingness to take calculated risks. This subtheme reflects a
positive perception of the entrepreneurial spirit as embodying self-reliance and a bold approach
to challenges.

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The second subtheme, “Perseverance,” underscores the significance of resilience and the
ability to learn from failures in the pursuit of entrepreneurship. Participants view setbacks not as
obstacles but as valuable learning experiences that contribute to personal and professional
growth. This subtheme highlights the positive mindset of the participants, emphasizing the
transformative power of perseverance.
“Role Models or Mentors,” the third subtheme, demonstrates the influential role of
inspirational figures in fostering an entrepreneurial mindset. Participants draw inspiration from
successful individuals, often family members or mentors, who serve as guiding lights in their
pursuit of entrepreneurship. This subtheme emphasizes the positive impact of mentorship and
role models on shaping the aspirations of Latinx entrepreneurs.
The fourth subtheme, “Work Ethic,” accentuates the belief that a strong work ethic is
fundamental to entrepreneurial success. Participants express the view that entrepreneurship
demands discipline, grit, and daily motivation. This subtheme underscores the participants’
recognition of the substantial effort required to thrive in the entrepreneurial landscape.
“Perception That Becoming an Entrepreneur Is Easy,” the fifth subtheme, reveals a contrasting
perspective among some participants. While acknowledging the accessibility of starting a
venture, participants recognize the ongoing challenges of sustaining and achieving success in
entrepreneurship. This subtheme reflects a pragmatic understanding of the entrepreneurial
journey, acknowledging that initiation is straightforward, but long-term commitment is
demanding.
The final subtheme, “Soft Skills,” emphasizes the importance of interpersonal and
communication skills in entrepreneurship. Participants recognize the value of effective
communication, emotional intelligence, and the ability to pitch ideas. This subtheme highlights

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the multifaceted skill set participants perceive as essential for thriving in the entrepreneurial
realm.
In summary, the exploration of “Personal and Cultural Factors Behind Pursuing
Entrepreneurship” provides valuable insights into the positive influences and attributes that
contribute to a supportive environment for Latinx individuals contemplating entrepreneurial
endeavors. This theme enriches the understanding of the multifaceted attitudes and cultural
elements that shape a pro-entrepreneurial mindset within the Latinx community.
Independent Risk-Taker
Eight participants described personal factors behind entrepreneurship, including
independence and high-risk tolerance. Seraphina described entrepreneurs as “Independent” and
“Fearless.” Santiago described entrepreneurs as: “Somebody that believes in themselves enough
to be able to take that leap of faith and say, ‘Hey, I'm not gonna conform to a 9 to 5. And I'm
gonna go ahead and do my own thing, whatever that may be,’” or as independent and risktolerant. Santiago also described entrepreneurs as “Able to follow [their] dreams regardless of
what the outcome is, if you're successful or not,” thus describing them as risk-tolerant. Rafael
described entrepreneurs as: “To me, it's a special person, cause a lot of people just come to work
to [get a] paycheck and go home, right? And an entrepreneur is a person that takes the risk,”
Indicating their perceived risk-tolerance. Rafael also said of entrepreneurs: “I think it takes risk.
To me an entrepreneur is being comfortable being uncomfortable, like knowing that there's no
guaranteed paycheck,” indicating their perceived risk-tolerance. Rafael also described
entrepreneurs as: “It’s somebody who's not like in the middle of the pack, right? . . . like the kind
of person that thinks outside the box, not like cookie-cutter,” describing entrepreneurs as
independent. Kairos said: “What comes to mind is someone who's willing to go alone, take the

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road less traveled, and build something from scratch.” Thus, Kairos thought of an independent
builder when he imagined an entrepreneur.
Perseverance
Eight participants described personal factors behind the pursuit of entrepreneurship as
including perseverance. Participants expressed the importance of perseverance in saying that
they perceived failures as more critical than successes because failures were learning experiences
that could stimulate growth rather than occasions for giving up. Seraphina said of failures, “I
think failures are more important because it throws people to dive in, do more research, and learn
about what was the mistake. It leads you to different things that you weren't even looking for.”
Thus, Seraphina thought failures were potentially more important than successes because they
could stimulate unanticipated learning. Santiago described failure as: “I think people will learn
more from their failures because at that point they have some type of feedback to go back and
reflect on and fix.” Santiago thought of failure as food for reflection. Rafael said: “I think
competitive people learn from their failures more than successes because I think to me I already
know what I'm good at. I wanna know what I'm not good at, and that's what drives me, are my
shortcomings.” Rafael described failures as more educational than successes for competitive
people because they indicated areas for improvement. Kairos said that he believed he learned,
“More so from failures because it hurts,” indicating a perception of failure as a lesson that drew
attention to itself through the discomfort of pain it caused. Maverick agreed, saying, “Failures
are definitely life’s teaching moments. Failures are definitely, in my opinion, something that you
learn a lot more from,” suggesting that failures, unlike successes, were causes for correcting
previous preconceptions.
Role Models or Mentors

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Eight participants indicated that role models or mentors were a factor that promoted the
pursuit of entrepreneurship. Santiago described a successful real estate investor whose socialmedia posts he followed, adding, “He's pretty much a real estate investor that has built his
business over the course of the years. And his motivation initially was to help his family out
financially, and obviously that has grown exponentially.” Santiago appeared to identify strongly
with the successful investor who wanted to help his family and hope for the same success. Rafael
said: “With CU, the biggest thing they do, which is amazing, is just the network, to be able to be
connected to somebody who can help you and that wants to help you.” Rafael saw his school as
helpful in assisting him with networking to find a mentor. Alejandro said: “My mom, she is a
hustler. She is an entrepreneur. She had me at 16 years old, and she became the mayor of our
city. She's done every job you can think of. She can sell anything.” Alejandro saw his mother as
a role model and a hero, a woman who had succeeded in entrepreneurship and much more in a
milieu where most people did not even attempt it. Carlos indicated that the most significant
barrier he faced to becoming a successful entrepreneur had been his inability to find a mentor.
Kairos cited an entrepreneur he followed online named Gary Vee as an inspiration, saying, “His
parents were immigrants from Russia, and he started working at his dad's liquor store. And so for
him, his journey started very much with his parents, because his parents started an
entrepreneurial venture.” Like Santiago, Kairos appeared to identify strongly with the story of
the entrepreneur-influencer whose story he followed and to want to achieve the same success.
Maverick cited his mother as an inspiration, saying of her entrepreneurship, “She had to make
things and sell things in order to support our family, and later in life, as she grew older, she
became an entrepreneur through the support of a company.” Like Alejandro, Maverick admired
his mother and looked up to her as an inspiration.

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Work Ethic
Six participants described personal factors regarding the pursuit of entrepreneurship as
including a strong work ethic. Santiago said, “Doing your own thing in business, being an
entrepreneur, I think it takes a lot more discipline, a lot more grit . . . the grit to continue on, the
motivation to get up and actually do things every day.” Grit and discipline were how Santiago
described the work ethic that was needed to apply oneself to the job every day and work hard to
achieve success. Rafael described the needed work ethic as “It's a drive, I think. It's a passion, so
not wanting to fail, like push yourself to give it your all, to be the last one standing.” Rafael’s
sense that passion was needed revealed a belief that the work required to succeed in
entrepreneurship was immense but worthwhile. Carlos said, “Gotta put the work in. It doesn't
just happen by itself. Motivation. You know, you get that instilled in you, you develop that work
ethic,” indicating his belief that an entrepreneurial venture did not grow by itself or by inertia but
only through the dedicated effort of the entrepreneur. Alexis stated: “You are your own boss, so
you have to ensure that you are doing the work. No one’s gonna tell you to wake up and do the
work.” Alexis firmly believed that a strong work ethic was necessary for being one's own boss.
Perception That Becoming an Entrepreneur Is Easy
Four participants indicated that a personal factor behind pursuing entrepreneurship
included a perception that becoming an entrepreneur is easy. Seraphina said, “To make that
decision is easy to get it going. It's easy, I think.” However, it is important to note that Seraphina
only believed it was easy to 'get it going,' not to 'keep it going.' Alejandro agreed, saying,
“Starting is not as hard as you think. Don't overthink everything. Figure out what you wanna do.
Don't try to do everything. Figure out what service or product you're going to offer, and go for
it.” Alejandro agreed with Seraphina, though, believing it was easy to commit to

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entrepreneurship but hard to sustain that commitment over time, given the amount of work
involved. Alexis indicated that almost anyone could enter into entrepreneurship:
We see a lot of kids set up lemonade stands, and that's entrepreneurship. Or we could go
buy a product at Marshalls at a discounted rate, turn around, sell it on eBay. That's
entrepreneurship. So, I think it's not difficult to become an entrepreneur.
Alexis emphasized, though, that sticking with entrepreneurship was hard, and that achieving
significant success was even more difficult.
Soft Skills
Three participants described personal factors behind entrepreneurship as including soft
skills. Alejandro described communication skills as conducive to successful entrepreneurship:
“People skills, knowing about humans, human psychology, how to speak to people, and how to
speak differently to different types of people,” thus referencing communication skills and
emotional intelligence as advantages in entrepreneurship. Carlos said: “It's communication. You
could have the best idea, the $1,000,000 idea, but if you can't put it out there, it's dead in the
water. It's not gonna go anywhere. You gotta be able to pitch it.” Carlos referred to a specific
type of communication, the ability to pitch an idea. Alexis stated that the skillsets an
entrepreneur needs ar “Personal skills.”
Results for Research Question 2
As described above, a personal and cultural factor that could lead to avoidance of
entrepreneurship was negative perceptions of entrepreneurship in the participants, their families,
and their communities. Some negative perceptions of entrepreneurship persist among the Latinx
population, making entrepreneurial ventures challenging for interested individuals (Orozco,
2021). Among many Latinx populations, entrepreneurship is perceived to be risky, resulting in

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serious economic consequences and loss (Orozco, 2021). Though this perception is likely
accurate, new enterprises do not always succeed, and risk perception is greater among the Latinx
population than among European American non-Latinx peers. Factors that influence this
perception are likely justified, including less access to affordable capital, less familial ability to
serve as a safety net, and decreased support from investors compared to European American
non-Latinx individuals (Orozco, 2021). Cochran (1965) stated that cultural expectations
influence individuals' interest and ability to undertake entrepreneurial activities. Societies that
place an expectation of entrepreneurship will encourage individuals to own and operate a
business. Meanwhile, individuals who grew up in a society that did not expect individuals to own
a business due to a lack of interest or opportunity will produce fewer individuals who act on
entrepreneurial ambitions (Cochran, 1965). Latinx culture associates a high degree of risk with
entrepreneurship compared to European American culture (Orozco, 2021), consistent with the
participant's responses in this study.
Findings in this study indicated that risk tolerance is perceived as a characteristic that
leads individuals to pursue entrepreneurship. This finding confirmed findings from the previous
literature concerning the study context. Risk tolerance is critical to entrepreneurial intention
(Cochran, 1965; Kogan & Wallach, 1960). Starting a new business requires risk-taking, as an
economic return is never guaranteed (Kogan & Wallach, 1960). Higher-than-average risk
tolerance may be essential for Latinx entrepreneurs if entrepreneurship is considered
exceptionally risky in Latinx communities (Orozco, 2021). However, though personal factors
influence entrepreneurial ambition, Cochran (1965) emphasized that entrepreneurs are not
“super-normal” products of their culture in that they are not marked deviations from cultural

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norms. Instead, entrepreneurial individuals are a product of the environment in which they were
raised (Cochran, 1965).
Other skills critical to entrepreneurship in the literature include soft skills such as
communication, cooperation, team management, and leadership (Jones, 2018; Linton & Klinton,
2019). Notably, there was only a tiny amount of overlap between these skills and characteristics
and the characteristics indicated by participants in this study as conducive to the pursuit of
entrepreneurship. The other characteristics indicated by participants in this study were
communication, work ethic, perseverance, independence, access to role models or mentors, and a
perception that entering into entrepreneurship is easy. The perception that entering
entrepreneurship is easy did not contradict the negative perceptions of entrepreneurship. The
negative perceptions described above referred to consequences such as financial losses that
might be suffered after entrepreneurship, not entry barriers. Thus, the participants tended to see
the initial entrance into entrepreneurship as easy but the consequences of that accessible entrance
as potentially catastrophic. Communication, the entrepreneurial skill most widely attested in the
previous literature (Jones, 2018; Linton & Klinton, 2019), was not strongly attested in the
present study. Perseverance and independence, two of the traits most strongly attested in the
present study, may be considered an extension of the findings in the previous literature, in which
they were not found.
Summary
In response to Research Question 1, participants identified several barriers that hinder
Latinx individuals from entering entrepreneurship. The overarching theme revolved around the
discouragement of pursuing entrepreneurial activities within the Latinx community. Factors such
as limited access to financial and human capital, negative perceptions of entrepreneurship, and

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the absence of a conducive support system were recurrent themes. These barriers were often
rooted in both personal beliefs and cultural influences, creating a complex landscape that
impedes the entrepreneurial aspirations of Latinx individuals.
Research Question 2 delved into the factors influencing Latinx individuals toward or
away from entrepreneurial activities. The study revealed a nuanced understanding of the
interplay between personal and cultural elements that either encourage or discourage
entrepreneurship. Participants identified characteristics such as being an independent risk-taker,
perseverance, the influence of role models or mentors, a strong work ethic, a perception that
entrepreneurship is easy, and the importance of soft skills as positive factors that encourage
entrepreneurial pursuits within the Latinx community.
The reader should grasp a comprehensive understanding of the intricate dynamics
surrounding Latinx entrepreneurship. Despite facing substantial barriers, Latinx individuals
exhibit resilience and possess a myriad of positive attributes that contribute to their
entrepreneurial aspirations. The discouragement observed within the community is countered by
a rich tapestry of characteristics and influences that foster a pro-entrepreneurial mindset. The
study emphasizes the need for nuanced support systems, tailored educational initiatives, and a
shift in cultural perceptions to create an environment conducive to the flourishing of Latinx
entrepreneurship. Ultimately, the reader should recognize the multifaceted nature of the
challenges and opportunities faced by Latinx entrepreneurs and the importance of addressing
both personal and cultural dimensions to foster a more inclusive entrepreneurial landscape.
Chapter 5: Discussion
The problem addressed in this study was the discrepancy between the steadily increasing
Latinx population in the United States since 2000 and the comparatively slower growth in the

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number of Latinx entrepreneurs (Carpenter & Loveridge, 2021; Horst & Marion, 2019). There
were disparities between Latinx entrepreneurship and the entrepreneurship of European
Americans. Although entrepreneurship had benefits, many Latinx individuals perceived
challenges and barriers that discouraged them from pursuing business ownership (Siles &
Martinez, 2021). To address this problem, the purpose of this qualitative descriptive study was to
evaluate the perceptions, knowledge, and motivation of Latinx members that prevent them from
pursuing business ownership and perceived barriers to entering business markets.
The importance of this study was that by gaining additional information about the
knowledge, perceptions, and motivations of Latinx individuals, it would provide information to
educational and public program administrators about how to address inequities that result in
lower entrepreneurial activity. Providing greater economic opportunity for Latinx individuals
would assist in closing the economic gap that exists in the United States between the majority
and Latinx individuals (Horst & Marion, 2019). The study used a qualitative transcendental
phenomenological design based on data collected through semi-structured interviews. Data was
collected using a semi-structured interview protocol. Semi-structured interviews allow
respondents to discuss their perceptions and experiences while ensuring enough direction is
given to solicit answers closely related to the research questions (Longhurst, 2003). The setting
for this study was a large university in California. The sample for the present study was Latinx
alums who graduated from the California University. The sample consisted of 10 Latinx alums
who graduated from the California University interested in entrepreneurship and pursuing related
degrees, such as business and students who were not interested in entrepreneurship.
Thematic data analysis was conducted to generate the themes for discussion.

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Results highlighted that the lack of access to capital and education were barriers facing Latinx
entrepreneurs. Negative perceptions can lead to avoidance of entrepreneurship. Further, personal
and cultural factors that inform pursuing entrepreneurship include independent risk-taking,
perseverance, role models or mentors, work ethic, the perception that becoming an entrepreneur
is easy, and soft skills. This chapter discusses findings, recommendations, limitations,
implications for practice, future research, and conclusions.
Discussion of Findings
The findings were discussed based on research questions and themes described below.
Research Question 1
RQ1:What institutional/organizational barriers do participants perceive to prevent Latinx
members from entering entrepreneurship? The context for this question is that two main barriers
are known to influence the rates of Latinx entrepreneurs.
The findings indicated a lack of access to capital as a barrier to influencing Latinx into
entrepreneurship. The lack of access to capital was an institutional barrier to entrepreneurship.
However, individuals from wealthier backgrounds could network from a young age with others
who could give them access to capital. In comparison, individuals from poorer backgrounds did
not have access to those contacts. The statement above implies that without access to capital, it
would be difficult for the Latinx population to enter the world of entrepreneurship. The findings
confirm Kunkel's (1965) findings that limitations that might repress entrepreneurial activity
include a lack of access to capital or societal expectations about what kind of activities they
should engage professionally.
Lack of education was an institutional barrier to Latinx entering into entrepreneurship.
Some participants believed they would have benefitted from more one-on-one mentorship and

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mentorship in which the mentors had guidance on how to be a valuable resource to mentees. As a
result, the lack of mentorship and education programs about entrepreneurship made it
challenging to enter the field of entrepreneurship among Latinx graduates. The concept of lack of
education was also mentioned in other studies indicating that lack of education or lower
education levels impacts Latinx individuals interested in business ownership, affecting their
perceived and actual ability to successfully manage business ownership's financial, technical, and
managerial responsibilities (Theodos et at., 2021). Community-based organizations can provide
educational opportunities to young adults and other individuals interested in entrepreneurship
without requiring the high fees associated with higher education courses (Theodos et al., 2021).
The themes from relevant literature include the characteristics of Latinx entrepreneurship,
geographic location, and other factors. Regarding the characteristics of Latinx entrepreneurship,
research suggests that Latinx businesses play an essential role in the United States economy but
tend to be smaller than businesses run by other groups (Pisani & Morales, 2020). Characteristics
that influence the size and profitability of Latinx enterprises include the proprietor's age,
education level, income level, nativity, availability of capital, and gender (Medina & Schneider,
2018; Pisani & Morales, 2020). Additionally, Latinx individuals are more likely to start
businesses in specific geographic locations with larger populations and support systems or
industries in which Latinx individuals have traditionally competed successfully with more capital
outlay (Carpenter & Loveridge, 2021; Horst & Marion, 2019; Munoz & Spain, 2015).
Similar to the current study findings, previous research indicated that barriers exist that
influence rates of Latinx entrepreneurship, such as lack of capital or inadequate capital among
the Latinx community (Garnham, 2020; Santellano, 2021; Orozco, 2021). Limited access to
capital is a barrier to entrepreneurship, as Latinx individuals have less personal capital to expend

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on enterprises and less ability to borrow capital from financial lenders (Fairlie et al., 2020;
Santellano, 2021). Finally, Latinx individuals are more likely to have lower levels of educational
attainment, which influences business ownership and long-term business success (Lopez et al.,
2018). People with lower levels of education have a lower understanding of the risks and
requirements for entrepreneurs to succeed.
The findings indicated that a lack of access to capital hindered participants’ entrance into
entrepreneurship. This finding confirmed findings from the previous literature concerning the
context of this study. Past research indicates that access to capital is a significant barrier to
Latinx entrepreneurship (Santellano, 2021). Historically, minoritized Americans have struggled
to access equitable bank loans and private capital due to discrimination or racism (Orozco &
Perez, 2020). Many Latinx families do not have the financial security to expend large quantities
of personal capital on new business ventures (Fairlie et al., 2020). Nevertheless, European
American families were found to possess five times more wealth and education compared to the
average Latin American families (Smith et al., 2022).. Such an advantage makes it difficult to
gain their strength and positive attitude towards entering the field of entrepreneurship.
In addressing the lack of capital among minority communities for doing business, the
United States has taken steps to address the blatant racism and discrimination experienced by
minority entrepreneurs regarding access to borrowed capital. However, it remains challenging
for new business owners (Santellano, 2021). Even if there are pathways open for Latinx
entrepreneurs to secure funding, many struggle with the perceptions related to capital access that
support beliefs that capital is not available to them, they are not qualified to receive it, and that
there is nobody in their social network able to help them navigate the capital acquisition process
(Orozco & Perez, 2020). Without access to loaned capital, Latinx entrepreneurs must rely on

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credit cards, personal finances, and finances borrowed from social networks (Fairlie et al., 2020).
This condition is challenging from a practical standpoint because individuals may not be able to
raise sufficient capital (Fairlie et al., 2020; Santellano, 2021), as evidenced in the response in the
present study from P4, whose reputation was damaged because of the inability to raise the capital
necessary to meet a client’s needs. This situation results in operational disparities between many
Latinx businesses and similar businesses owned by European Americans, who were able to
borrow needed capital to enhance early and ongoing operations. Responses from P1 and P3 in
the present study referenced these disparities in discussing how individuals from privileged
backgrounds had available access to capital with which to engage in entrepreneurship, while
individuals from less-privileged backgrounds more often needed to struggle to obtain the
necessary funds.
Research findings also indicated that lower education levels hinder participants’ entrance
into entrepreneurship. This finding also confirmed findings from the previous research, which
indicated that though no specific level of education is required for entrepreneurship or successful
entrepreneurial ventures (Pullés, 2020), owning a business requires skills and management
abilities that can be obtained through higher educational attainment (Pullés, 2020). Many factors
contribute to Latinx's lower educational attainment levels (Hondageu-Sotelo et al., 2020). Other
factors relate to the practical attributes of the Latinx community, such as a lower overall age
(Hondageu-Sotelo et al., 2020; Lopez et al., 2018).
Lack of education can make entrepreneurship difficult in the Latinx community. The
findings in Fairlie et al. (2020) study were focused on specific gaps within the education received
by members of the Latinx community who had access to higher education, such as practical
information about how to start a business and access to mentorship. Thus, the finding in this

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study indicated that even when members of the Latinx community have access to business
education, that education may not be sufficiently tailored to meet their specific needs (Fairlie et
al., 2020). This finding was also consistent with the previous literature. Unfortunately, the
literature suggests that there may be a mismatch between the skills taught in most university
settings and those helpful to students starting their business enterprises (Ahmad et al., 2018;
Samuel & Rahman, 2018).
The training of entrepreneurs necessitates a synthesis of practical experiential learning
and theoretical understanding, a fusion that has historically posed a challenge for educational
initiatives to precisely identify. Vocational schools and incubators predominantly emphasize the
cultivation of practical skills, while university coursework places a primary focus on imparting
foundational knowledge, thereby fostering critical thinking skills (Ahmad et al., 2018; Liguori &
Winkler, 2020). The integration of both these elements becomes imperative in order to
effectively nurture aspiring entrepreneurs (Ahmad et al., 2018).
Ahmad et al. (2018) conducted an exhaustive examination of entrepreneurial programs,
revealing that these programs encompass a diverse array of topics. However, the ultimate
objective of proficiently managing and operating a business does not manifest clearly in the
structure of these courses. This lack of clarity in course design emerges as a hindrance to
entrepreneurship, particularly within minority communities such as the Latinx population.
RQ2 Findings: Unraveling the Complex Tapestry of Personal and Cultural Factors Shaping
Latinx Entrepreneurship
In response to the pivotal Research Question 2 (RQ2), this section meticulously explores
the nuanced personal and cultural factors perceived by participants that either propel or hinder

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Latinx individuals from engaging in entrepreneurial endeavors. The thematic analysis of
participant responses sheds light on negative perceptions of entrepreneurship. It delves into their
intricate nature, characterizing them as formidable barriers that significantly impede entry into
the entrepreneurial sphere.
Negative Perceptions as Deep-Seated Personal and Cultural Barriers
A recurring and salient theme surfaces as participants articulate unfavorable views of
entrepreneurship, viewing these perceptions as deeply ingrained barriers. Internally rooted within
individuals and resonating within familial and communal circles, these negative perceptions pose
substantial impediments to initiating entrepreneurial pursuits. Community skepticism, devoid of
firsthand entrepreneurial experience, coupled with apprehensions about forgoing the security of a
regular paycheck, collectively contribute to a pervasive belief among Latinx individuals that
entrepreneurship is an inherently high-risk venture.
Despite documented entrepreneurial success within the Latinx community (Orozco,
2021), persistent risk perceptions endure, casting a shadow on entrepreneurial aspirations.
Factors contributing to this perception encompass limited access to affordable capital, a dearth of
familial safety nets, and diminished support from investors compared to non-Latinx counterparts
(Orozco, 2021). The acknowledgment and strategic addressing of these challenges become
imperative, focusing on mitigating risk imbalances and fostering support mechanisms tailored to
the unique needs of Latinx individuals venturing into business.
Individual Factors Propellants and Hindrances in Entrepreneurial Pursuits
Beyond the negativity surrounding entrepreneurship, participants illuminate individual
factors that either propel or discourage entrepreneurial pursuits among Latinx individuals. While
independence and high-risk tolerance emerge as motivators in this study, some participants

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underscore the pivotal role of perseverance, framing failures as invaluable learning experiences
conducive to personal and professional growth.
Consistent with existing literature, education is a pivotal factor in shaping entrepreneurial
inclination, with educators playing a vital role in imparting critical thinking skills and enhancing
self-efficacy (Neck & Corbett, 2018; Ramalho et al., 2022; Samuel & Rahman, 2018). The
findings also substantiate the influence of role models or mentors on entrepreneurial pursuits,
underscoring the necessity for mentorship programs to encourage and support aspiring
entrepreneurs within the Latinx community actively.
Soft Skills and the Landscape of Entrepreneurial Success
The significance of soft skills, encompassing effective communication, creativity,
cooperation, team management, and leadership abilities, in entrepreneurial success becomes
apparent in the findings (Jones, 2018; Linton & Klinton, 2019). Participants' emphasis on
perseverance and independence as critical traits aligns seamlessly with existing literature,
presenting an extension of these findings within the unique context of the current study.
Cultural Expectations and the Crucial Role of Risk Tolerance
As posited by Cochran (1965), cultural expectations emerge as influential in shaping
entrepreneurial pursuits. Societies fostering an entrepreneurial ethos are more likely to witness
individuals actively engaging in business activities. In contrast, societies with limited
expectations for entrepreneurial endeavors tend to produce fewer individuals pursuing such
ambitions.
Risk tolerance surfaces as a defining characteristic for those inclined towards
entrepreneurship, aligning seamlessly with established literature emphasizing its critical role in
entrepreneurial intention (Cochran, 1965; Kogan & Wallach, 1960). The need for higher-than-

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average risk tolerance, particularly within the Latinx context, underscores the perceived
heightened risks associated with entrepreneurship within this community (Orozco, 2021).
Divergence from Previous Literature
While soft skills such as communication, cooperation, and leadership have consistently
featured in prior research (Jones, 2018; Linton & Klinton, 2019), the present study uncovers a
nuanced departure. Limited overlap was observed between these skills and those emphasized by
participants. Characteristics such as communication, work ethic, perseverance, independence,
access to role models or mentors, and perception of easy entry into entrepreneurship emerge as
pivotal factors in participants' narratives, signaling a departure from broader literature.
The nuanced findings of RQ2 underscore the intricate interplay of personal and cultural
factors shaping Latinx individuals' perceptions of and engagement with entrepreneurship. The
negative perceptions entrenched within communities necessitate targeted interventions to
alleviate barriers, all while acknowledging the unique constellation of factors influencing
entrepreneurial decisions within the Latinx population. As we navigate this complex tapestry,
understanding and addressing these factors are paramount for fostering a more inclusive and
supportive entrepreneurial landscape within the Latinx community.
Recommendations for Practice
The demographic shift in the United States has seen a steady rise in the Latinx population
since 2000, constituting approximately 18% of the total population. However, the growth of
Latinx entrepreneurs has not kept pace with this increase (Carpenter & Loveridge, 2021; Horst &
Marion, 2019). Merely 14% of the 12.2 million total business owners in the United States are
U.S.-born Latinx, emphasizing a significant gap in entrepreneurial activities within the Latinx
community (Fairlie, 2018; U.S. Census, 2022). To address this disparity and potential wage and

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opportunity gaps, it is imperative to identify and overcome the barriers hindering Latinx
entrepreneurship (Amende et al., 2021).
The multifaceted nature of Latinx entrepreneurship, influenced by factors such as
income, education, generational status, and geographic location, necessitates targeted
interventions (Carpenter & Loveridge, 2021; Pisani et al., 2017). Motivations for Latinx
individuals to pursue entrepreneurship include limited alternative labor options, increased
economic opportunities, and enhanced societal status (Regalado, 2020). Despite these positive
aspects, there remains a substantial gap in the participation of Latinx individuals in
entrepreneurship compared to their European American counterparts (Orozco, 2021). This study
sought to address this gap in the literature by examining the perceptions, knowledge, and
motivations of Latinx individuals in relation to business ownership and the perceived barriers to
entry.
The study's conceptual framework, drawing on Cochran's (1965) and Kunkel's (1965)
theories of entrepreneurship and entrepreneurship supply, revealed gaps in Latinx individuals'
characteristics, societal expectations, and barriers associated with entry into business ownership.
These gaps highlight the need for targeted recommendations to bridge the knowledge and
organizational influence gaps identified in the study.
Recommendation 1: Implementing a Social Learning Theory-Based Curriculum to
Enhance Entrepreneurial Development among Latinx Students
Within the context of this study, where eight out of 10 interviewed participants
highlighted a significant lack of entrepreneurial mentorship and immersive learning
opportunities, the recommendation is to introduce a curriculum based on Social Learning Theory
(SLT). According to Bandura (1965), SLT emphasizes learning through observation, imitation,

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and modeling, bridging the realms of behaviorist and cognitive learning theories. The
incorporation of SLT in entrepreneurial education recognizes the crucial social element,
advocating for immersive training that includes practical exercises, feedback mechanisms,
positive reinforcement, and observational learning to stimulate behavioral change (Muro &
Jeffrey, 2008; Nabavi, 2012).
This recommendation aligns with research findings that highlight the importance of
mentorship and experiential learning in developing entrepreneurial skills (Hisrich & Brush,
2018). By integrating SLT principles into the curriculum, educational institutions can create a
dynamic learning environment that mirrors real-world entrepreneurial challenges. Practical
exercises and observation of successful entrepreneurial practices can provide students with
invaluable insights, enhancing their ability to navigate the complexities of starting and managing
a business (Nabavi, 2012).
Implementation Recommendations for Colleges.
● Curriculum Integration: Integrate SLT-based modules into existing business and
entrepreneurship courses, focusing on practical applications, case studies, and mentorship
opportunities.
● Experiential Learning Platforms: Establish experiential learning platforms, such as
entrepreneurship labs or incubators, where students can apply theoretical knowledge in
real-world scenarios under the guidance of experienced mentors.

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● Collaborative Initiatives: Foster partnerships with local businesses, industry
professionals, and entrepreneurship networks to facilitate mentorship programs,
internships, and networking events.
● Feedback Mechanisms: Implement regular feedback mechanisms to evaluate the
effectiveness of the SLT-based curriculum and make necessary adjustments to enhance
its impact.
Implications for Entrepreneurial Gap. The lack of access to quality entrepreneurial education
exacerbates the existing entrepreneurial gap, particularly among Latinx communities. Without
adequate educational support, aspiring entrepreneurs may face heightened challenges in
acquiring essential skills and knowledge, widening the gap between those with and without
educational resources (Shane, 2003). By implementing SLT-based curricula, colleges can play a
pivotal role in narrowing this gap, equipping Latinx students with the tools and experiences
necessary to thrive in the entrepreneurial landscape.
Recommendation 2: Activating Leadership Support for FGA Latinx Advancement with a
Comprehensive Approach
The findings of the study underscore the prevailing sentiment among 80% of interview
participants that First-Generation Americans (FGA) lack a demonstrable commitment to
diversity efforts conducive to Latinx advancement. Addressing this challenge necessitates the
implementation of a multi-pronged approach aimed at fostering effective cultural systems within
organizational structures. Leadership support is pivotal in creating an inclusive environment, and
to this end, various strategies are recommended.
Firstly, fostering individual and supervisory accountability is essential. Leaders should
actively engage in promoting diversity efforts and cultivate an environment where inclusivity is

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not merely a concept but an ingrained aspect of organizational culture (Gelfand et al., 2004).
This involves leaders personally championing diversity initiatives, fostering open
communication channels, and actively participating in activities that promote cultural
understanding.
Secondly, a shared sense of accountability should extend across socioeconomic status
(SES) and leadership teams. By incorporating diversity and inclusion criteria into leadership
performance planning and evaluation processes, organizations can incentivize leaders to
prioritize and actively contribute to Latinx advancement initiatives (Prieto et al., 2009). This
includes integrating diversity metrics into key performance indicators, thereby linking leadership
success to the organization's commitment to fostering an inclusive environment.
In terms of implementation at educational institutions, such as colleges, it is crucial to
weave these principles into the fabric of the academic environment. Colleges should consider
revising leadership development programs to include diversity and inclusion training,
emphasizing the importance of creating an inclusive atmosphere for all students, including FirstGeneration Americans of Latinx descent. Furthermore, fostering collaborations between
leadership teams and diversity-focused student organizations can facilitate a holistic approach to
cultural awareness and inclusivity on campuses.
The implications of neglecting these recommendations are substantial, particularly in the
context of education. The absence of educational initiatives centered on diversity and inclusion
not only perpetuates stereotypes and biases but also widens the entrepreneurial gap. Research
suggests that education plays a pivotal role in mitigating inequality, and the lack thereof
exacerbates existing disparities (Chetty et al., 2014). Thus, by integrating these recommendations
into educational practices, colleges can contribute significantly to narrowing the entrepreneurial

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gap and fostering an environment where all students, regardless of their background, have equal
opportunities for success.
Recommendation 3: Foster a Culture of Entrepreneurship on Campus
In order to catalyze Latinx entrepreneurship, the dissertation recommends the
implementation of a comprehensive strategy that encompasses various facets of campus life.
This holistic approach involves the establishment of tailored resources and educational
opportunities explicitly designed for Latinx students. Such initiatives aim to address the unique
challenges and requirements that Latinx individuals face in their entrepreneurial pursuits.
Building a supportive community within the campus environment is crucial to create a sense of
belonging and encouragement among Latinx students, promoting a conducive atmosphere for
entrepreneurial exploration.
One key aspect of fostering this culture of entrepreneurship is ensuring equitable access
to funding. Latinx entrepreneurs often encounter difficulties in securing financial support for
their ventures (Amende et al., 2021). By establishing mechanisms that facilitate access to
funding opportunities specifically tailored for Latinx students, colleges can play a pivotal role in
mitigating this barrier and empowering aspiring entrepreneurs.
Promoting diversity and inclusiveness within campus entrepreneurship programs is
essential. Representation matters, and ensuring a diverse group of entrepreneurs in programs and
events can inspire Latinx students and provide them with relatable role models (Regalado, 2020).
This inclusion not only strengthens the resolve of Latinx students to pursue entrepreneurship but
also enriches the overall entrepreneurial ecosystem.
Supporting and promoting the utilization of incubators and accelerators geared towards
Latinx entrepreneurs can further enhance the entrepreneurial landscape on campus. These

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platforms can provide valuable mentorship, networking opportunities, and resources tailored to
the specific needs of Latinx entrepreneurs (Pisani et al., 2017). Emphasizing cultural strengths in
entrepreneurship programs can also contribute to creating an environment that values and
leverages the unique perspectives and experiences of Latinx individuals in the business world.
Encouraging networking among Latinx students and connecting them with successful Latinx
entrepreneurs can provide invaluable insights and mentorship. Colleges can facilitate events,
workshops, and networking sessions that bridge the gap between aspiring entrepreneurs and
established Latinx business leaders.
Lastly, the recommendation underscores the importance of continuous education and skill
development opportunities. Colleges should strive to offer ongoing programs that equip Latinx
students with the necessary skills and knowledge to thrive in the dynamic entrepreneurial
landscape. This includes staying updated on emerging trends, technological advancements, and
market dynamics, ensuring that Latinx entrepreneurs remain competitive and adaptable in their
ventures.
Implementation of these strategies on college campuses not only addresses the immediate
challenges faced by Latinx entrepreneurs but also has broader implications. The lack of
education and support in entrepreneurship at the college level risks perpetuating the existing
entrepreneurial gap within the Latinx community. Without dedicated efforts to foster a culture of
entrepreneurship, the disparities in access to resources and opportunities may only widen.
Therefore, it is imperative for colleges to take proactive measures in integrating these
recommendations into their programs, promoting an inclusive and supportive environment that
empowers Latinx students to thrive in entrepreneurship.

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Recommendation 4: Embrace Technological Business Innovation for Latinx
Entrepreneurship
In tandem with traditional business strategies, embracing technological innovation is
crucial for fostering success among Latinx entrepreneurs. The integration of digital platforms
and the capitalization of the Internet can significantly impact the growth and sustainability of
Latinx-owned businesses (Ratten, 2020; Zellweger et al., 2011).
Digital entrepreneurship has emerged as a transformative force in the business landscape,
providing Latinx entrepreneurs with opportunities to reach broader audiences, enhance
operational efficiency, and explore innovative business models (Zellweger et al., 2011). For
instance, leveraging e-commerce platforms, social media, and digital marketing can enable
Latinx entrepreneurs to connect with diverse consumer bases, expand market reach, and establish
a robust online presence (Villanueva et al., 2017).
Moreover, technological solutions can address Latinx entrepreneurs' challenges, such as
limited access to traditional financing channels. Crowdfunding platforms, for example, offer an
alternative avenue for funding, allowing entrepreneurs to showcase their projects to a global
audience and garner financial support (Ordanini et al., 2011).
However, it is crucial for educational institutions and support organizations to facilitate
technology integration into entrepreneurship programs, ensuring that Latinx entrepreneurs
acquire the necessary digital skills and knowledge (Soto-Acosta & Popa, 2017). Collaborative
efforts between academia, industry, and government can create initiatives, workshops, and
training programs to empower Latinx entrepreneurs to navigate and leverage technological
advancements effectively.

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In conclusion, incorporating technological business innovation into the entrepreneurial
landscape is essential for Latinx individuals aiming to establish and grow successful businesses.
By staying abreast of digital trends and capitalizing on internet resources, Latinx entrepreneurs
can overcome traditional barriers and position themselves competitively in the contemporary
business environment.
Limitations and Delimitations
The present study acknowledges certain limitations and delimitations inherent in its
design and execution (Merriam & Tisdell, 2015). Firstly, reliance on self-reported data
inherently narrows the study's scope (Parry et al., 2021). Second, the study is susceptible to the
influence of participants' inherent biases and subjective perceptions regarding entrepreneurship,
presenting a challenge in distinguishing between participant perspectives and objective facts
(Delgado-Rodrguez & Llorca, 2004). Additionally, the study's generalizability is constrained to
the specific population under investigation (Yin, 2017), limiting the transferability of findings to
other groups or populations.
The study specifically focused on men and women of Latinx descent, individuals enrolled
for a minimum of three years in a business or MBA program, and a distinct group enrolled in any
discipline. The study sample was further delimited to individuals with an interest in business
ownership and those without. While this deliberate selection ensured a comprehensive
representation of Latinx viewpoints on business ownership, it simultaneously restricted the
external validity of the study, making it challenging to extend the findings to other populations
with different entrepreneurial inclinations or from diverse minority communities (Merriam &
Tisdell, 2015).

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Moreover, the study's exclusive concentration on the Latinx community emphasizes that
the results cannot be universally applied to other demographic groups, as diverse communities
may hold distinct perspectives on entrepreneurship. The population was further narrowed to men
and women of Latinx descent, those with a minimum of three years of enrollment in a business
or MBA program, and another group enrolled in any discipline, posing a potential threat to both
internal and external validity by limiting the transferability of results to broader populations.
Furthermore, the study sample's demarcation into groups interested and disinterested in
business ownership facilitated a nuanced understanding of Latinx perspectives on
entrepreneurship. Yet, caution is warranted in extrapolating these insights to other communities
irrespective of their entrepreneurial inclinations, as the study sample's characteristics may not be
universally representative (Merriam & Tisdell, 2015).
Implications for Practice
The findings provide important insight for economic policymakers to implement various
educational programs to enhance entrepreneurship among minority communities such as the
Latinx community. This study was significant because it provides new information about Latinx
students regarding the perceptions, knowledge, and motivation that may prevent them from
pursuing entrepreneurial ambitions. Members of the Latinx community make up almost 20% of
the United States population, but they represent a small portion of business owners (Carpenter &
Loveridge, 2021). Though comparatively few Latinx own and operate their businesses, the
economic activity of those businesses is important and influential to urban, suburban, and rural
communities across the country (Pullés, 2020). Thus, educational programs would improve their
involvement in entrepreneurship.

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Latinx community entrepreneurs can use this study finding to understand various factors
to enhance entrepreneurship, such as soft skills, including effective communication. At a micro
level, Latinx business owners create critical income in local economies. As many other groups of
Americans moved away from smaller rural communities, Latinx individuals moved into rural
areas (Lichter & Johnson, 2020). They started businesses that provide critical services to
individuals and support the local economy. Without these new businesses, many rural
communities in the United States would struggle to produce critical goods and provide
employment for residents (Dávila et al., 2020). This study was significant because it explored
how to support Latinx entrepreneurs who later support local economies and provide
employment.
Latinx business owners can apply these findings to implement mentorship opportunities
to educate students interested in entrepreneurship. Latinx business owners typically start
businesses in lower-income rural communities and small towns, serving an essential role in
community revitalization and stabilization (Amarante, 2020; Robles et al., 2020). To support
Latinx business owners is to support these communities, making Latinx businesses' success
critical to both practice and academic research (Farrell et al., 2019).
These study findings are critical for higher learning institutions that may need to provide
inclusive entrepreneurial education to enable the entrance of minority communities such as the
Latinx to entrepreneurship. Statistically, Latinx are less likely to achieve high educational levels
than European Americans and have less access to personal and loaned capital (Pisani et al.,
2017). Though these factors would reasonably influence Latinx ability and willingness to pursue
business ownership, it is vital to understand how Latinx individuals who obtained higher
education levels perceive business ownership (Orozco, 2021).

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Future Research
This study has opened avenues for future research by identifying key aspects that were
not fully explored. One such avenue pertains to the roles of communication and perseverance in
shaping entrepreneurship within the Latinx community. While this study did not delve into these
aspects, it is imperative for future researchers to investigate how communication and
perseverance contribute to and enhance entrepreneurial success among Latinx individuals.
Understanding these dynamics is crucial, as other essential entrepreneurial skills, including
communication, cooperation, team management, and leadership abilities, have been identified as
significant factors in entrepreneurial success (Jones, 2018; Linton & Klinton, 2019).
Communication and perseverance play pivotal roles in navigating the challenges and
uncertainties inherent in entrepreneurship. Future research can explore how cultivating these
skills may positively impact the Latinx entrepreneurial experience, fostering a deeper
understanding of the socio-cultural dynamics that influence entrepreneurial outcomes within this
community.
The reliance on personally reported data in the current study, influenced by participants'
prejudices and perceptions, presents a methodological constraint that future researchers should
address. A shift towards a quantitative study design is recommended, as it allows for statistical
analysis of data, potentially bolstering the reliability of findings by mitigating the subjectivity
associated with self-reported information (Delgado-Rodrguez & Llorca, 2004). Moreover,
exploring disaggregated data, focusing on Latinx individuals from diverse immigrant
backgrounds or regions, can unveil significant variations in entrepreneurial experiences. This

117
nuanced approach holds promise for offering a more comprehensive and detailed understanding
of the complexities within the Latinx entrepreneurial landscape.
Furthermore, future studies should extend their scope beyond the Latinx community to
include other minority communities facing entrepreneurial challenges rooted in a lack of capital
and educational opportunities. By conducting comparative analyses, researchers can identify
commonalities and distinctions in the entrepreneurial struggles among various minority groups.
This expansion beyond the Latinx community acknowledges the uniqueness of each
community's views and perceptions concerning entrepreneurship, contributing to a more
inclusive and nuanced understanding of minority entrepreneurship.
The study's limitations, including its focus on specific demographics and educational
backgrounds, present opportunities for future research to refine and expand its scope. By
deliberately incorporating variations in demographic groups, educational backgrounds, and
disciplines within the Latinx community, future studies can contribute more robust insights into
the intricacies of Latinx entrepreneurship. Although these specific parameters may have posed
challenges to the findings' external validity, they offer valuable opportunities for future research
to explore and delineate the multifaceted dimensions of entrepreneurship within the Latinx
community.
Conclusions
Despite more benefits of entrepreneurship, many Latinx individuals perceive challenges
and barriers that discourage them from pursuing business ownership, and the number of Latinx
entrepreneurs has not increased at the same rate. There were disparities between Latinx
entrepreneurship and the entrepreneurship of European Americans. The purpose of this study

118
was to evaluate the perceptions, knowledge, and motivation of Latinx members that prevent
them from pursuing business ownership and perceived barriers to entering business markets. The
importance of this study was that by gaining additional information about the knowledge,
perceptions, and motivations of Latinx individuals, it would provide information to educational
and public program administrators about how to address inequities that result in lower
entrepreneurial activity.
This study provides greater economic opportunity for Latinx individuals that would assist
in closing the economic gap that exists in the United States between the majority and Latinx
individuals (Horst & Marion, 2019). The study has highlighted the lack of access to capital and
education as barriers facing Latinx entrepreneurs, making them experience low passion and the
need to own businesses. We can learn from this study that negative perceptions can lead to
avoidance of entrepreneurship because of fear of the risks associated with entrepreneurship and
the related high capital outlay. It can also be learned that personal and cultural factors can be
behind pursuing entrepreneurship, including independent risk-taking, perseverance, role models
or mentors, work ethic, the perception that becoming an entrepreneur is easy, and soft skills
individuals possess, including communication skills. Further studies are needed to understand
how soft skills may affect perceptions towards entrepreneurship among minority communities
such as Latinx and African American communities.

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Appendix A: Interview Protocol
Hi, my name is Hector. First, I want to thank you for agreeing to be interviewed. I really
appreciate it. Did you have a chance to read over the Consent Form information? Do you
have any questions about it that I can answer for you? Before we begin, I would like to
confirm that you are agreeing to be interviewed and that it is ok for me to make an audio
tape of the interview. Is that ok with you?
Possible follow-up questions:
1. That is interesting, can you tell me more about that?
2. What I heard was ____________. Is that what you meant, or did I misunderstand?
3. Do you mean _______________?
4. Can you tell me a story about that?
5. Can you explain that in more detail?
6. It sounds like . . . . . .
7. Is there anything else you would like to say about that?
8. So you are saying ______________. Is that right?
Interview questions: (some authors suggested a few general questions to help them feel
comfortable before more specific questions. No one in particular though. Active listening
was also suggested).
1. You are pursuing a degree in business is that correct?
2. Would you tell me how far you are into the business program? At the beginning, in the
middle, or near the end?

140
3. Have you thought about what you want to do after you graduate, and could you explain it
to me?
4. What does success look like to you?
5. Do you think people learn more from their successes or failures? Why is that?
6. What do you think it takes to be an entrepreneur?
7. Can you give me as much detail as possible about what comes to mind when I say the
word entrepreneur?
8. What skills do you think would be best for an entrepreneur to have?
9. Under what if any circumstances might you seriously consider becoming an
entrepreneur?
10. If you had enough money to do anything you wanted after you graduated, what would
you do?
11. Is there an entrepreneur you admire? What do you think motivated them to become an
entrepreneur?
12. Have you taken any classes about entrepreneurship to learn how to own your own
business yet or do you plan to take some? Why or why not?
13. (if they took a class) Can you tell me about some of the things you learned in the class or
classes you took if there is more than one? (if they have not taken a class but plan to) Is
there anything in particular you want to learn in a class about entrepreneurship? (if they
do not plan on taking a class) Can you tell me what it is that has caused you to decide not
to consider being an entrepreneur? Anything in particular?
14. Do you think it would be difficult or relatively easy to become an entrepreneur? Can you
explain why that is?
15. What do you think it takes for someone to become an entrepreneur?
16. Is there anything in particular that discourages you from becoming an entrepreneur?
17. Is there anything in particular that motivates you to become an entrepreneur?
18. What would you say if I told you that Latinx individuals own and play significant roles in
the operation of large corporations, including Kellogg, Sanchez Oil and Gas, IBC Bank,
and ATR International (Pisani & Perez, 2020).

141
19. Classic examples of small informal companies turning into major economic players
include Nike and Apple (Pisani & Morales, 2020). How likely do you think that is for an
entrepreneur?
20. Do you have any questions about what we talked about before we close the interview?
21. Is there anything else that you want to say before we close the interview?

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Asset Metadata

Creator Cabrera, Hector (author)

Core Title The underrepresentation of Latinx in entrepreneurship and the identification of social, societal, and institutional barriers to close the gap

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Degree Conferral Date 2023-12

Publication Date 01/25/2024

Defense Date 01/11/2024

Publisher Los Angeles, California (original), University of Southern California (original), University of Southern California. Libraries (digital)

Tag barriers to entrepreneurship,closing the gap,diversity in business,entrepreneurial barriers,entrepreneurship,entrepreneurship diversity gap,entrepreneurship gap,entrepreneurship inequality,inclusion in entrepreneurship,institutional barriers,institutional challenges in entrepreneurship,Latinx,Latinx business studies,Latinx entrepreneurs,Latinx entrepreneurship barriers,Latinx in business,Latinx underrepresentation,minority entrepreneurs,OAI-PMH Harvest,social barriers,social challenges in entrepreneurship,societal barriers,societal challenges in entrepreneurship,underrepresentation

Format theses (aat)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Kim, Esther (committee chair), Tobey, Patricia Elaine (committee member), Turrill, Robert (committee member)

Creator Email hectorc@marshall.usc.edu,hectorcabrera619@icloud.com

Permanent Link (DOI) https://doi.org/10.25549/usctheses-oUC113810128

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Internet Media Type application/pdf

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