Determinants of business success: an examination of Asian-owned businesses in the USA |
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Authors: | Alicia M Robb Robert W Fairlie |
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Institution: | (1) University of California, Santa Cruz, 59 Driftwood Court, San Rafael, CA 94901, USA;(2) Department of Economics, University of California, Santa Cruz, Engineering 2 Building, Santa Cruz, CA 95064, USA |
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Abstract: | Using confidential microdata from the US Census Bureau, we investigate the performance of Asian-owned businesses. Using regression
estimates and a special non-linear decomposition technique, we explore the role that class resources, such as financial capital
and human capital, play in contributing to the relative success of Asian businesses. We find that Asian-owned businesses are
more successful than white-owned businesses for two main reasons—Asian owners have high levels of human capital and their
businesses have substantial start-up capital. Using detailed information on both the owner and the firm, we estimate the explanatory
power of several additional factors.
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Keywords: | Asian Entrepreneurship Business outcomes |
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