Black Success in a Predominantly White Industry: The Role of Marginalized Professional Capital

• In Event: 30420 - Section on Racial and Ethnic Minorities Roundtables
  In Refereed Roundtable (60 minute): Table 3: Racial Capitalism, Employment, Organizations

Abstract

Research has long shown that members of marginalized racial groups face numerous challenges entering into and succeeding within predominantly White organizations. What does it take for members of this group to find success? To answer this question, I situate my research in the context of the technology sector, an elite industry notorious for lacking racial diversity. Analyzing an original and unique dataset of 1,000 venture-backed Black founders in the United States from 1990-2022, the research identifies key individual and company-level determinants of entrepreneurial success, operationalized in nine different ways. Findings reveal that gender, elite undergraduate education, and executive experience significantly impact outcomes. Additionally, company factors such as location, founding year, team size, and leadership diversity play crucial roles. These findings demonstrate the salience of what I call marginalized professional capital, which spotlights how a professional's personal and professional background and identity contribute to success within organizations and industries where they are broadly positioned as outsiders. Contributions to the theories of racialized organizations and the sociology of entrepreneurship are also discussed.

Author

• Alicia Sheares, Stanford University