Resource Acquisition among Black Entrepreneurs: The Role of Immigration and Human Capital

• In Event: 30420 - Section on Racial and Ethnic Minorities Roundtables
  In Refereed Roundtable (60 minute): Table 7: Immigrants, Assimilation, Disjunctures, Racial Formations

Abstract

What factors influence resource acquisition among Black founders? Despite extensive research on challenges such as limited networks and difficulties raising capital, little is known about specific drivers of resource access. Using a unique dataset of venture-backed Black entrepreneurs (1990–2022), this study examines how human capital, team dynamics, and social identity shape outcomes. Findings indicate that founders with experience at top firms and immigrant origins acquire significantly more resources. In contrast, women, those with STEM experience, and founders who do not disclose funding rounds secure fewer resources. Immigration status emerges as the most robust predictor of resource acquisition. This research advances understanding of race, entrepreneurship, and immigration by highlighting how human capital, team composition, and social identity interact to shape resource acquisition for Black entrepreneurs.

Authors

• Alicia Sheares, Stanford University

• April Burrage, Stanford University