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In the United States, entrepreneurs usually possess positive attitudes about businesses, because the framework of business owners are usually Caucasian males who are classified as Baby Boomers. Minority entrepreneurs, despite their age, are not typically considered the majority to become entrepreneurs. If minority owned businesses exist, then they are classified as small businesses with limited profit, marketability of products and services. As a result, minority entrepreneurs usually experience discrimination from banks and limited experience as business owners. (Schultz & Achtenhagen, 2013).
Minorities experience discrimination and receive limited revenue from loans or similar programs that hinders future success (Singh & Gibbs, 2013). Minorities are usually denied business loans, because they have no or low credit scores along with no collateral. Additional issues include a lack of knowledge about desired business industries, operational activities, inability to market, plan and forecast (White, 2010).
Women, especially minority women entrepreneurs usually have challenges with raising children, caring for aging parents while maintaining households, as well as, maintaining the success of their businesses.
Occasionally, the family obligations hinders potential growth of businesses and minority women simply prefer to remain small (White, 2010). Disadvantages of minorities, especially with women, have challenges with their businesses based on discrimination, inadequate startup money, limited access of resources and limited business support that leads to business growth (Davison, Fielden, Omar, 2008). Businesses owned by minority women are usually smaller than those in retail related or service industries. The businesses usually generate lower customer and revenue performance due to a smaller network of resources, in order to start, market, and sustain business growth. Women usually focus more non-monetary goals, such as opportunities to balance home, work and autonomy rather than focus on finances and growth of their businesses. Whereas, men usually own large companies that are not in retail and service industries. They have a larger network of resources, in order to start, market, and increase revenue of their businesses. Men GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 361 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 are able to focus on monetary goals, because most of them are not primary caretakers of children, aging parents, and households (Robinson & Stubberud, 2011). Business owners with large firms can focus on more profit, and executing additional markets for future revenue, whereas, smaller firms are content with receiving salaries from their businesses, maintaining operational activities, and job satisfaction from their businesses (Saravathy, Memon and Kuechle, 2011).
There are two (2) surveys that required completion from participants, including the Carland Entrepreneurship Index and the Demographic Survey. The Carland Entrepreneurship Index focuses on 33 questions regarding preferences on internal and external needs. The questions are used to determine levels of entrepreneurial drives among entrepreneurs. A cumulative score of thirty-three (33) is classified as high levels of entrepreneurial drive and a cumulative score of one (1) is classified as low levels of entrepreneurial drive (Carland & Carland, 2000). The Demographic Survey completed by the researcher included questions about ethnicity, age, education and gender. Additional questions included types of industries, annual gross, legal structure and location of businesses. The survey included additional questions, regarding their existing challenges with their businesses and needs for their businesses within the next six (6) and twelve (12) months. The collection of the surveys were completed in traditional and non-traditional settings. Two (2) small minority owned businesses invited other entrepreneurs to attend network events, in order to complete the surveys. The researcher explained the nature of the surveys, provided each participant an informed consent form, and the surveys. Upon completion, the participants placed the surveys in an anonymous box.
The non-traditional approach enabled the researcher to send emails to entrepreneurs through social media, such as LinkedIn, Facebook and Twitter. The surveys and informed consent forms were sent to entrepreneurs who expressed an interest in participating in the study. Verbal and written forms of appreciation were provided to entrepreneurs who completed the surveys.
RESULTS AND DISCUSSIONSTable 1: Carland Entrepreneurship Index
In table 1, the completed responses of surveys were sixty one (N= 61; Mean 17.5). The standard deviation was (2.17273) that demonstrated that results are significant, despite the sample of the population. The lowest score of entrepreneurship drive among entrepreneurs were twelve (12) and the highest score was twenty-one (21) out of a score of thirty-three (33).
In Table 2, the highest entrepreneurial drive among entrepreneurs was eighteen (18) (12; 19.7%) out of a total score of thirty three (33). Immediately following the highest score of eighteen (18), participants responded equally between the entrepreneurial drives of fifteen (15), seventeen (17) and nineteen (19) with (9; 14.8%). The lowest scores among participants were levels of twelve (12) and fourteen (14) with (1;
GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 362 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Table 2: Frequency Distribution of Entrepreneurial Drives
Table 3: Graph of Entrepreneurial Drives from Participants In table 3, the histogram showed that eighteen (18) was the highest level of entrepreneurial drives from participants. The lowest entrepreneurial drives are equally distributed between levels of twelve (12) and fourteen (14) from Carland Entrepreneurship Index.
Table 4: Gender Percentages of Participants
Males Females 47 % 52% In table 4, there were fifty-two percent (52%) females and forty seven percent (47%) male entrepreneurs who participated during the study. There were sixty- one (61) participants that completed the Carland Entrepreneurship Index and fifty-three percent (53%) of participants that completed demographic surveys.
Table 5: Ethnicity of Participants
The distribution among participants were African American with sixty-six percent (66%), Caucasians with twenty eight percent (28%), Hispanics with six percent (6%) and no Pacific Islanders (0%) (see Table 5).
GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 363 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Table 6: Age of Participants
The largest amount of entrepreneurs ranged between 31-41 years of age and accounted for forty percent (40%) and classified as Generation Y. There was an equal distribution between twenty-five percent (25%) in 41-51 years old as Generation X and twenty five percent (25%) of Baby Boomers from 51-61years (25%). The lowest response of two percent (2%) was among entrepreneurs who were 62 years and older while classified as Baby Boomers, also (see Table 6).
Table 7: Education of Participants
In table 7, fifty-one percent (51%) of entrepreneurs were college graduates. Twenty-one percent (21%) entrepreneurs graduated from graduate school. The lowest amount were thirteen percent (13%) of entrepreneurs with a high school diploma.
Table 8: Types of Industries of Entrepreneurs
The highest percentage of responses were seventy nine percent (79%) in Service industries that included businesses in Training, Consulting, Cosmetology, Health Care, Retail, Music, Law and Education. The lowest responses from entrepreneurs were in Construction at four percent (4%) (See table 8).
Table 9: Annual Gross Revenue of Businesses 0-50,000 50-100,000 100-150,000 150-200,000 250,000 + 47% 15% 25% 0% 9% The highest annual gross of businesses ranged between 0-50,000.00 was forty-seven percent (47%), and twenty-five percent (25%) ranged between 100-150,000.00 per year. There were no responses for businesses that earned annual revenue between 150-200,000.00. However, there were nine percent (9%) of businesses that generated over 250,000.00 (see table 9).
Table 10: Number of Employees Employed in Businesses of Entrepreneurs 0-5 6-10 11-16 17-22 83% 8% 6% 3% Entrepreneurs had eighty three percent (83%) of employees ranging between 0-5 within their businesses.
The lowest amount of responses were three percent (3%) with 17-22 employees working in businesses among entrepreneurs (see table 10).
GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 364 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 Table 11: Legal Structures of Businesses
In table 11, forty-seven percent (47%) of entrepreneurs have their businesses structured as LLC’s and forty percent (40%) of entrepreneurs have their businesses structured as sole proprietors. Two percent (2%) of entrepreneurs have their businesses structured as partnerships.
Table 12: Location of Businesses
In table 12, most of the responses of entrepreneurs ranged in the Northeast of the United States, such as, seventy percent (70%) in New Jersey, ten percent (10%) in New York and twelve percent (12%) in Connecticut. The lowest responses of entrepreneurs were two percent (2%) in Georgia.
Table 13: Existing Challenges Among Entrepreneurs
In table 13, entrepreneurs responded with external needs rather than internal needs as challenges within their businesses. Forty three percent (43%) of entrepreneurs responded with concerns about money as existing challenges within their businesses. Also, thirty percent (36%) of entrepreneurs responded that insufficient amount of customers was a concern, in order to survive, sustain and increase business growth.
The lowest challenge reported was education at six percent (6%) among entrepreneurs.
Table 14: Needs from Entrepreneurs in Six (6) Months
In table 14, the highest need among entrepreneurs within six (6) months included the need to access resources at thirty percent (30%). The ability to access resources included the knowledge of processes, systems and positions to enhance the status of their businesses. The outcome to effectively use resources GCBF ♦ Vol. 11 ♦ No. 1 ♦ 2016 ♦ ISSN 1941-9589 ONLINE & ISSN 2168-0612 USB Flash Drive 365 Global Conference on Business and Finance Proceedings ♦ Volume 11 ♦ Number 1 can increase opportunities for additional revenue, grants, marketing, networking and potential partnerships.
The lowest response regarding the need of support groups was 2 percent (2%) among entrepreneurs.
Table 15: Needs from Entrepreneurs in Twelve (12) Months
In table 15, the two highest needs among entrepreneurs within twelve (12) months included the need to access resources at fifty three percent (53%). The ability to access resources included the knowledge of processes, systems and positions to enhance the status of their financial and operational activities in their businesses. The lowest response regarding the need of motivation was 0 percent (0%) among entrepreneurs.
The study revealed interesting results regarding entrepreneurial drives and challenges of minority owned businesses in the United States. Most entrepreneurs possessed moderate levels of entrepreneurial drive, however, their challenges and needs were not focused on internal motivation, such as esteem and selfactualization. Instead, the challenges focused on external motivational factors, such as, money, lack of resources and not enough customers in each scope of their businesses. The needs among entrepreneurs within six (6) months were external needs, such as money, resources, training and marketing. The needs of entrepreneurs within twelve (12) months were external needs, such as, resources, money and networking.
All of their challenges and needs are the foundation to start, maintain and sustain business growth, despite the competitive markets, industries and demographics. Another interesting finding showed that most of the participants were from the Northeast region of the United States. The perceptions and attitude of entrepreneurs from the area, despite race, gender and creed has significance, because the cost of living is similar to the West and higher than the Southeast of the United States.