An Analysis of Korean-Immigrant-Owned Small-Business Start-Ups with Comparisons to African-American- and Nonminority-Owned Firms

Abstract

Social resources available from peer and community support networks may have little impact on small-business viability. In this study, the author finds that differences between Korean-immigrant-owned small businesses and African-American firms exist because Korean entrepreneurs are more apt to be highly educated and wealthy. Koreans invest heavily in small businesses, but their returns are often meager; per dollar of invested capital, the sales and profits of Korean firms lag behind those of African-Americans. Self-employment appears to be a form of underemployment for many Koreans.