Entrepreneurship, Racial Inequality and the Mixed Economy: The Example of Brazil.

Many countries encourage entrepreneurship to promote social and economic development. Scholars have documented the connections between race, ethnicity, and entrepreneurship in various societies but few studies have focused on Brazil. The entrepreneurial economy in the country is hardly known, and there is a paucity of research that accounts for factors such as race, religion, and unpaid family labor. The theoretical foundation of this study is based on Nee, Sanders and Sernau's mixed economy theory, and Aldrich and Waldinger's framework of ethnic business development. Analyses of the 2000 census data for men in the state of Sao Paulo suggest that African Brazilian entrepreneurs tend to have smaller enterprises and earn less than white entrepreneurs. In addition, results from heteroskedastic regression suggest that the variance of earnings increases as firm size increases. The study discusses policy implications concerning racial inequality among business owners. Additionally, the study discusses theoretical implications of the findings, and proposes that market and traditional forces shape the mixed economy. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]