Featured Research

from universities, journals, and other organizations

Freedom of choice: When rejection, discrimination hinder minority entrepreneurs

Date:
June 25, 2014
Source:
Journal of Consumer Research, Inc.
Summary:
When it comes to The American Dream, freedom of choice is a central value for entrepreneurs. According to a new study, when a person’s choices are limited due to rejection and discrimination, they are more likely to fail at business and in their personal lives. In their research, the authors studied the experiences of racial and ethnic minority entrepreneurs and compared them with white majority entrepreneurs.

When it comes to The American Dream, freedom of choice is a central value for entrepreneurs. According to a new study in the Journal of Consumer Research, when a person's choices are limited due to rejection and discrimination, they are more likely to fail at business and in their personal lives.

"Not only does restricting a person's choices threaten the success of a new business, it also has swift and damaging effects on the individual's self-esteem and their personal sense of control and power in the world," write authors Sterling A. Bone (Utah State University), Glenn L. Christensen (Brigham Young University), and Jerome D. Williams (Rutgers University).

In their research, the authors studied the experiences of racial and ethnic minority entrepreneurs and compared them with white majority entrepreneurs. Results revealed that the experiences of ethnic minority entrepreneurs were often remarkably different and worse than those of their white counterparts.

In one field study, white, Hispanic, and African American participants were asked to apply for small business loans using identical application data and wearing the same clothes. While all applicants were otherwise identical in appearance and "on paper," the Hispanic and African American applicants were given different information than the white applicants. They were also asked to provide more financial background information, were given significantly less encouragement, and were less likely to receive help in the loan application process.

The authors also examined how a person's self-esteem and sense of autonomy are threatened after rejection. Comparing the impact of being rejected for a student loan, results showed that minority respondents took a harder emotional hit than their white counterparts.

"For public policy stakeholders and consumer welfare activists, our research offers evidence against the general assumption in the United States that choice is equally distributed, democratized, and available to all," the authors conclude.


Story Source:

The above story is based on materials provided by Journal of Consumer Research, Inc.. Note: Materials may be edited for content and length.


Journal Reference:

  1. Sterling A. Bone, Glenn L. Christensen,andjerome D. Williams. Rejected, Shackled, and Alone: The Impact of Systemic Restricted Choice on Minority Consumers’ Construction of Self. Journal of Consumer Research, August 2014

Cite This Page:

Journal of Consumer Research, Inc.. "Freedom of choice: When rejection, discrimination hinder minority entrepreneurs." ScienceDaily. ScienceDaily, 25 June 2014. <www.sciencedaily.com/releases/2014/06/140625132110.htm>.
Journal of Consumer Research, Inc.. (2014, June 25). Freedom of choice: When rejection, discrimination hinder minority entrepreneurs. ScienceDaily. Retrieved August 1, 2014 from www.sciencedaily.com/releases/2014/06/140625132110.htm
Journal of Consumer Research, Inc.. "Freedom of choice: When rejection, discrimination hinder minority entrepreneurs." ScienceDaily. www.sciencedaily.com/releases/2014/06/140625132110.htm (accessed August 1, 2014).

Share This




More Mind & Brain News

Friday, August 1, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Dieting At A Young Age Might Lead To Harmful Health Habits

Dieting At A Young Age Might Lead To Harmful Health Habits

Newsy (July 30, 2014) Researchers say women who diet at a young age are at greater risk of developing harmful health habits, including eating disorders and alcohol abuse. Video provided by Newsy
Powered by NewsLook.com
It's Not Just Facebook: OKCupid Experiments With Users Too

It's Not Just Facebook: OKCupid Experiments With Users Too

Newsy (July 29, 2014) If you've been looking for love online, there's a chance somebody has been looking at how you're looking. Video provided by Newsy
Powered by NewsLook.com
How Your Face Can Leave A Good Or Bad First Impression

How Your Face Can Leave A Good Or Bad First Impression

Newsy (July 29, 2014) Researchers have found certain facial features can make us seem more attractive or trustworthy. Video provided by Newsy
Powered by NewsLook.com
Losing Sleep Leaves You Vulnerable To 'False Memories'

Losing Sleep Leaves You Vulnerable To 'False Memories'

Newsy (July 27, 2014) A new study shows sleep deprivation can make it harder for people to remember specific details of an event. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins