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  1. #1
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    Default Entrepreneurship: The Ultimate White Privilege?

    A new study finds that future entrepreneurs score high on measures of teenage delinquency. They're also disproportionately white, highly educated, and male. Here's why that might not be a coincidence.
    JORDAN WEISSMANNAUG 16 2013, 8:24 AM ET


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    One of the great privileges that comes with being born wealthy, white, and male in the United States of America is that you can get away with certain youthful indiscretions. Indiscretions like, oh, smoking prodigious quantities of marijuana, for instance. If you're an upper-middle-class caucasian, chances are the cops aren't going to randomly stop and frisk you in the street under dubiously constitutional pretenses. And if you do somehow get caught baggie-in-hand, your parents can likely afford a decent lawyer to help plea bargain your way into some light community service. It's a cushy setup.

    Today, I'm finding myself wondering if that leeway -- that societal room to do a little law breaking, punishment free -- isn't part of the reason why so many of the successful entrepreneurs in this country are, yes, white guys.

    Sorry if that sounds a bit out of left field, but let me explain. Ross Levine, an economist at the University of California, Berkeley, and Yona Rubinstein, a professor at the London School of Economics, have released a fascinating working paper exploring the demographics, personality traits, and earnings of entrepreneurs. Among their findings, they conclude that:

    A) Entrepreneurs are "disproportionately white, male, and highly educated"; and

    B) As teens and young adults, they're far more likely than the average American to have partaken in "aggressive, illicit, risk-taking activities," such as skipping class, smoking pot, gambling, and shoplifting.

    It does not strike me as a coincidence that a career path best suited for mild high school delinquents ends up full of white men. That, again, is part of white privilege; youthful indiscretions have fewer consequences that might, say, keep you out of a good college.

    That said, while Levine and Rubinstein's findings hint at the role race might play in entrepreneurship, they don't flesh it out fully enough for us to draw hard conclusions. So with that in mind, let's wade into some of the details about precisely what this study does and doesn't tell us.

    We'll start with the demographic data, shown below based on the census figures from 1994 to 2005. The group we care about here are the self-employed workers with incorporated businesses, at the far right of the table. Why just them? Because they're who we traditionally consider entrepreneurs, as opposed to everyday small business proprietors. Unincorporated businesses tend to be tiny operations -- think of a bodega, or a carpenter who works alone out of a pickup truck -- with little chance of growing. As Levine and Rubinstein find in their study, the people who run them tend to earn less than salaried workers. Incorporated businesses, on the other hand, are actual companies (yep, with 1st Amendment rights and everything). They can be anything from a chain of gyms to an accounting firm to a small tech startup. But the important thing is they're independent legal entities and are often set up to attract investment and grow.

    And, as you'll notice, 84 percent of the incorporated self-employed (people who, for the purposes of this piece, we'll just shorthand as "entrepreneurs") are white, compared to 71 percent of the whole prime working-age population. They're also 72 percent male.
    http://www.theatlantic.com/business/...ors_picks=true
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  2. #2
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    this has much more to do with class than with race. But class isn't as sexy and won't get as much attention so people who do studies say race as it'll get more play.

  3. #3
    Atomic Punk Dave's Dreidel's Avatar
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    Eliminating "unincorporated" businesses just show how little a person knows about business and therefore has no reason writing an article about entrepreneurship.

    No matter what your fucking color, creed, sex, sexual or religious preference, opening up and incorporating your business is available to everyone at the exact same cost.

    In fact, it is EASIER for non-whites to open up businesses. As a white male, good luck trying to get a loan for a new business. A minority woman? The US Government can't wait to guarantee that.
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    oh for fucks sake.

    is there anything on this planet that doesn't have to be tied to race?

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    Quote Originally Posted by Bad to the Bone View Post
    oh for fucks sake.

    is there anything on this planet that doesn't have to be tied to race?
    Which planet, the white mans planet or everyone elses?

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    It has more to do with education and risk taking than anything else. Men are more likely to take risks than women, and whites generally go further with education than minorities. But the author seems to see racism where he wants to see it rather than looking at the facts.

    Here's a short anecdote on a related note: I was watching TV last night and they were interviewing this inner city black kid. Nice kid based on the interview and he was the first in the family to graduate high school (there's your first clue). They asked him what he wanted to be, and he said "a lawyer." I'm all for expanding opportunities to at risk youth, but he had a full rack of gold teeth, tattoos everywhere, and while he seemed nice, his English was very poor.

    How can a guy like that expect to make it? Say he doesn't want to be a lawyer but wants to open his own business. What bank is going to give him a sizeable loan?
    CNN may think my opinion matters, but you shouldn't.

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    Atomic Punk lovemachine97(Version 2)'s Avatar
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    We have to recognize there is a problem before we can solve the problem.

    I am tired of these stories about "profiling" and disproportionate stopping and frisking of minorities. Why is it that 85% of those stopped and frisked are Black and Latino? Because 97% of all murders in New York City are committed by Blacks and Latinos and 70% of all robberies are committed by Blacks alone. That's why.

    Is stop and frisk constitutional? I believe it is not. But here's the thing. We have to start recognizing that a disproportionate amount of violent crime is committed by minorities in order to solve both that problem and the employment/entrepreneur problem in Black America.

    An anecdote: My gf was in San Francisco a week and a half ago to go to the Outside Lands festival headlined by Paul McCartney (Fri), Nine Inch Nails (Sat), and Red Hot Chili Peppers (Sun). She flew in on Thursday night to meet her friend that lives up there in Oakland, and they went to dinner. Walking home, they saw a young, Black man in a hoodie walking towards them. Literally, my gf thought to herself, 'I bet if I crossed the street, that guy would think I am racist.' Then, the guy pulled out a gun and robbed both of them.

    If we recognize that this is a problem and try to solve it, we would also solve the employment/entrepreneur problem.

    There are a lot of issues that could be argued, but a giant one that is touched on here (drugs, race, and law enforcement) is the drug war. If marijuana was legal, we wouldn't have disproportionate arrests based on it. Gangs, who run guns and drugs, would be out of the drug businesses, which would have to go above board, just like booze. We would be taking away a lucrative "job" disproportionately filled by minority kids. We wouldn't have disproportionate sentences for crack arrests (usually Black) as opposed to cocaine (usually White).

    Next--schools. Minorities, disproportionately, are attending terrible inner-city schools. They are not being prepared for employment/entrepreneurship. Sure, perhaps Whites skip school more often--but they are going to much better schools. Throwing money at the problem isn't working. The answer? I say school choice, but society, for the most part, believes that you should go to school based on where you live and more money will make it better. I hope that someday that happens.

    Again, I could touch on lots of things, but I'll only hit on one more--obstacles to entry into the workforce. I argue minimum wage is one, but I am in the minority and my views have been made here on that subject. However, what about unfair government influence? Should ethnic hair care shops be forced to buy a license and get training that has nothing to do with their services? But they must. Is it fair that if you deliver goods inside your state and want to expand across state lines that your competition can show up to your licensing hearing and make a case for why you're not needed? What if you want to give people rides? You just need a car and insurance--but you must be licensed, and in man big cities those licenses are limited. In NY, they are like liquor licenses and can be in the high six figures. In other cities, they can be a nice year's salary. There are all kinds of examples, but these are government-imposed obstacles to low-skilled jobs.

    All of these things, among other problems, keep minorities from employment and entrepreneurship.

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    Quote Originally Posted by lovemachine97(Version 2) View Post
    We have to recognize there is a problem before we can solve the problem.

    I am tired of these stories about "profiling" and disproportionate stopping and frisking of minorities. Why is it that 85% of those stopped and frisked are Black and Latino? Because 97% of all murders in New York City are committed by Blacks and Latinos and 70% of all robberies are committed by Blacks alone. That's why.

    Is stop and frisk constitutional? I believe it is not. But here's the thing. We have to start recognizing that a disproportionate amount of violent crime is committed by minorities in order to solve both that problem and the employment/entrepreneur problem in Black America.

    An anecdote: My gf was in San Francisco a week and a half ago to go to the Outside Lands festival headlined by Paul McCartney (Fri), Nine Inch Nails (Sat), and Red Hot Chili Peppers (Sun). She flew in on Thursday night to meet her friend that lives up there in Oakland, and they went to dinner. Walking home, they saw a young, Black man in a hoodie walking towards them. Literally, my gf thought to herself, 'I bet if I crossed the street, that guy would think I am racist.' Then, the guy pulled out a gun and robbed both of them.

    If we recognize that this is a problem and try to solve it, we would also solve the employment/entrepreneur problem.

    There are a lot of issues that could be argued, but a giant one that is touched on here (drugs, race, and law enforcement) is the drug war. If marijuana was legal, we wouldn't have disproportionate arrests based on it. Gangs, who run guns and drugs, would be out of the drug businesses, which would have to go above board, just like booze. We would be taking away a lucrative "job" disproportionately filled by minority kids. We wouldn't have disproportionate sentences for crack arrests (usually Black) as opposed to cocaine (usually White).

    Next--schools. Minorities, disproportionately, are attending terrible inner-city schools. They are not being prepared for employment/entrepreneurship. Sure, perhaps Whites skip school more often--but they are going to much better schools. Throwing money at the problem isn't working. The answer? I say school choice, but society, for the most part, believes that you should go to school based on where you live and more money will make it better. I hope that someday that happens.

    Again, I could touch on lots of things, but I'll only hit on one more--obstacles to entry into the workforce. I argue minimum wage is one, but I am in the minority and my views have been made here on that subject. However, what about unfair government influence? Should ethnic hair care shops be forced to buy a license and get training that has nothing to do with their services? But they must. Is it fair that if you deliver goods inside your state and want to expand across state lines that your competition can show up to your licensing hearing and make a case for why you're not needed? What if you want to give people rides? You just need a car and insurance--but you must be licensed, and in man big cities those licenses are limited. In NY, they are like liquor licenses and can be in the high six figures. In other cities, they can be a nice year's salary. There are all kinds of examples, but these are government-imposed obstacles to low-skilled jobs.

    All of these things, among other problems, keep minorities from employment and entrepreneurship.
    Fantastic post!

    When I hear a black person complain about racism, my gut reaction is: This is America! This is the Land of Opportunity. You're making an excuse.

    Then reality creeps in.

    It's an extremely complicated problem (as you've skillfully described in your post) and it deserves critical and well reasoned people trying to make it better.

    (I had hopes that our president would've led a charge for good in this area, but the opposite is true - one of the reasons I'm disappointed in him.)

    I'd like to add two more nuances to your post, as well.

    First is, our current society and systems (neighborhoods, schools, economics) were developed during overtly racist times. I think David Lee Roth touched on this in one of his videos - about neighborhoods developing because of shared language. Even if we reject that racism today, we're living in the product of it. Talk about your sticky wickets.

    Second is culture. Unfortunately, rap and hip-hop is the culture that took hold among young black people. So now you have everything mentioned in lovemachine's post, plus what I said above AND the young black men (primarily) are finding their only power through in a thug culture that celebrates misogyny, gangs, crime, etc.

    I have no idea how to fix any of this, either. But my gut tells me, guys like the one in the video below have to become heroes to young black men and women. How does that happen?

    http://www.ted.com/talks/ludwick_mar...out_water.html

  9. #9
    Atomic Punk Dave's Dreidel's Avatar
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    I am glad others brought it up, as I am usually labeled a racist for saying it.

    The biggest problem with the black community in my humble opinion is the culture that has set in among a large percentage of black men.

    There is a NBC News article from 2010 that states that 72% of all black children born in America are born illegitimate. Now I am sure that there is a percentage of those that have a father in the household and they just haven't gotten married. But I bet that is a small amount.

    And to me, THIS is the driving force for a large percentage of the problems in the black community. Many of the other problems routinely discussed are symptions. Of course there are other causes, many of them rooted in outright racism and discrimination, and I am not sure how you alter four hundred years of subservient treatment.

    But having illegitimate children cannot be blamed on anyone but themselves, and it is a problem that only their community can solve.
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    Here in CT we have a Safe Zone Law that gives a mandatory 2 year sentence to anyone caught and convicted of selling drugs within 1500 feet of a school, daycare center or housing project. Now democrats in our state want to lower it to 300 feet because it is putting a disproportionate amount of minorities in prison. Some legislators are also arguing that in some of the cities that 1500 feet law comprises the entire city so they want to abolish it all together. Cities like New Haven fall in that category.

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    This country will never get past the race issue. Too many profit from it. Too bad so many are buried by it.

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    Default Entrepreneurship: The Ultimate White Privilege?

    Quote Originally Posted by Dave's Dreidel View Post
    I am glad others brought it up, as I am usually labeled a racist for saying it.

    The biggest problem with the black community in my humble opinion is the culture that has set in among a large percentage of black men.

    There is a NBC News article from 2010 that states that 72% of all black children born in America are born illegitimate. Now I am sure that there is a percentage of those that have a father in the household and they just haven't gotten married. But I bet that is a small amount.

    And to me, THIS is the driving force for a large percentage of the problems in the black community. Many of the other problems routinely discussed are symptions. Of course there are other causes, many of them rooted in outright racism and discrimination, and I am not sure how you alter four hundred years of subservient treatment.

    But having illegitimate children cannot be blamed on anyone but themselves, and it is a problem that only their community can solve.
    In 1960, the illegitimacy rate for Backs was 22%. It's amazing that before the Great Society, illegitimacy and unemployment for Blacks were in slightlybetter standing vs Whites. The scales slowly tipped and here we are.

    When welfare first started, a mother could get a bit more--not a lot, but a bit more--in assistance than if the father stuck around and worked a full time minimum wage job. I think this started a cycle that, while hearts were in the right place, encouraged fatherlessness and perpetuated poverty. Add other factors from above, and...well, it's been difficult for the community.

    That said, these are all policies Blacks seem to want. They vote 90% Democrat. That party (Republicans too) perpetuates the drug war, wants greater family assistance, doesn't want school choice, wants a higher minimum wage, and they don't believe we should recognize that minorities are disproportionately more likely to be involved in a violent crime. Through voting for Democrats, Blacks as a block express that they want these things. If that's the case, why aren't things better? Oh yeah--it's easier to blame White people.
    Last edited by lovemachine97(Version 2); 08.20.13 at 09:52 AM.

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    Quote Originally Posted by lovemachine97(Version 2) View Post
    In 1960, the illegitimacy rate for Backs was 22%. It's amazing that before the Great Society, illegitimacy and unemployment for Blacks were in slightlybetter standing vs Whites. The scales slowly tipped and here we are.

    When welfare first started, a mother could get a bit more--not a lot, but a bit more--in assistance than if the father stuck around and worked a full time minimum wage job. I think this started a cycle that, while hearts were in the right place, encouraged fatherlessness and perpetuated poverty. Add other factors from above, and...well, it's been difficult for the community.

    That said, these are all policies Blacks seem to want. They vote 90% Democrat. That party (Republicans too) perpetuates the drug war, wants greater family assistance, doesn't want school choice, wants a higher minimum wage, and they don't believe we should recognize that minorities are disproportionately more likely to be involved in a violent crime. Through voting for Democrats, Blacks as a block express that they want these things. If that's the case, why aren't things better? Oh yeah--it's easier to blame White people.
    Yes, because as this discussion has proved, this is an insanely complicated issue, and I know virtually no one (white, black or otherwise) jumping at the chance to spend decades unraveling an insanely complicated issue.

    Damned if I'd know where to begin.

    Quote Originally Posted by Dave's Dreidel
    Of course there are other causes, many of them rooted in outright racism and discrimination, and I am not sure how you alter four hundred years of subservient treatment.
    Great point. It can't be altered, obviously. Is part of the problem that whites are ignoring the past? Or that blacks are holding onto it? A combination?

    Again, I have no idea. But it seems to me if an unthinkably successful billionaire like Oprah Winrfy (despite her being a total windbag) can FEEL like she's being discriminated against, I'd say we're all failing to address racism in realistic terms.

    As in, there's gotta be some way to say, yes, racism is real and we should all try to reduce it in our individual lives, but yes, we live in this place where the failures of the black community should be 100 percent unacceptable by blacks and whites.

    Too tough to say out loud, maybe?

    I don't know.

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    Quote Originally Posted by ToddE View Post
    Yes, because as this discussion has proved, this is an insanely complicated issue, and I know virtually no one (white, black or otherwise) jumping at the chance to spend decades unraveling an insanely complicated issue.

    Damned if I'd know where to begin.



    Great point. It can't be altered, obviously. Is part of the problem that whites are ignoring the past? Or that blacks are holding onto it? A combination?

    Again, I have no idea. But it seems to me if an unthinkably successful billionaire like Oprah Winrfy (despite her being a total windbag) can FEEL like she's being discriminated against, I'd say we're all failing to address racism in realistic terms.

    As in, there's gotta be some way to say, yes, racism is real and we should all try to reduce it in our individual lives, but yes, we live in this place where the failures of the black community should be 100 percent unacceptable by blacks and whites.

    Too tough to say out loud, maybe?

    I don't know.
    I've made the argument on here (and most disagreed) that this is a large reason why there is a problem. You can't just enslave a population, give them "freedom," yet create new laws that reenslave them, then separate them in society, then finally give them equal rights and expect everything to be magically perfect 50 years later.

    That said, we have to be real about it. Is it perfect today? No. Is it better than it ever has been? Yes. Could it be better? Perhaps.

    We're not getting anywhere with the current rhetoric. I don't think that will change, however.

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    Quote Originally Posted by lovemachine97(Version 2) View Post
    I've made the argument on here (and most disagreed) that this is a large reason why there is a problem. You can't just enslave a population, give them "freedom," yet create new laws that reenslave them, then separate them in society, then finally give them equal rights and expect everything to be magically perfect 50 years later.

    That said, we have to be real about it. Is it perfect today? No. Is it better than it ever has been? Yes. Could it be better? Perhaps.

    We're not getting anywhere with the current rhetoric. I don't think that will change, however.
    Kinda disheartening, isn't it?

 

 

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