African Americans, STEM, and Entrepreneurship: A Study of Factors that Influence African Americans to Pursue Entrepreneurship in STEM Fields

Abstract

Minority business entrepreneurship, specifically in the areas of science, technology, engineering, and mathematics (STEM), provides multiple opportunities for innovation, job creation, high earning potential for underrepresented minorities, and for increasing the diversity of the U.S. workforce to reflect current population demographics. This study examines the educational backgrounds of high technology African American entrepreneurs and the factors of STEM programs that influence STEM-educated graduates to pursue high tech entrepreneurship. The research questions include, do STEM programs provide a link to high technology entrepreneurship? And, what STEM program factors are related to high technology entrepreneurship? The theoretical framework that informs the study draws upon the social network and social capital literature. STEM programs are conceptualized as a social capital bridge that can provide program participants access to economic opportunity. A program provides a bridge by enhancing the social network characteristics of program participants and connecting them to a future career opportunity or trajectory. Programs provide this bridge through the elements they offer, including relational and structural supports that address historical deficits that have served as barriers in STEM programs and entrepreneurship. The STEM program elements related to social capital and social networks included role models, mentoring, and social networking. Data were gathered from a variety of sources to identify and describe the patterns and trends in STEM programs and high technology entrepreneurship. Data sources included an existing entrepreneurship data set that includes information on business owner and enterprise characteristics, including race, education, and type of enterprises owned. This data set is used to determine if there is a relationship between type of education and high technology entrepreneurship. Surveys were also administered to program administrators of the Louis Stokes Alliance for Minority Participation (LSAMP) Alliances and STEM program graduates. Chi-square and fisher's exact tests were used to analyze the data, as appropriate. An association was found between African American entrepreneurs with STEM degrees and high tech entrepreneurship. This suggests that African American entrepreneurs that are participating in the workforce as high technology entrepreneurs are those obtaining educational degrees in STEM. However, a primary finding in this study is that STEM programs are not directly connecting program participants to the factors identified as important for high technology entrepreneurship. The review of STEM-support program elements included the components of social networks and social capital through mentoring, role models, and networking, with financial support. No significant association was found for the majority of the program elements and high technology entrepreneurship. However, the exception is that STEM programs that include venture capitalists as role models have an association with high technology entrepreneurship. The lack of association between the STEM-support program elements and high tech entrepreneurship can be partly attributed to the overall program goals and emphasis on education completion and less on employment pursuits. The program goals and emphasis on education completion results in a program structure that is void of access to the social capital resources that can facilitate high technology entrepreneurship as one path to the STEM workforce. Currently, program elements emphasize building the STEM workforce in the area of research and academia. The analysis suggests, if high technology entrepreneurship is valued as a STEM sub workforce, the need to broaden program missions and include program supports that link STEM education and high tech entrepreneurship. Recommendations include the implementation of various initiatives such as the introduction of entrepreneurship into courses in the STEM curriculum; the creation of partnerships with other educational units such as business programs to provide training; the development of partnerships and internships among high tech industries; and the provision of increased access to entrepreneurs.