Association for Public Policy Analysis & Management

Many projections both global and domestic include continuous employment growth in the areas of science, technology, engineering, and mathematics (STEM). High-tech entrepreneurship is considered the future of the workforce, a growth that is based on scientific and technical knowledge which comes from STEM education. Creating entrepreneurial environments have also become a major driver in economic development policy along with minority entrepreneurship which has also been viewed as an economic development strategy. However, historically, African Americans have faced, and continue to face structural and social network barriers that impede the pursuit of entrepreneurship.  Based on recent data, while growth in African American entrepreneurship has increased, African Americans still remain underrepresented as owners of high-tech firms.  This is important to consider given that the high-tech entrepreneurs are seen as drivers of the economy, the jobs that hold the most growth, and that minority firms, when they grow, tend to hire other minorities. Although the potential of minority high-tech entrepreneurship to address concerns of social equity and enhance economic development has been recognized, there is less evidence available as to why African Americans lag behind in starting high tech firms. The purpose of this research is to test the effects of STEM education on African American high-tech entrepreneurial pursuits. 

STEM are the areas in education that are closely linked with high technology, high skill, and high salary positions (Chubin, May, & Babco, 2005). Recognizing the important role of high-tech firms in the economy, many programs also focus on converting STEM educated individuals into high tech entrepreneurs. This paper considers the potential of STEM education and programming as a critical connection to African American high-tech entrepreneurship. Data indicates that African Americans make up about 7.5% of STEM degrees awarded, a number that has held steady since 2009.  To address this gap, the federal government, colleges and universities have invested a great amount of resources in programs and efforts to increase the number of minority students that pursue high-tech areas of study, such as STEM; however, less certain is the effects of such efforts on increasing minority entrepreneurship in high-tech industries.  It is hypothesized in this paper, African Americans who participate in STEM programs that include key structural and social supports are more likely to pursue high-tech entrepreneurship than their peers in programs that lack such supports.

Through binary logistic regression analysis of STEM programs aimed at increasing the numbers of African Americans pursuing STEM careers and secondary data sources on the characteristics of minority owned businesses, this study aims to produce empirical research on the program components that influence entrepreneurship among African Americans.  The sampling frame includes 46 STEM programs. The findings from the research will provide empirical knowledge on the benefits and effects of programs that aim to increase entrepreneurship in STEM fields, with a particular focus on the specific factors that increase high- tech entrepreneurship among African Americans.