Race And Self-Employment: The Role Of Training Programs, Self-Employment Background, And Access To Financing

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Executive Summary

This paper uses data from Project GATE to examine the efficacy of offering free self employment assistance to unemployed individuals interested in self-employment, overall and by race. The authors also examine the effect of participants' self-employment background, finances, and personal circumstances on their self-employment outcomes. They find that Project GATE led to significant gains in the outcomes of unemployed participants, particularly for black participants. The analyses also show that significant portions of the race disparities in self-employment outcomes among unemployed participants are attributed to race differences in access to financing. The policy implications of the findings are discussed.

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