| This study examines the general characteristics of Chicano entrepreneurship (self-employment) in rural California and ascertains the determinants of entrepreneurial choice.;The data from the 5% Public Use Microdata Sample of the 1990 Census of the Population and Housing indicates a 9% self-employment rate--roughly equal to the national rate--for California's rural Chicanos. On average, the Chicano self-employed have greater earnings, more labor market experience, more human capital, and more assets than wage earners. These results are generally consistent with the "classical" view of entrepreneurship as a proactive response to opportunities, where the main limits to action are liquidity constraints. The theoretical model and econometric results, however, suggest a more complicated picture.;The economic model uses relative pecuniary returns between self-employment and wage-work as determinants of occupational choice. Additionally, it allows for non-pecuniary returns, opportunities or constraints due to ethnicity, and locational constraints due to rurality. The model explicitly incorporates the possibility of part-time self-employment, an alternative often ignored in models of occupational choice. A variety of theoretical scenarios for entrepreneurial activity are presented.;The econometric analysis is based on a switching regressions model. The results indicate that additional education through the 12th grade and English proficiency contribute to both the probability of being self-employed and to profits. The results for post-secondary education are less consistent. The probability of self-employment increases with the percentage of Hispanics, while profits decrease. The expected differential between profits and wages is not shown to be significant. Thus, the results also provide some support for the "disadvantage" view of entrepreneurship as a reaction to blocked mobility in the wage market. This study points to several avenues for future research.;Research on Chicano entrepreneurship has been sparse and largely confined to those who reside in metropolitan areas. In California, where they represent 21% of the state's total, the absolute and relative growth rates of the Chicano population (those of Mexican origin) are much faster in rural areas. It is also here where problems of relatively high poverty rates, unemployment, and deficiencies in community resources are more acute. Self-employment may represent one "self-help" alternative for rural Chicanos. |
