Education and entrepreneurial activity: A comparison of White and South Asian Men

Abstract

Although a large body of literature exists on ethnic entrepreneurship and the relationship between education and entrepreneurial activity, comparatively little work has been undertaken to study the impact that university-level education has upon entrepreneurship within different ethnic minority groups. This article examines the entrepreneurial activity rates for graduates and non-graduates of three differing ethnic groups in the UK and shows that university education has differing influences across ethnic groups. While Pakistani graduate respondents were more likely to be involved in entrepreneurial activities as compared to non-graduates, education appeared to have less impact on increasing the interest in entrepreneurship of Indian adults. This is likely to be a reflection of the differing forces that have traditionally driven individuals from these communities into entrepreneurship, as indicated by a large Pakistani move from necessity-driven entrepreneurship to opportunity-driven entrepreneurship. Therefore, the relationship between entrepreneurship and education varies by ethnic minority group, and policy initiatives to increase entrepreneurship within these groups needs to be adjusted accordingly to be effective.