Franchising as a Path to Self-Employment for Women and Minorities in Retailing
Keywords:
franchise, women, minorities, labor discrimination, entrepreneurship, self-employmentAbstract
Franchise-based retailing plays a vital role in fulfilling the public policy goal of supporting inclusion for women and minorities in the economic mainstream, through employment and self-employment opportunities. Using Census Bureau data, we compare franchising activity by two protected classes (women, minorities) with their comparison groups (men, non-minorities). Results indicate that franchising is used disproportionately by the protected classes as a path to self-employment. We also compare franchising activity among these groups across various sectors and find evidence that women and minorities use franchising to enter hard-to-access business sectors, of which they may have otherwise been excluded. Policy implications of these findings are discussed and directions for future research are offered.
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