Many Baltimore-area residents see entrepreneurship as a more viable pathway to improving their financial standing than traditional salaried employment, a new Johns Hopkins University study finds.
The Baltimore Area Survey, conducted by the Johns Hopkins 21st Century Initiative, found younger, less educated, lower income, and Black residents in the Baltimore region face difficulties accessing economic opportunities. These respondents were more drawn to entrepreneurial endeavors as a means to financial success, despite perceiving less opportunity for entrepreneurship in Baltimore.
“The survey data suggest that the currently prevalent type of entrepreneurship in the area is more necessity-based, wherein less-educated and low-income residents, many of whom are Black, seem to be pushed into entrepreneurship,” the report states. “This is likely due to the lack of desirable career opportunities and family-supporting jobs from existing businesses that could yield greater income than starting a new business.”
Meanwhile, older, more educated, higher income, and white residents were more likely to choose salaried employment over entrepreneurship, though these groups perceived ample entrepreneurial opportunities in the Baltimore region.
“Those respondents still believe that entrepreneurship is a better path than getting a job in an established business,” said Mac McComas, senior program manager for 21st Century Cities Initiative. “Our findings suggest that while more than a quarter of respondents identify as entrepreneurs, the type of entrepreneurship available now may be the kind to supplement income to help residents subsist rather than the kind that would significantly transform the area’s economy through innovation and growth.”
Foundations, regional banks, and policymakers might be able to use the survey findings to better support entrepreneurs through strategic investments, and provide a pathway out of poverty, McComas suggested.
“Residents who engage in entrepreneurship out of necessity should be supported with lending, grants, and technical support so that their businesses can thrive and become part of the backbone of a healthy Baltimore-area economy,” McComas said.
