Informality and Latino-Owned Businesses: A National Portrait of Unregistered Latino-Owned Businesses

JSRI 30th Anniversary Conference, 2019

Posted: 30 Jan 2020

See all articles by Michael J. Pisani

Michael J. Pisani

Central Michigan University - College of Business Administration

Date Written: June 1, 2019

Abstract

Objective. This study provides the first nationally representative portrait of unregistered (informal) Latino-owned businesses (LOBs) in the United States.

Methods. We employ data from the 2018 Stanford Latino Entrepreneurship Initiative Survey of 4,024 U.S. LOBs. We estimate the determinants of unregistered LOBs through a set of independent variables derived from entrepreneur demographics/firm characteristics utilizing a binomial logistic regression to predict the odds of group membership between (un)registered LOBs.

Results. Approximately one-third of LOBs across the United States operate as unregistered enterprises. We find that LOB firm registration is associated with higher levels of education of the entrepreneur and larger size of the LOB. We uncover further links between entrepreneur acculturation and gender, and firm product offering and clientele ethnicity, with firm registration.

Conclusion. For the first time, we are able to establish a quantitative baseline for informality and firm registration among LOBs using a nationally representative sample.

Keywords: Informality, Latino-owned Businesses

JEL Classification: L26, J46, J15

Suggested Citation

Pisani, Michael J., Informality and Latino-Owned Businesses: A National Portrait of Unregistered Latino-Owned Businesses (June 1, 2019). JSRI 30th Anniversary Conference, 2019, Available at SSRN: https://ssrn.com/abstract=3515217

Michael J. Pisani (Contact Author)

Central Michigan University - College of Business Administration ( email )

Mt. Pleasant, MI 48858
United States

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