2025 Collaborative Network for Engineering & Computing Diversity (CoNECD)

Graduate, Engineering, Race/Ethnicity, Entrepreneurship

Unlocking Innovation: Empowering Underrepresented Entrepreneurs in Interdisciplinary Engineering Technology

Abstract:
In the realm of unaddressed ethnic disparities in the United States, the issue of venture capital funding is often overlooked. Despite their significant presence in the population, Hispanic and Black entrepreneurs receive only a fraction of venture capital investment, which is a stark contrast to their demographic representation. A staggering 77% of venture capital recipients are White, 9% women, and nearly 2% Latino, leaving just a minuscule 1% for African American entrepreneurs (remaining were Asians and Middle Easterners), regardless of their gender or educational qualifications [1]. Multiple sources claim an even higher population than 80% of White and approx. 1% Black [9, 10, 11, 12, 13]. This discrepancy is particularly evident in STEM and the burgeoning field of transdisciplinary startups like biotechnology, where interdisciplinary knowledge is increasingly crucial. Consequently, emerging entrepreneurs in these sectors frequently face obstacles in accessing adequate support, a challenge that persists into the 21st century amid fierce global competition for innovation leadership.

Recognizing this trend, Congress authorized eligible agencies under the SBIR/STTR Reauthorization Act of 2011 to allocate 3% of their small business grant budget to support underserved groups [2]. Consequently, several other agencies began utilizing this fund to reach out to those communities.

To maintain its position as a global leader in Research and Development (R&D), alongside the SBA the National Science Foundation (NSF) initiated the Innovative Postdoctoral Entrepreneurial Research Fellowship (IPERF) program. Designed to address the underrepresented researchers in STEM fields, IPERF offers these fellows invaluable experience within technology startups to bolster their professional development and give them valuable tools in the entrepreneurship area, as well as for the authors to create new knowledge about postdoctoral STEM entrepreneurship which might be reused at university levels in the future. The program aims to enrich diversity within the STEM high-tech startups and entrepreneurial spheres, thereby enhancing opportunities for marginalized groups. As interdisciplinary high-tech startups (nearly 70% of them) experience exponential growth, biotechnology companies within IPERF constitute nearly 40% of its participant companies. This paper presents part of the results, focusing on fellows post-IPERF time, i.e., longevity findings, and rapidly growing interdisciplinarity of the high-tech startups. A longitudinal study involving 60 fellows who completed the program over one to four years ago revealed that while the host companies hired 35% at the beginning, 25% still remained at various startup businesses after three years, and the majority (50%) transitioned into roles within industry labs. Through IPERF, highly educated yet primarily theoretical fellows gain hands-on experience in the intricacies of entrepreneurship, with the option to either continue with the current company or embark on their entrepreneurial ventures following the high-tech internship. This practical education not only benefits the fellows themselves but also contributes to the broader objective of diversifying startup leadership in the United States.