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Capital Constraints and Industry Mix Implications for African-American Business Success

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  • Lucy Reuben
  • Pamela Queen

Abstract

Although not universally appreciated, African-Americans have a long history of entrepreneurial achievements against the odds. African-Americans are more likely to start a business, yet, are less likely to succeed. Well-documented discriminatory practices by industry sectors exclude minorities from lucrative business opportunities. This paper examines participation of African-American owned businesses in key industries to assess implications for revenue generation and hiring potential. While the numbers of African-American owned businesses are increasing; and these firms are providing greater contributions to the socio-economic progress of African Americans and potentially other disadvantaged groups, evidence that African-American owned businesses suffer adversely from unequal access to capital markets and institutional barriers is prevalent. A wealth gap between African-American owned business and non-minority business owners exists and for some industries has widened, as survival of African-American owned business is threaten. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Lucy Reuben & Pamela Queen, 2015. "Capital Constraints and Industry Mix Implications for African-American Business Success," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(4), pages 355-378, December.
    • Handle: RePEc:spr:blkpoe:v:42:y:2015:i:4:p:355-378
    DOI: 10.1007/s12114-015-9210-9
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    References listed on IDEAS

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