Abstract
This study compares the performance of small businesses formed between 1976 and 1982 by three groups: 1) Asian males, 2) black males, and 3) nonminority males. Self-employed Asians are outperforming nonminorities and blacks. A subset of black-owned firms—small scale ghetto-oriented operations—is shown to be laggard. Weak internal markets, commercial bank redlining, and loss of entrepreneurial talent are factors in undermining the inner city black business community. Successful black-owned firms are increasingly removed from the ghetto and from serving a minority clientele.
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Notes
Timothy Bates,The Role of Black Enterprise in Urban Development (Washington, D.C.: Joint Center for Political Studies, 1989), ch.3.
See, Timothy Bates, “Entrepreneur Human Capital Inputs and Small Business Longevity,”The Review of Economics and Statistics (forthcoming).
Timothy Bates, “Commercial Bank Financing of White and Black-Owned Small Business Startups,” (unpublished manuscript).
Timothy Bates, “Small Business Viability in the Urban Ghetto,”Journal of Re- gional Science (November 1989).
Timothy Bates, “Financing Black Enterprise,”Journal of Finance vol.29, (June 1974).
Timothy Bates and Donald Hester, “Analysis of a Commercial Bank Minority Lending Program,”Journal of Finance vol.32, (December 1977).
Timothy Bates and William Bradford,Financing Black Economic Development (New York: Academic Press, 1979) ch.9.
Bates, The Role of Black Enterprise,” ch.2-4.
Bates, “Small Business Viability.”
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Bates, T. The changing nature of minority business: A comparative analysis of asian, nonminority, and black-owned businesses. Rev Black Polit Econ 18, 25–42 (1989). https://doi.org/10.1007/BF02895231
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DOI: https://doi.org/10.1007/BF02895231