Skip to main content
Log in

Black business transformation, black well-being, and public policy

  • Published:
Population Research and Policy Review Aims and scope Submit manuscript

Abstract

This article examines public policy and social welfare issues related to a recent trend in black business ownership: the decline of black-owned businesses in ‘traditional’ personal services serving a predominantly black clientele, and the corresponding increase of black-owned businesses in ‘emerging’ capital- and knowledge-intensive fields. It is argued that, while the growth of black business ownership in emerging fields is a sign of black economic progress, overall trends in black business ownership are not entirely positive. For one thing, the divergent trends in traditional and emerging black-owned firms reflect widening socioeconomic disparities within black communities. Moreover, the decline of traditional black-owned firms bodes ill for disadvantaged blacks in inner-cities. After reviewing the development of black business enterprise in the United States, trends in black business ownership since the 1970s are examined. Patterns of change in traditional personal services and emerging business services are then linked to social and economic transformations that have enabled many blacks to participate in the larger national economy. The article concludes by discussing the implications of declines in traditional black businesses for black well-being and for public policy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Bates, T. (1978). ‘Profitability in traditional and emerging lines of black enterprise’,Journal of Urban Economics 5: 155–159.

    Article  Google Scholar 

  • Bates, T. (1983). The potential for black business: a comment,Review of Black Political Economy 12: 237–240.

    Google Scholar 

  • Bates, T. (1989a). ‘The changing nature of minority business: a comparative analysis of Asian, nonminority, and black-owned businesses’,Review of Black Political Economy 18: 25–42.

    Google Scholar 

  • Bates, T. (1989b). ‘Small business viability in the urban ghetto’,Journal of Regional Science 29: 625–643.

    Google Scholar 

  • Bluestone, B. (1969). ‘Black capitalism: the path to black liberation’,Review of Radical Political Economics 1: 36–55.

    Google Scholar 

  • Boyd, R.L. (1989).Ethnic Entrepreneurs in the New Economy: Business Enterprise Among Blacks and Asian Americans in a Changing Urban Environment. Ph.D. Dissertation, Department of Sociology, University of North Carolina, Chapel Hill.

    Google Scholar 

  • Brimmer, A. (1971). ‘Small business and economic development in the Negro community’, in R.W. Bailey (ed.),Black Enterprise: Historical and Contemporary Perspectives. New York: Basic Books.

    Google Scholar 

  • Brimmer, A. and H.S. Terrell (1971). ‘The economic potential of black capitalism’,Public Policy 19: 289–308.

    Google Scholar 

  • Chen, G. (1984). ‘Business formation and investment in the minority community’, in R.D. Bingham and J.P. Blair (eds.),Urban Economic Development. Beverly Hills, California: Sage Publications.

    Google Scholar 

  • Drake, S.C. and H. Clayton (1962).Black Metropolis. New York: Harcourt, Brace and Company.

    Google Scholar 

  • Du Bois, W.E.B. (1899).The Philadelphia Negro. Philadelphia: University of Pennsylvania Press.

    Google Scholar 

  • Fain, T.S. (1980). ‘Self-employed Americans: their number has increased’,Monthly Labor Review 103: 3–8.

    Google Scholar 

  • Farley, R. (1984).Blacks and Whites: Narrowing the Gap? Cambridge, Massachusetts: Harvard University Press.

    Google Scholar 

  • Frazier, E.F. (1925). ‘Durham: capital of the black middle class’, in Alain Locke (ed.),The New Negro. New York: Albert and Charles Boni.

    Google Scholar 

  • Frazier, E.F. (1957).Black Bourgeoisie. New York: Macmillan.

    Google Scholar 

  • Green, L. and C.G. Woodson (1930)The Negro Wage Earner. New York: Russell and Russell.

    Google Scholar 

  • Harris, A.L. (1936).The Negro as a Capitalist. Philadelphia: American Academy of Political and Social Science.

    Google Scholar 

  • Katzman, D.M. (1973).Before the Ghetto: Black Detroit in the Nineteenth Century. Chicago: University of Illinois Press.

    Google Scholar 

  • Kinser, R.H. and E. Sagarin. (1950).The Negro Businessman: The Conflict Between Separatism and Integration. New York: Greenberg Press.

    Google Scholar 

  • Kotkin, J. (1986). ‘The reluctant entrepreneurs’,INC. 8: 81–86.

    Google Scholar 

  • Kusmer, K.L. (1976).A Ghetto Takes Shape: Black Cleveland, 1870–1930. Chicago: University of Chicago Press.

    Google Scholar 

  • Landry, B. (1987).The New Black Middle Class. Berekley, California: University of California Press.

    Google Scholar 

  • Light, I. (1972).Ethnic Enterprise in America. Berekley, California: University of California Press.

    Google Scholar 

  • Mitchell, C. (1988). ‘Leveraged leap: some blacks plunge into the mainstream in creating a business’,The Wall Street Journal, May 11.

  • Moss, P. (1988). ‘Employment gains by minorities, women in large city government’,Monthly Labor Review 111: 18–24.

    Google Scholar 

  • Myrdal, Gunnar (1944).An American Dilemma. New York: Harper and Row.

    Google Scholar 

  • O'Hare, W. and R. Suggs (1986). ‘Embattled black businesses’,American Demographics 8: 27–29.

    Google Scholar 

  • O'Hare, W., J. Yu-Li, R. Chatterjee, and P. Shuker (1982).Blacks on the Move: A Decade of Demographic Change. Washington, D.C.: Joint Center for Political Studies.

    Google Scholar 

  • Ofari, E. (1970).The Myth of Black Capitalism. New York: Monthly Review Press.

    Google Scholar 

  • Smith, J.O. (1987).The Politics of Racial Inequality. New York: Greenwood Press.

    Google Scholar 

  • Sowell, T. (1981).Ethnic America: A History. New York: Basic Books.

    Google Scholar 

  • Steinmetz, G. and E.O. Wright (1989). ‘The fall and rise of the petty bourgeoisie: changing patterns of self-employment in the postwar United States’,American Journal of Sociology 94: 973–1018.

    Google Scholar 

  • Taeuber, K.E. and A.F. Taeuber (1966). ‘The Negro population of the United States’, in J. David (ed.),The American Negro Reference Book. Englewood Cliffs, New Jersey: Prentice-Hall.

    Google Scholar 

  • U.S. Bureau of the Census (1935).Negroes in the United States, 1920–1935. Washington, D.C.: U.S. Government Printing Office.

    Google Scholar 

  • U.S. Bureau of the Census (1974).1972 Survey of Minority-Owned Business Enterprises: Black, MB 72-1. Washington, D.C.: U.S. Government Printing Office.

    Google Scholar 

  • U.S. Bureau of the Census (1979).1977 Survey of Minority-Owned Business Enterprises: Black, MB 77-1. Washington, D.C.: U.S. Government Printing Office.

    Google Scholar 

  • U.S. Bureau of the Census (1983).1980 Census of Population: Volume I. Characteristics of the Population. General Social and Economic Characteristics, Part 1. Washington, D.C.: U.S. Government Printing Office.

    Google Scholar 

  • Villemez, W. and J.J. Beggs (1984). ‘Black capitalism and black inequality: some neglected sociological considerations’,Social Forces 63: 117–144.

    Google Scholar 

  • Waldinger, R. (1986–87). ‘Changing ladders and musical chairs: ethnicity and opportunity in post-industrial New York’,Politics and Society 15: 369–402.

    Google Scholar 

  • Wartzman, R. (1988). ‘A blighted inner city bespeaks the sad state of black commerce’,The Wall Street Journal, May 10.

  • Wilson, W.J. (1987).The Truly Disadvantaged. Chicago: University of Chicago Press.

    Google Scholar 

  • Wong, C.C. (1977). ‘Black and Chinese grocery stores in Los Angeles' black ghetto’,Urban Life 5: 439–464.

    Google Scholar 

  • Yancy, R.J. (1974).Federal Government Policy and Black Business Enterprise. Cambridge, Massachusetts: Ballinger.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Boyd, R.L. Black business transformation, black well-being, and public policy. Popul Res Policy Rev 9, 117–132 (1990). https://doi.org/10.1007/BF02343245

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02343245

Keywords

Navigation