The Urban Development Potential of Black-Owned Businesses

Abstract

Urban poverty and unemployment remain concentrated among African Americans residing in core areas, and jobs continue to decentralize. Porter argues that inner cities have comparative advantages that, if properly harnessed, will be potent forces for revitalization. Yet such place-based strategies to revitalize depressed urban areas fail to ensure business development will yield employment for Black inner-city residents. Jobs created by White-owned firms go predominantly to White workers. A new generation of well-educated and skilled Black entrepreneurs own large and growing businesses with many employees, and most of those employees are African Americans. This study explores the recent success of Black-owned firms and suggests strategies for increasing their potential to alleviate Black unemployment.