African American Entrepreneurship in the Suburbs

Abstract

This article presents the results of a systematic, national comparison of business performance among African American entrepreneurs located in cities and in suburbs. The data show that African American entrepreneurs conducting business outside the ghetto's protected market consistently outperform their counterparts doing business within it. With minor exceptions, the findings suggest strongly that African American entrepreneurs would be wiser to orient their business activities outside rather than inside the ethnic enclave. The implications of these findings for economic development planners are discussed and elaborated. Special attention is given to the limits that appear inherent in community-based economic development initiatives.