Owner and organizational characteristics of 94 Black-owned businesses
and 385 White-owned businesses in Chicago, Boston, and Washington,
D.C, are examined. Black business owners had fewer years of education and
less business experience than their White counterparts. Black businesses were
also smaller, more labor intensive, located in poorer neighborhoods, less likely
to have insurance, visited by fewer customersper day, more likely to renttheir
shopspzce, and to be less profitable ihzn White businesses. However, despite
these organizational and individual characteristics, the survival rates of Black
and White businesses were not significantly different. Logit analyses suggested
that variables such as race, education, size of business, and the average income
of those living in the neighborhood, in this sample, did have significant effects
on business profitability but did not explain business survival.
and 385 White-owned businesses in Chicago, Boston, and Washington,
D.C, are examined. Black business owners had fewer years of education and
less business experience than their White counterparts. Black businesses were
also smaller, more labor intensive, located in poorer neighborhoods, less likely
to have insurance, visited by fewer customersper day, more likely to renttheir
shopspzce, and to be less profitable ihzn White businesses. However, despite
these organizational and individual characteristics, the survival rates of Black
and White businesses were not significantly different. Logit analyses suggested
that variables such as race, education, size of business, and the average income
of those living in the neighborhood, in this sample, did have significant effects
on business profitability but did not explain business survival.
