The Direction of Black Capitalism: A Comparative Look at the Market Disparities in African American-Owned Businesses in Indiana Relative to the Aggregate United States

Abstract

Black capitalism is the push for African Americans to find financial success and ownership through business. But, current economic data still suggests that there are significant gaps in market representation for African American business owners. While many of these gaps have decreased in recent history, there are still several sectors where black capitalism has been hindered. Individuals who start businesses have particularly high chances of failing in their beginning years. African Americans have even higher chances of creating unsuccessful enterprises. It is important to understand what factors lead to these disparities in order to create a more equitable economy. This project’s purpose is to identify the inequalities and disadvantages that black business owners may encounter in their pursuit of gaining access to certain markets in the state of Indiana. It places specific focus on comparing and contrasting Indiana’s data and findings with the U.S. as a whole. This study was conducted using a number of government resources, statistical data, and former studies that complement the subject. It incorporates quantitative data from sources such as the U.S. Census Bureau and the Bureau of Labor Statists (BLS) as well as qualitative information from previous academic publications. Through careful analysis of data, the information suggests that it is more difficult for African American business owners to secure financial capital, investments, and entrepreneurial training. Additionally, African American business owners in Indiana have underperformed in several economic sectors in comparison with aggregate U.S. data. But, many of these disparities can be linked to Indiana’s population, demographics, cost-of-living, and industrial economy.