Utilization of Minority Employees in Small Business: A Comparison of Nonminority and Black-Owned Urban Enterprises

Abstract

Structural changes in the urban economy are causing African-American workers in blue collar occupations to rely increasingly upon the small business sector for employment. This study finds that most of the nonminority-owned small businesses operating in large urban areas do not employ minorities. Even among the businesses physically located within minority communities, the majority of the workers in the nonminority small firms are white. Black-owned businesses, in contrast, rely largely on minority workers even when their firms are located outside of minority neighborhoods.