Black Americans’ Business Ownership Factors: A Theoretical Perspective

Abstract

The black American struggle in the United States continues to occur in the political, cultural and economic spheres with some measure of success. Regarding the economic sphere as the most critical because it is the source of real power in this country, and business ownership as the ultimate manifestation of economic liberation, this article examines black Americans’ business ownership and factors facilitating it. Defining successful business ownership in terms of: (1) increasing business formations by black Americans, (2) survival/longevity of the formed businesses, (3) their creation of jobs, and, (4) their profitability, this article identifies three factors facilitating it. The facilitating factor types are: (1) individual-specific, (2) group-specific, and (3) environment-consequent. It is suggested that the complex interaction of elements of these factors at any time, most likely determines the proportion of black ownership of American businesses.