Banking on Black enterprise : the potential of emerging firms for revitalizing urban economies /

This comprehensive statistical study of black enterprise in the US analyzes the reasons for the disproportionate number of business failures of firms headed by black entrepreneurs. Bates's statistical analyses illustrate the changing nature of black-owned businesses, evolving from mom-and-pop corner stores to construction, wholesaling, and high-tech service industries. His data show that businesses located in minority-dominated areas, or those that rely on such areas for customers, suffer reduced access to private sources of capital. He argues that the use of government funds to assist black businesses will reap substantial dividends because they are an effective instrument of economic development. Bates suggests that the strategies previously employed to promote black entrepreneurs were deficient in design, especially targeting, and not always enthusiastically implemented. He cites data which show that cities with black mayors have more developed black business communities, although the direction of causality may in fact run in the opposite direction. In summary, the book provides an excellent statistical picture of the nature and evolution of black-owned business in urban America. However, it fails to strongly support the policy prescription of encouraging these businesses to promote economic development in minority-dominated urban areas. G. N. Tompkins; University of Regina

Bates is an economist specializing in minority business development. He has coauthored The Political Economy of the Urban Ghetto (1984) and Financing Black Economic Development (1979). The Joint Center for Political and Economic Studies is a 23-year-old public policy research institution devoted to improving the socioeconomic status of African Americans, increasing their influence in the political arena, and building racial coalitions. Bates' current research, sponsored by the Joint Center, provides the factual underpinnings and data to support policy decisions to encourage and assist the growth of black-owned enterprises. Bates refutes the notion that black business is mostly made up of "traditional" neighborhood and "mom-and-pop" operations. He identifies an emerging and diversified business community, demonstrates the importance of set-aside programs, and shows that minority employers offer the best hope for solving the inner-city and minority unemployment crises. Highly recommended for business and public policy collections. (Reviewed May 15, 1993)0941410935David Rouse