Entrepreneurship in America in The 21st Century; Black vs. White

Published: June 22, 2021


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Black Entrepreneurs in America: Stories …


For the most part, entrepreneurship allows one to forge and take control of their destiny with the knowledge of unknown certainties as they take full responsibility for the risk to make a profit. Entrepreneurship can arguably traced back to the founders of our great American experiment. Firstly, let’s be clear I am not a politician, but a business person illustrating the difference in white and black entrepreneurs in their move to develop wealth in America. A Business degree is ranked as the most popular major in college and universities, followed by health care.

But are the playing field equal to all nationalities? Journal of economics, race, and policy (2021) did an article written by Teresa Kroeger & Graham Wright on this matter of the inequality of wealth and the racial divide in America. The attitude of white privilege and the subliminal mindset of everything being okay between nationalities is a fairy tale and not reality-based. Now, in fairness, this does not apply to all whites. Thus, many understand their white entitlement, and they work for equality for all people.

As a black entrepreneur for over 40-years, I have seen this upfront and personally in a stealthy way; not overly applied, but it is apparent in its application. From having the same rights as whites, blacks have to fight to get what the constitution says. Most African American parents will teach their children from an early age to get the same as their white counterparts; you must work harder and be twice as brilliant.

The Journal of Economics, Race, and Policy (2021) did an article on this very subject on how black entrepreneurs deal with and handle a different reality than their white equivalents in business. Black entrepreneurs enter into the business realm to increase their wealth the same as other whites; the continued oppression of the economic cost of business closure comparative to whites is constantly on going. Thus, using longitudinal data from the Panel Study of Income Dynamics (PSID), it found that black businesses were less likely to remain open after four years than white business owners.

The Disparity between Black and White Entrepreneurs

Hence, it is believed, the road to wealth in America is through entrepreneurship. Moreover, the concept of uplifting one from deprivation to increasing one wealth through ownership of homes, property, and other intangible rights or stuff could increase wealth to transfer to the family through generational wealth-building and application. As A Result, much evidence of wealth building and its disparity between whites and black families through history has been published (Gittleman & Wolff, 2004; Oliver & Shapiro, 2004; Shapiro et al., 2013).

Let us focus on wealth building, homeownership, careers, such as doctors, lawyers, engineers, and others that one needs a college education to pursue professionally. This group will earn more money than those with a job or no career focus, but a career he or she will build over time. On average, one who holds a college degree will earn about $32,000 per year over one who holds a high school diploma. Over forty years, that is $1,280,000 more than the high school graduate. The Economic Policy Institute wrote an article on this subject-Black, White Wage Gap, on how it has worsened for blacks since 2000.

Nevertheless, data shows that of whites, blacks, and women will earn less. The upward economic mobility of black entrepreneurs is the same as whites. So, the wealth-building process for blacks has some issues in them; the lower pay-off of black professionals over their white colleagues over forty years is substantial. This amount blacks could have earned could have been invested in property or other assets. But due to the inequality of the dollar earned by black professionals in the same industry is more diminutive than whites and used more for living accommodations than investments.

Therefore, this inequity of the dollar for black professionals earned from wages could have been used for down payments in real estate or other investments. So, without a mortgage on a home to pass down to generations is one hindrance to the revenue discrepancy of blacks. Hitting that 20% down payment is more challenging with earned income deficiency just illustrated.

Race/Ethnical Groups

In 2017 whites owned 81% of all businesses, while Asians and Hispanics owned some 9.7% and 5.8%, respectively, while black ownership was 3.5%. So, why is there such a substantial discrepancy between black entrepreneurship and other ethnic groups? Is it education, business acumen? African Americans are not novices of this type of enterprise, for they have been doing it for hundreds of years throughout America.

Within twenty years after the abolition of slavery African Americans had developed thousand of businesses in American within the black communities such as in Oklahoma, known as Black Wall Street, where whites destroyed 40 blocks of thriving businesses and homes and murdered hundreds, and put them in unmarked graves. The killers never brought to justice, and it was not that the townspeople did not know who did this travesty, for the entire town was involved in this massacre. Yet, no one was held accountable, nor money allocated to rebuild what was stolen or destroyed.

Jim Crow Laws

History.com explains what the Jim Crow laws were and how they affected African Americans/Blacks (AAB) in America. These were laws by states and local statutes which legalized racial segregation. Thus, voting, housing, education, what type of jobs AAB could have, and many more restrictions imposed on this group. Jim Crow began in 1865-1968.

The Jim Crow laws started after the ratification of the 13th amendment and the abolishing of slavery in America. The founding fathers spoke about liberty, freedom but hid the mention of slavery that was legal in all 13 colonies in 1776. America’s ugly past is silent and never really dealt with or the acknowledgment of the wrong perpetrated unto a people. They forced them to work for nothing and were treated as chattel and recognized as less than human, later known as a civil rights violation.

The slavery mentality or white supremacy attitude of whites domination of all people of color as being inferior, and the scare tactics that others are coming to take what they have is a mental scapegoat of using excuses to cover one’s shortcomings. This could manifest itself in labor, education, marital issues, or any personal complex that one needs as an excuse to escape some type of reality, the blaming of others for their own outcome. This complex needs an enemy, and prejudice is this manification that one finds their emotional release with a cause that makes them feel justified with the actions taken to charge and enslave a people.

About the author:

Dr. Mitchell works as a Small Business Consultant. He has offices in Southfield, MI,
Chicago, IL. His primary focus is on alternative Financing to small business organizations. If you are a business owner and need quick access
to unsecured operating capital, Click Here to apply. Must be open and operating for
at least 12 months with monthly sales of $10,000 or more. (5 Easy Steps – Powered by ARF Financial) Toll-Free (866) 400-3040 Email: donaldemitchell1@msn.com

Website: www.donaldemitchell.com

Addresses: 25 E Superior St Suite 2801

Chicago, Il 60611

2000 Town Center 19th Fl.

Southfield, MI. 48076

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Ann Springfield
Ann Springfield
3 months ago

Dr. Mitchell has a good handle on what is going on in America right now and he speaks his truth in a clear easily understood manner. Keep the articles coming!

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