Building Successful Black-Owned Businesses: How Black Entrepreneurs and White Consumers Can Help Close the Racial Wealth Gap in America ()
ABSTRACT
The persistent racial wealth gap between Black and
White Americans stems from centuries of institutionalized racism and
discrimination. Black entrepreneurship has the potential to reduce the racial
wealth gap by providing a means towards upward mobility and wealth accumulation
in the African-American community. As Black entrepreneurs consider locating or
expanding their businesses into non-Black communities, an important question
emerges: will White consumers support Black-owned businesses in majority-White
neighborhoods? To explore, this study investigates the impact of making the
race of a business owner salient to White consumers in Concord, New Hampshire,
a majority-White community. Through surveys of Concord residents, this research
finds a strong inclination among White Concord residents to support Black-owned
businesses in Concord. The findings suggest that would-be Black entrepreneurs
seeking to establish businesses in majority White neighborhoods in New England
may find success by, among other things, strategically marketing their
businesses as “Black-owned” to White consumers in these areas.
Share and Cite:
Stovall, H. (2023) Building Successful Black-Owned Businesses: How Black Entrepreneurs and White Consumers Can Help Close the Racial Wealth Gap in America.
Open Journal of Business and Management,
11, 3081-3097. doi:
10.4236/ojbm.2023.116169.
Cited by
No relevant information.