Economic Disproportionality in the Hoosier State: A Comparative Look at the Sectoral Disparities in African American-Owned Businesses in Indiana Relative to the Aggregate United States

Abstract

poster abstractBlack capitalism is the push for African Americans to find economic success through business ownership. But, current data still suggests that there are significant gaps in market representation for African American business owners. While many of these gaps have decreased in recent history, there are still several sectors where black capitalism has been hindered. In the state of Indiana, the percentages of African American owned businesses participating in many of the economic sectors lag behind national averages. In particular, the largest three business sectors in Indiana all have above-average racial disparities with regards to black-owned firms. It is important to understand what factors lead to these disparities in order to create a more equitable economy. This project’s purpose is to identify the inequities and disadvantages that black business owners may encounter in their pursuit of gaining access to certain markets in the state of Indiana. It places specific focus on comparing and contrasting Indiana’s data and findings with the U.S. as a whole. This study was conducted using a number of government resources, statistical data, and former studies that complement the subject. It incorporates quantitative data from sources such as the U.S. Census Bureau and the Bureau of Labor Statists (BLS) as well as qualitative information from previous academic publications. Through careful analysis of data, the information suggests that it is less likely for African American business owners to secure financial capital or have entrepreneurial training. Additionally, it is clear that African American business owners in Indiana are underrepresented in the construction, retail, and professional services sectors in comparison with aggregate U.S. data. But, many of these disparities can be linked to Indiana’s population, demographics, and economic makeup