ABSTRACT
The relative status of black-owned businesses deteriorated somewhat from the mid-1980s through the early 1990s. Between 1987 and 1992, sales of black firms rose as a fraction of total sales, but the number of black businesses as a percentage of all businesses rose slightly faster. This chapter presents an overview of the growth of black-owned businesses, and a discussion of trends in market shares. It examines long-term prospects for black firms. Black-owned businesses are continuing to play a very modest role in the American economy. Likewise, black businesses are sharing only moderately in the growth of income being achieved in the black community. Retail trade also mirrored the legacy of black merchants selling primarily to black customers during the era of segregation. The receipts of black-owned local and inter-urban transportation firms expanded by 16.2 percent. Again, much of this growth was traceable to the ability of blacks and other newcomers to enter the industry as the latter was deregulated.
