This study uses a market structure framework to analyze the presence of black-owned businesses in manufacturing sectors of the U.S. economy in 1972. Tobit analysis reveals that black-owned firms tend to be concentrated in those industries with a relatively large small-business presence. High advertising expenditures are a significant barrier to black presence in a given industry. The amount of government purchases from an industry is found to have no significant relationship to black presence.
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References
1.
Capital from Annual Survey of Manufactures, 1970–1971, U.S. Bureau of the Census, Washington, D.C., 1973.
2.
Labor, Value Added, and Total Sales from 1972 Census of Manufactures, Vol. I, U.S. Bureau of the Census, Washington, D.C., 1976.
3.
Advertising, Total Government Sales, and Household Sales from The Detailed Input Output Structure of the U.S. Economy: 1972 (Vol. I), U.S. Bureau of the Census, Washington, D.C., 1979.
4.
Industry Growth calculated from 1972 Census of Manufactures and 1963 Census of Manufactures, Vol. I, U.S. Bureau of the Census, Washington, D.C., 1966.
5.
Sales from Small Firms from 1972 Enterprise Statistics, Part 1, Bureau of the Census, Washington, D.C., 1977.
6.
Total Sales from Black-Owned Firms from 1977 Survey of Minority-Owned Business Enterprises: Black, U.S. Bureau of the Census, Washington, D.C., 1979.
