Contemporary Black Entrepreneurship in the Professional Service Sector of Chicago: Intersections of Race,Entrepreneurship,and Economic Transformation

Abstract

Entrepreneurship could level the playing field between racial groups and decrease poverty through job creation. Growth in the U.S. professional services (PS) sector over the last several decades has increased high-wage employment and entrepreneurship opportunities. Although the number of Black-owned PS businesses has grown, their performance lags behind their counterparts of other races. Black entrepreneurs in highly skilled sectors, such as PS, tend to be more educated, better financed, and have more diverse customer bases than their counterparts in other sectors. Yet, these advancements have not translated into firm performance. This study examines factors influencing outcomes of Black PS entrepreneurs in Chicago using interview and focus group data. Results indicate that racialized barriers, current entrepreneurship culture, and the nature of the PS sector combine to contour a contentious business environment. Updating models of inclusion to address the contemporary entrepreneurial environment and incorporating accountability measures are necessary steps to realize the potential of this group.