e traced in part to local, state and federal procurement opportunities.14 This period is characterized by a the invention and implementation of affirmative action practices. Between 1977 and 1982, black-owned businesses grew by 46.7 percent.15 (Table 2.1) Although these may seem like unprecedented gains African-American participation in the entrepreneurial market as a whole only accounted for 3.1 percent of all US firms and 1 percent of all receipts. There is also no causal relationship, although popularly accepted, between minority ownership and small-business failure.16 In fact, the reason why there are less African-American business and more business owned by other minorities is due to a proportionately low start-up rate among African-Americans. This low start-up rate can be attributed to difficulties in obtaining lines of credit. Virtually every study of minority entrepreneurs finds that a major problem in starting and operating a business is obtaining lines of credit.17 Since the end of legalized discrimination there has only been slight improvement in banks willingness to loan monies to African-Americans. The latest study of characteristics of business owners by the Census Bureau indicates that. . . non-minoraty men borrow 16 percent of their initial capital from commercial banks while black business owners get 9.5 percent of their initial capital through such channels.18 Although the climate of the US is no longer hostile towards the success of African-American entrepreneurs, the environment is still not effective in creating opportunities for these business to even exist. Without this environmental analysis an examination of the African-American entrepreneur is fruitless. The framework of Race, Markets and Social outcomes is characterized by the exposition of arguments concerning the relationship of African-Americans, entrepreneurship, and success. The case study that will be examined involves black participation i...
