Factors affecting the success or failure of African-American new business ventures in the St. Louis, Missouri metropolitan area

This study examined what factors impact upon the success or failure of a new business venture initiated by an African-American. Fifty African-Americans who owned a business, failed in a business venture, or are employed with an organization or agency that advocates small business or African-American entrepreneurship were selected for analysis. The criteria for selection was: longevity in a business venture or occupation, type of occupation employed in and whether or not the subject had failed in a business attempt. Twelve subjects were selected for the final analysis. Subjects were asked a series of questions relating to American entrepreneurship in the St. Louis Metropolitan Statistical Area (STLMSA). All subjects were residents of the STLMSA.;Literature relevant to entrepreneurial history, African-American entrepreneurial history, and STLMSA African-American entrepreneurial issues was reviewed. Reviewing the literature helped to establish areas of concern, e.g. African-American consumer support of business activities or obtaining financing for a new business venture, for African-Americans in the STLMSA who may be considering initiating a business venture. Subjects shared personal feelings and experiences during the interviews. Each interview was transcribed and drafts of the transcriptions were sent to the subject for final review, comments or corrections.;The subjects saw advantages for African-Americans initiating businesses in the STLMSA including: (1) The geographic location of the area, (2) a large African-American population to be serviced, and (3) the major cites East St. Louis, Illinois and St. Louis, Missouri both have Black mayors. The primary disadvantages of the STLMSA presented to African-American entrepreneurs were: (1) A lack of willingness by banks and lending institutions to assist African-Americans or other minorities with business growth and development, (2) Racism in the STLMSA which negatively impacts upon business start-ups and established African-American businesses, and (3) A lack of trust and support among African-American business owners. Despite the problems, African-Americans in the STLMSA are involved in a variety of new business ventures including engineering, marketing, and manufacturing.