Black Business Ownership in the Rural South

The relatively low business ownership rate among blacks nationwide (12.5 per 1,000 people) is even lower in the rural South (8.8 per 1,000). This study uses Census Bureau data to document the level of business ownership among blacks in the rural South and to explore a number of hypotheses regarding the low level of business ownership among rural blacks and the variation from state to state. The size of the black population in the rural areas of a state is negatively correlated with the rural black business ownership rate in the state, while the education level, income level and homeownership level of blacks in rural areas of a state is positively correlated with the rural black business ownership rate. However, it appears that statewide economic conditions may be more closely related to the level of rural black business ownership than are characteristics of rural blacks.