The share of St. Louis city residents who were employed in the last five years that are business owners
White employed residents are 36% more likely than black employed residents to own their business.
A score of 100 represents racial equity, meaning there are no racial disparities in outcomes. The lower the Equity Score, the greater the disparity.
For Business Ownership, a score of 100 — a score reflecting racial equity — would mean black and white residents are equally likely to own their own business. It is important to note that for this indicator, equity is not our only goal; we also want to improve outcomes for all.
What does this indicator measure?
Business Ownership measures the share of St. Louis city residents who were employed in the last five years that are business owners. In 2016, 4,844 people reported being business owners, which represents 2.5% of individuals employed in the last five years.
Business Ownership analysis
Individuals employed in the last five years that are business owners in St. Louis City.
|All||White||Black||Disparity Ratio||Equity Score|
|Individuals employed in the last five years||195,617||100,086||78,372||-||-|
|Percent of employed population that are business owners||2.5%||2.7%||2.0%||1.358 to 1||68|
Data Source: American Community Survey 1-year PUMS, 2016.
Data Note: PUMS data may differ slightly from estimates on American FactFinder due to differences in sampling. See PUMS technical documentation for more information. The number of sample cases is too small to report reliable estimates for additional racial groups.
What does this analysis mean?
White employed residents are 36% more likely to own their own business than black employed residents. 2.7% of white employed residents are business owners, compared to 2.0% of black employed residents. If business ownership rates were equitable, there would be 565 more black residents that are business owners.
Why does Business Ownership matter?
Economists from the Federal Reserve Bank of Cleveland have identified active small businesses and minority business ownership as two of the major growth factors for regional economies. The Aspen Institute has identified business ownership as key to closing the racial wealth gap. Equity in business ownership could increase incomes, increase wealth, and decrease generational poverty.
Which Calls to Action from the Ferguson Commission report are linked with this indicator?
The Commission’s calls to action related to business ownership include:
Questions for further investigation
- Why is there racial disparity in Business Ownership?
- What can St. Louis do to reduce racial disparities in Business Ownership?
- What initiatives are currently underway to reduce racial disparities in Business Ownership?