Frederick Lowe talked to Austin Algernon, our Senior Research Fellow, about his report, “The Color of Entrepreneurship.”

“I wish I knew the answer as to why there was a decline for black men’s firms,” said Algernon Austin, the report’s author. “As I mentioned, there was a strong decline in black male construction firms. We know that the bursting of the housing bubble was devastating for construction firms generally. White men’s construction firms declined by 11.4 percent and black men’s firms declined by 23 percent. It is likely that black men’s firms generally were in a more precarious situation because of their low level of wealth. The shock of the Great Recession eliminated more of them than for white men.”