1. New NYC Business Incorporation 2005-2013 An Exploration of Non-Minority and Minority-Owned Enterprise Creation By Shelby Ahern stahern@gmail.com NYC Data Science Academy Student Demo day 07-21-2014 R005: Data Science by R(Beginner level)

2. Explore New Business Incorporation in NYC between 2005-2013, and New Business Incorporation, by Minority and Non-Minority Ownership Data Sources Active New York Corporations: Beginning in 1800 1 NYC Online Directory of Certified Businesses: Minority-Owned Business Enterprises (MBE) 2,3 U.S. Census Population Estimates 4 Entity Type: Domestic Business Corporation Domestic Cooperative Corporation Domestic Professional Corporation Parameters and Notes 2005-2013 (9 years) Borough = County (ie. Manhattan: New York County, Brooklyn: Kings County, Queens = Queens County, Bronx = Bronx County, Staten Island = Richmond County

3.  Create Data Frames of Data from Each Source  Run Summary Statistics for Validation  Split by Borough and Combine DFs from Different Sources  Perform Calculations ie. New Incorporations per Capita  Data Viz!  Test: “Density” of New MBE Corps for Minority Population ≠ “Density” of New Non-MBE Corps per Non-Minority Population

4. An Initial Review of the Summaries of the Corporation Data and MBE-Certified Corporations show… Major disparity between the Number of Incorporations per year, and number of MBE’s established in that year. Why? -Data Quality: Change in Ownership Structure, Restrictions to MBE Certifications, and/or Filing Lag -!! What the Data actually represent: MBE application purpose & process

5. >MH_Corps CountyyearNewCorpsNewMBECorpsTot_PopMBE_pop 1 NwCorpsperCapNwMBECorpsperCapNwMBECorpsperMBECap NwNonMBECor psperCap 1NEW YORK200551013515297746906960.00332.30E-055.10E-050.006 2NEW YORK200653954216115817382210.00332.60E-055.70E-050.0061 3NEW YORK200753733916208677249260.00332.40E-055.40E-050.006 4NEW YORK200856023816347956964130.00342.30E-055.50E-050.0059 5NEW YORK200976173916290546695830.00472.40E-055.80E-050.0079 6NEW YORK201098723415858736748000.00622.10E-055.00E-050.0108 7NEW YORK201199092416019487032500.00621.50E-053.40E-050.011 8NEW YORK2012103261516190906974070.00649.30E-062.20E-050.0112 9NEW YORK201310345315858735467320.00651.90E-065.50E-060.01 After merging data from different data frames, we are able to calculate the number of new corporations filed per capita, on a yearly basis. Further, we calculate the number of new corporations filed per capita of certain populations, like MBEs/Minority and Non-MBE’s/Non-Minority populations. Example Data Frame, Manhattan

6. $NwCorpsperCap $NwMBECorpsperCap Incorporations per Capita and MBE Incorporations per capita, 2005- 2013

7. MBE Incorporations per Capita, 2005- 2013 $NwCorpsperCap $NwMBECorpsperCap

8. Findings:  The per-capita incidence of incorporations increased across all boroughs, from 2005 - 2013.  Manhattan, Queens, and Brooklyn had the highest per-capita incorporations.  Queens appears to have the steepest increase in corporation filings.  MBE incorporations per capita are a thousands of times smaller than the general level of per-capita-incorporation.  The per-capita incidence of MBE incorporations varied by borough (led by Manhattan), and trended downward after 2009.

9. Hypothesis: The number of MBE incorporations per non-white person is not equal to the number of non-MBE incorporations per white person. The approach: 1. Select Value to test:  MBE Corps per Minority capita  Non-MBE Corps per Non-Minority capita ▪ Utilize data from all years and boroughs (5 boroughs x 9 years x 2 categories = 90 obs.) 2. Evaluate which test(s) to conduct.  Parametric vs. Non-parametric  Means test vs. Other 3. Conduct test and analyze results.

10. Histogram, MBE Incorporations per Minority capitaQQplot, MBE Incorporations per Minority capita

11. Histogram, Non-MBE Incorporations per Non-Minority capita QQplot, Non-MBE Incorporations per Non-Minority capita

12. Neither MBE nor Non-MBE per capita data appear to be normally distributed. Hence, we’ll consider the following two non-parametric tests: Mood’s Median Test A nonparametric test where the null hypothesis of the medians of the populations from which two or more samples are drawn are identical. (Wikipedia) H 0 : Medians of MBE - Minority cap and Non-MBE -- Non-Minority cap are equivalent. H 1 : Medians of MBE - Minority cap and Non-MBE -- Non-Minority cap are NOT equivalent. Mann-Whitney-Wilcoxon Test A nonparametric test of the null hypothesis that two populations are the same against an alternative hypothesis, especially that a particular population tends to have larger values than the other. (Wikipedia) H 0 : MBE - Minority cap and Non-MBE -- Non- Minority cap could be representative of the same set of data. H 1 : MBE - Minority cap and Non-MBE -- Non- Minority cap could NOT be representative of the same set of data.

13.  In both tests of parity, the null hypothesis is rejected, thus we find that the incidence of new business incorporations per capita are different between the two populations.