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New NYC Business Incorporation An Exploration of Non-Minority and Minority-Owned Enterprise Creation By Shelby Ahern NYC Data Science Academy Student Demo day R005: Data Science by R(Beginner level)

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Explore New Business Incorporation in NYC between , and New Business Incorporation, by Minority and Non-Minority Ownership Data Sources Active New York Corporations: Beginning in 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 (9 years) Borough = County (ie. Manhattan: New York County, Brooklyn: Kings County, Queens = Queens County, Bronx = Bronx County, Staten Island = Richmond County

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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

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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

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>MH_Corps CountyyearNewCorpsNewMBECorpsTot_PopMBE_pop 1 NwCorpsperCapNwMBECorpsperCapNwMBECorpsperMBECap NwNonMBECor psperCap 1NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E NEW YORK E E 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

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$NwCorpsperCap $NwMBECorpsperCap Incorporations per Capita and MBE Incorporations per capita,

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MBE Incorporations per Capita, $NwCorpsperCap $NwMBECorpsperCap

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Findings: The per-capita incidence of incorporations increased across all boroughs, from 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.

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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.

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

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

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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.

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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.

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