1. Black Business in Topeka
Dell Gines, MBA, CEcD
Federal Reserve Bank of Kansas City
Sr. Community Development Advisor

2. Topeka Black Businesses
The number of Topeka Black Businesses grew faster than the national average between 2007 to However, it lost a significant number of firms with employees (-54%) and employees (-53%) during this period.

3. Topeka Black Businesses
Topeka has significantly lower sales per Black business than Black businesses across the U.S. They also employ fewer individuals that the Black business national average.

4. Topeka Black Business
11% of the population in Topeka is Black, however only 5% of the businesses are Black owned.

5. Topeka Black Business
Black businesses in Topeka earn 17 times less than White owned businesses and 19 times less than Asian businesses.

6. Topeka Black Business
Black businesses in Topeka employee 13 times fewer employees that White owned businesses and 26 times few employees than Asian owned businesses.

7. Topeka Black Business Race Business Sales Purchasing Power Difference
to Purchasing $ Ratio
White
$5,169,528,000.00
$2,566,856,475.00
$2,602,671,525.00
2.01
Black
$19,770,000.00
$250,578,640.00
($230,808,640.00)
0.08
American Indian
$3,424,000.00
$38,790,464.00
($35,366,464.00)
0.09
Asian
$172,137,000.00
$61,655,112.00
$110,481,888.00
2.79
Hispanic
$23,305,000.00
$204,712,954.00
($181,407,954.00)
0.11
If Blacks in Topeka had a 1 to 1 Business $ to Purchasing $ ratio they would produce 1377 jobs in Topeka based upon 2012 sales to employees hired numbers.
For every $1 dollar of Black purchasing power, Black businesses only generate .08 cents of business revenue. For every $1 dollar of White purchasing power, Whites businesses generate $2 dollars in business revenue.

8. Topeka Black Business
For every 11 jobs needed, Black businesses in Topeka produce one.

9. Topeka Black Economic Condition
Is there a relationship between business ownership, income and poverty? Close to one out of every three Black individuals in Topeka lives in poverty.

10. Entrepreneurship Led Development
Entrepreneurs create jobs, increase local incomes and wealth (Henderson, 2002).
A higher ratio of entrepreneurial activity is associated strongly with faster growth of local economies (Barth, Yago & Zeidman, 2004)
Entrepreneurs connect communities to the larger, global economy.
Local entrepreneurs are more likely than branch plants to reinvest their wealth locally.
Entrepreneurs create a sense of place.
The cost of job creation is lower (Edmiston, 2006)
Entrepreneurship allows our emerging senior populations to continue to be productive and add economic value to local economies.
This kind of development is just a better “fit” for certain communities.

11. Historical Facts
Between 1867 and 1917 Black businesses in the U.S. increased from 4,000 to 50,000. This represents a 1150% increase in 50 years.
Between 1888 and 1934 over 124 Black banks were created.
Between 1851 and 1935 over 73 Historical Black Colleges were created

12. Contact Dell Gines dell.gines@kc.frb.org (402) 221-5606
Sr. Community Development Advisor
Federal Reserve Bank of Kansas City
(402)
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