African American Owned Small Business: A Phenomenological Study Examining Success Strategies to Survive Five Years and Beyond
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Authors
Cook, Shelena
Issue Date
2025-12
Type
Dissertation
Language
en
Keywords
black business , black business sustainability , black business strategy , Business, Engineering, Science, & Technological Innovation , Educational Leadership & Learning Lifelong
Alternative Title
Abstract
Small businesses in the United States are vital to the economy's overall health, representing 99% of employer organizations. Small businesses provide critical resources to their communities by creating jobs, fostering economic stability, and building family wealth. However, only 49% survive for 5 years. African American owned small businesses (AAOSBs) experience the highest rates of failure compared to other racial groups and are four times less likely to succeed in business. The purpose of this qualitative phenomenological study was to explore the skillsets and strategies required from the perspective of successful business owners in the Midwest region to help increase the survival rate of AAOSBs. AAOSBs are opening businesses faster than any other racial group, but struggle more when keeping their business open beyond 5 years. The problem identified was that AAOSB owners in the Midwest region often lacked the necessary skillsets and strategies, contributing to only 4% of AAOSBs surviving the first 5 years. The conceptual framework that guided this study was strategic planning and resource-based theory (RBT). Using a phenomenological qualitative design, data were collected through one-on-one semi-structured interviews of 20 AAOSB owners. All participants were successful AAOSB owners in business for 5 years or longer, representing Midwest states: Illinois, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, and Wisconsin. The business industries included fashion design, event planning, grocery store, healthcare, hospitality, professional hairstyling, restaurants, retail, and the beauty industry. The analysis was guided by Colazzi’s seven-step method and NVivo 14. Trustworthiness was established through reflective journaling, member checking, and triangulation of data. The skillsets and strategies identified were people management, time management, goal orientation, problem-solving, continuous learning, business planning, business strategy, marketing strategy, and resource management. Positive implications included managing resources to reach goals and achieve business success. Negative implications included the inability to obtain needed resources and failure to achieve business success. Recommendations for future research included conducting a quantitative or mixed-methods study to identify specific skillsets and strategies that correlate to specific business success metrics. Practice recommendations included conducting business planning, developing business strategies, creating a business and marketing plan, and hiring skilled employees.