Enterprise Development under an Economic Detour? Black-Owned Advertising Agencies, 1940-2000

Abstract

This article uses the economic detour theory of enterprise development to assess the origins and development of black-owned advertising agencies in the United States since the World War II era. In light of this concept, key socioeconomic phenomena—racial segregation, desegregation, and multiculturalism—are addressed in terms of their impact on opportunities for and practices among black advertising entrepreneurs. Historical evidence is largely consistent with key principles of the economic detour model. In sum, it appears that a contemporary form of racial separation persists in the advertising business, which serves to constrain entrepreneurial efforts among black and other ethnic minority entrepreneurs in the industry.