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)

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

 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

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

>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

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

MBE Incorporations per Capita, $NwCorpsperCap $NwMBECorpsperCap

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.

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.

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

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

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.

 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.