Effects of the Digital Divide: Evidence from African-American and Native-American Owned Micro-Enterprises

Information and Communication Technologies (ICTs) have often been touted as a means of enabling people to make their way out of poverty. While there are success stories of people in Africa who have been able to access and use mobile and Internet- based Technologies to build businesses that give them better livelihoods, it is unclear how these technologies are being used by African American and Native American entrepreneurs in the United States. Pockets of low connectivity and lack of awareness or technical skills mean that some entrepreneurs are unable to take advantage of the opportunities provided by ICTs in the United States. This paper investigates the digital divide in micro-enterprises owned by African-Americans and Native Americans in a midwestern metropolitan area in the United States. Data collected through three case studies are analyzed using a model previously developed to arrive at the level of ICTs needed to support and sustain the micro-enterprises.