Data Science Academy, Student Demo day, Data science by R, Vivian S. Zhang, see www.nycdatascience.com for more details.

1. New NYC Business
Incorporation 2005-2013
An Exploration of Non-Minority and
Minority-Owned Enterprise Creation
By Shelby Ahern
stahern@gmail.com
NYC Data Science Academy
Student Demo day 07-21-2014
R005: Data Science by R(Beginner level)

2. Explore
• New Business Incorporation in NYC between 2005-2013, and
• New Business Incorporation, by Minority and Non-Minority Ownership
Data Sources
• Active NewYork Corporations: Beginning in 18001
• NYC Online Directory of Certified Businesses: Minority-Owned Business Enterprises
(MBE)2,3
• U.S. Census Population Estimates4
• EntityType:
• Domestic BusinessCorporation
• Domestic Cooperative Corporation
• Domestic Professional Corporation
Parameters and Notes
• 2005-2013 (9 years)
• Borough = County (ie. Manhattan: NewYork County, Brooklyn: Kings County,
Queens = Queens County, Bronx = Bronx County, Staten Island = Richmond County

3. Create Data Frames of Data from Each Source
Run Summary Statistics forValidation
Split by Borough and Combine DFs from Different Sources
Perform Calculations ie. New Incorporations per Capita
DataViz!
Test:
“Density” of New MBE Corps for Minority Population ≠ “Density” of New
Non-MBECorps per Non-Minority Population

4. 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

5. >MH_Corps
County year NewCorps NewMBECorps Tot_Pop MBE_pop1 NwCorpsperCap NwMBECorpsperCap NwMBECorpsperMBECap
NwNonMBECor
psperCap
1NEW YORK 2005 5101 35 1529774 690696 0.0033 2.30E-05 5.10E-05 0.006
2NEW YORK 2006 5395 42 1611581 738221 0.0033 2.60E-05 5.70E-05 0.0061
3NEW YORK 2007 5373 39 1620867 724926 0.0033 2.40E-05 5.40E-05 0.006
4NEW YORK 2008 5602 38 1634795 696413 0.0034 2.30E-05 5.50E-05 0.0059
5NEW YORK 2009 7617 39 1629054 669583 0.0047 2.40E-05 5.80E-05 0.0079
6NEW YORK 2010 9872 34 1585873 674800 0.0062 2.10E-05 5.00E-05 0.0108
7NEW YORK 2011 9909 24 1601948 703250 0.0062 1.50E-05 3.40E-05 0.011
8NEW YORK 2012 10326 15 1619090 697407 0.0064 9.30E-06 2.20E-05 0.0112
9NEW YORK 2013 10345 3 1585873 546732 0.0065 1.90E-06 5.50E-06 0.01
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

6. $NwCorpsperCap
$NwMBECorpsperCap
Incorporations per Capita and MBE Incorporations per capita, 2005- 2013

7. MBE Incorporations per Capita, 2005- 2013
$NwCorpsperCap
$NwMBECorpsperCap

8. Findings:
The per-capita incidence of incorporations increased across all
boroughs, from 2005 - 2013.
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.

9. 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. SelectValue 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.

10. Histogram, MBE Incorporations per Minority capita QQplot, MBE Incorporations per Minority capita

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

12. 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 MedianTest
A nonparametric test where the null hypothesis of
the medians of the populations from which two or
more samples are drawn are identical. (Wikipedia)
H0: Medians of MBE - Minority cap and Non-MBE --
Non-Minority cap are equivalent.
H1: 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)
H0: MBE - Minority cap and Non-MBE -- Non-
Minority cap could be representative of the
same set of data.
H1: MBE - Minority cap and Non-MBE -- Non-
Minority cap could NOT be representative of the
same set of data.

13. 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.