The United States is home to more than two million black-owned businesses, according to the most recent data available from the census. Of this number, 124,000 are defined as “employing companies”, meaning that they have employees in addition to the owner(s). Nine of the top 10 metropolitan areas with the highest percentage of black-owned businesses are in the south. In each of the nine meters, at least 25% of the metro's population is black.
Fayetteville, North Carolina has the highest percentage of black-owned businesses, with 33% of its population being black. Washington, D. C. is also a major hub for black-owned businesses, with 25% of its population being black.
Richmond, VA and Atlanta, GA also have high percentages of black-owned businesses, with 30% and 35% of their populations being black respectively. Researchers also looked at industries to see where black-owned small businesses are most prominent. Unlike black-owned businesses, 86.5% of all businesses are white-owned, even though whites account for only 72.0% of the U. S.
The transport and storage industry is made up of 11 sectors, from air transport to rail transport, postal service, couriers and couriers. Among black-owned businesses, companies in the health care industry again account for the largest percentage, comprising 29.5% of all black companies. Professional, scientific and technical services were the fourth largest industry, accounting for 8% of black companies. Black small business owners were also the most likely to experience difficulties accessing credit (53%).
Policymakers have established racially biased rules for the economy, prohibiting intergenerational wealth transfers among African-Americans, among many other harms. However, equity is not systematically incorporated into the infrastructure bill; consequently, states will vary in their attempts to address past inequality and boost capital to black-owned businesses. Women-owned businesses are growing at a faster rate than the national average, so this may be representative of a broader national trend of women's business growth. Women-owned businesses are more likely to be black-owned than the national average; 35.4% of black-owned businesses are black women-owned.
Black-owned companies are at a clear disadvantage compared to their white-owned counterparts. In addition to the normal challenges of running a business, black business owners must also navigate a sizeable funding gap between black and white owned businesses. According to a survey by the Black Chamber of Commerce, about 75% of Black-owned small businesses experienced an increase in customers in the two months after Floyd's death.The United States is home to an increasing number of black-owned businesses. While these companies face unique challenges due to systemic racism and lack of access to capital, they are still making strides in their respective industries and communities.
With more support from policymakers and investors alike, these companies can continue to grow and thrive.