The number of publicly traded companies owned by black entrepreneurs is surprisingly low. According to the Washington Post, since the onset of the COVID-19 pandemic, ownership and black businesses on Wall Street have dropped by more than 40%. Despite these challenges, some black-owned businesses have managed to become major public companies. Here is a look at some of the largest black-owned publicly traded companies, organized by total assets.Carver Bancorp (CARV) is the holding company of Carver Federal Savings Bank, a federally authorized savings bank.
Founded in 1948 by a group of community leaders and small business owners, Carver provides commercial and consumer banking products and services to traditionally underserved African American communities. The Treasury Department has designated the bank as a Community Development Financial Institution (CDFI) due to its commitment to serving those who would otherwise be excluded from the financial system. According to the SBCS, 79% of Asian-American owned companies and 77% of black-owned companies reported that their financial situation was poor or fair, while only 54% of white-owned companies reported similar conditions.In addition to the disparities between black and white stock owners, opportunities to invest in black-owned businesses through public trade remain scarce. This disproportionately affects black-owned businesses, 95% of which are non-employer companies, compared to 78% of white-owned companies.
While this list is quite short, there are approximately 2 million black-owned businesses across the country that together employ some 920,000 people. In fact, according to the House Small Business Committee report, big banks approve approximately 29 percent of applications for loans from black small businesses compared to 60 percent of white businesses and black business owners often have to apply for loans with higher interest rates.Urban One is probably one of the best-known media, broadcasting and publishing companies targeting the black community. These black companies often create opportunities in communities that banks and large companies and investors often overlook. Some succeeded in getting their companies approved by Securities and Exchange (SEC) Initial Public Offering (IPO) requirements and became publicly traded stocks.
It was quite surprising to find out that out of the 2.6 million black businesses in the United States, only 12 of them are listed on the New York Stock Exchange.Despite defining what constitutes a minority-owned public company, the NMSDC does not provide any concrete data on the exact number of black-owned public companies active in the United States.