Businesses under black people in the United States rose to 34.5% between 2007 and 2012. It has led to a total of 2.6 million black-owned firms. About 95% of firms under blacks in the US are sole proprietorships or partnerships without paid employees.During 2021, the percentage of black small-business owners was 28 % more than that of the pre-pandemic period. In February 2022, only 1.2 million African Americans were self-employed. It was slightly lower than the number in February 2020.
Black business people had suffered many hardships even before the pandemic. At present, there are around 134 600 businesses under black residents in the US. This is equivalent to 2.3% of overall businesses. But, there are some US cities where black business ownership is prevalent. Let us learn more about what percentage of businesses are black-owned in the US.
Us Cities With A Majority Of Black-Owned Businesses
The percentage of black business ownership is at its peak in the US. For determining the cities with the most black-owned businesses, data was reviewed by 24/7 Wall Street. The data was taken from the 2021 Annual Business Survey of the US Census Bureau.
The cities were ranked by the percentage of businesses owned by Blacks or African Americans. A larger-than-average share of firms in these US cities have black ownership. That is why these destinations are home to larger-than-average black populations. Here is the list of these cities:
Saginaw, Michigan
About 3.1% of the businesses in Saginaw, Michigan, are under black ownership. This city has a black population share of 19% or 36 205. Also, the black business ownership rate in Saginaw is 50%.
Houston, Texas
Houston is another famous US city with a rate of black business ownership of 3.3%. The black population share in Houston is about 17.2%, and the black median household income is $53 801. Also, this city has a black homeownership rate of 42.5%.
Raleigh, North Carolina
Nearly 3.5 % of businesses are under black ownership in Raleigh, North Carolina. The black median household income in this city is $54 432. Moreover, Raleigh has a black population share of 19. 5%.
Tallahassee, Florida
In Tallahassee, about 3.6% of the businesses are black-owned. The black homeownership rate and black population share of Tallahassee are 42.3% and 32.3%, respectively. Furthermore, the black median household income here is $37,435.
Huntsville, Alabama
Huntsville has about 3. % of businesses under black residents. It also has a black population share of 21.9% and a black homeownership rate of about 51.1%. The median household income for blacks in Huntsville is $44,461.
Indianapolis, Indiana
The percentage of firms under blacks in Indianapolis is 3.3. In this city, the black median household income is $40,282, and a black homeownership rate of 36.8 %. Moreover, the population share of blacks in Indianapolis is 15.2 %.
Also Read: Why Is It Important To Support Black-Owned Businesses?
Industries That Are Most Likely To Be Under Blacks
Nearly 40 % of businesses under blacks are in various industries like healthcare, social assistance, technical services, and more. Folks in the healthcare and social assistance industries include dentists, physicians, and child daycare services.
Best Cities For Black Entrepreneurs
Let us closely look at the US cities that are perfect for black entrepreneurs:
Durham, North Carolina
Durham is evolving as a center for technology startups with co-working spaces and many other facilities. The city strongly promotes social entrepreneurship. Business owners in Durham can acquire resources from the Greater Durham Black Chamber of Commerce.
Atlanta-Sandy Springs-Marietta, Georgia
Atlanta can be an excellent place for black people looking to start a business. This is primarily due to its affordable living cost and robust business environment. Also, Georgia has the third-largest black consumer market in the country, with a worth of more than $73 Billion.
Memphis, Tennessee
Memphis has an affordable living cost and a rich culture, making it a perfect destination for black-owned businesses. The number of black business owners in Memphis is vast. The city thrives in music, television, films, manufacturing, bioscience, and more. Business owners can get resources from a Small Business Council at the Greater Memphis Chamber.
Baltimore, Maryland
More than 270,000 commuters arrive in Baltimore daily. It is quite beneficial for businesses in the city. Business people can get a comprehensive guide to entrepreneurship. The guide has details regarding licenses, zoning, permits, and inspections.
Montgomery, Alabama
The black population in Montgomery is rising quickly in comparison with any other city on the list. Nearly one-third of businesses in Montgomery are under black people. There are two institutes that provide similar resources for small businesses. These are the Alabama State Black Chamber of Commerce and Montgomery Chamber of Commerce’s Minority Business Development Advisory Task Force.
Finding it hard to find black-owned businesses in your area? Connect with ShopBlck.net to find black business owners in your area throughout the US.
Frequently Asked Questions
As per recent data, 3.12 million businesses in the US have most Black or African American ownership.
The businesses under blacks in the US generate a yearly revenue of about $206 Billion. This supports over 3.56 million jobs across the nation.
About 85 % of businesses are under whites, creating a vast racial business ownership gap in the US.