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BLACK BUSINESS STATISTICS 

BUSINESSES IN THE UNITED STATES 

There are 33.2 million small businesses in the United States.​

Black owned businesses make up 3.1 million those businesses.

There are 33.2 million small businesses in the United States.​

Black owned businesses make up 3.1 million those businesses.

27.1 million small businesses have no employees

2.9 million Black owned businesses with no employees. 

There are 5.9 million small businesses employer firms

Only 161,031 are Black owned businesses.

Black-owned businesses are much more likely to be nonemployer firms (sole proprietorships).

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There were an estimated 161,031 Black or African American-owned businesses with $183.3 billion in annual receipts, 1.4 million employees, and about $53.6 billion in annual payroll. About 45,015 (28%) of these businesses were in the Health Care and Social Assistance sector.

Percentage of black owned
businesses by industry

In 2019, only 4.1% of Black-owned businesses were employer firms, compared to 19% of white-owned businesses. Minorities as a whole make up almost 1 million employer firms  The majority of those businesses are self employed venture while and estimated 161,031 are employer firms that employ 1.4 million employees Their annual payrolls were estimated at $53.6 billion. Still, most Black-owned firms tend to be smaller businesses. Two-thirds had fewer than 10 employees in 2021; 13% had 10 to 49 employees and just 3% had 50 or more. Another 16% reported having no employees. Black-owned businesses are much more likely to hire Black workers. Port St. Lucie, Florida has the highest employee pay for Black businesses in the country, with an average salary of $49,371 per employee.

  • There were an estimated 161,031 Black or African American-owned businesses with $183.3 billion in annual receipts, 1.4 million employees, and about $53.6 billion in annual payroll. About 45,015 (28%) of these businesses were in the Health Care and Social Assistance sector.

Percentage of black owned businesses by state

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Percentage of black owned
businesses by industry

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challenges faced 

According to a 2018 study by the U.S. Small Business Administration, most entrepreneurs start their businesses using personal or family wealth. But the study finds that Black entrepreneurs are more likely to rely on personal credit cards to finance their business creation. This is due in part to barriers to bank loans and other sources of institutional capital, but is also the result of staggering inequalities that impact how much wealth is held by Americans of different racial groups.  

According to our analysis of 2019 Census Bureau data, Black people with positive net worth have assets that are primarily tied up in real estate—mainly homeownership. But in the U.S., the homeownership rate varies significantly by race and ethnicity, and is lowest for Black people. According to the Census Bureau, in the third quarter of 2020, the homeownership rate for white non-Hispanic Americans was 75.8%, compared to 61% for Asian Americans, 50.9% for Latino or Hispanic Americans, and 46.4% for Black Americans.  

Black families are not only less likely to own a home, but according to Brookings’s Hamilton Project, “their homeownership yields lower levels of assets.” Among homeowners, Black families’ median home value is $150,000, compared to $230,000 for white families. Black people are also underindexed in businesses, stocks, bonds, and other assets that can increase their net worth. In addition, assets that Black people hold have lesser value, lessening their ability to start businesses.   

While increasing Black business ownership would certainly have a positive economic impact on Black households and communities, renewed fiscal support from federal, state, and local governments is needed to mitigate the racial wealth gap. Data and research show that on average, Black people have higher unemployment rates, lower earnings, lower rates of homeownership, and pay more for credit and banking services—all factors that result from a history of structural racism and contribute to vast disparities in wealth creation and accumulation between Black households and white households.

Lower personal wealth inhibits Black business creation  

Why Black Business are so important 

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STOLEN IDEAS 
LOSE OF CULTURAL IDENTOTY 
LESS MONEY FOR RESOURCES IN THE COMMUNITES 

BLACK-OWNED BUSINESSES BUILD UP COMMUNITES CREATE  GENERATIONAL WEALTH AND RESIURCES FOR ALL

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