top of page

Click button to join the conversation!

OPEN AI INCLUDED OPEN IN OUR DISCORD 

Or, type in 'systemic racism' in search bar 

DOES SYSTEMIC RACISM EXIST?

Share, *Rate this post & leave your comment down below!

Black Owned Businesses in the U.S.

Updated: Oct 15

STATS ON BLACK OWNED BUSINESSES IN BLACK COMMUNITIES:


Here are some statistics about Black-owned businesses in the United States: 

 

Number of businesses: In 2019, there were 3,589,567 Black-owned businesses. 

 

Number of employees: In 2021, Black-owned businesses employed about 1.4 million people. 

 

Annual payroll: In 2021, Black-owned businesses had an estimated annual payroll of $53.6 billion. 

 

Sector distribution: In 2021, the largest sector for Black-owned businesses was health care and social assistance, accounting for 28% of all Black-owned businesses. 

 

Business size: In 2021, two-thirds of Black-owned businesses had fewer than 10 employees. 

 

Growth: Between 2017 and 2020, the number of Black-owned businesses increased by 13.64%, which was larger than the increase in all businesses combined. 

 

Loan approval: In 2022, only 20% of business loans for Black-owned businesses were fully approved, down from 34% in 2019. 

 

State distribution: New York has the most Black-owned businesses in the state, with 204,093. Washington DC has the highest percentage of Black-owned businesses in the country, at 28%

 

Financial help: Black business owners are more likely to rely on family and community for financial help in their first year than to trust a financial institution. 



NUMBER OF BLACK OWNED BUSINESSES:


There are approximately 3.7 million Black-owned businesses in the United States, and 161,422 of those have at least one employee. Black-owned businesses are a significant part of the small business sector and the economy. 

 

Black-owned businesses are especially prevalent in the following sectors:

Health care and social assistance: 45,015 businesses in this sector

Professional, scientific, and technical services: The second-largest sector

Mining, quarrying, and oil and gas extraction: The smallest sector, with a total of 31 businesses 

 

Black-owned businesses face many challenges, including: 

 

Unequal access to capital

Black business owners often have less access to capital than other business owners. 

 

Unequal access to networks

Black business owners often have less access to networks than other business owners. 

 

Unequal access to government contracts

Black business owners often have less access to government contracts than other business owners. 

 

Consumer declines due to racism

Black businesses often experience consumer declines due to racism. 


Number of Businesses: Black-owned businesses make up about 2.4% of all employer firms in the U.S., while white-owned businesses account for 86%.


  1. Employment: Only 4.2% of Black-owned businesses have employees, compared to 20.6% of white-owned businesses.


  2. Revenue: Black-owned businesses generated $206 billion in annual revenue in 2021, while white-owned businesses generate a significantly higher portion of the nation's business revenue.


  3. Growth: Black-owned businesses have seen a 23% growth rate between 2017 and 2021, whereas white-owned businesses have a larger overall share and slower growth rate.


  4. Sector Distribution: Black-owned businesses are more likely to be in sectors like healthcare and social assistance, while white-owned businesses are more diverse in their sector distribution. source source source source



Black-owned businesses face higher closure rates compared to their white counterparts. Several factors contribute to this disparity:


  1. Access to Capital: Black-owned businesses often have less access to capital and weaker banking relationships, which can make it difficult to secure funding.


  2. Location: Many Black-owned businesses are located in areas with higher rates of COVID-19 infections, which can impact their operations.


  3. Federal Relief Funds: There are racial disparities in access to federal relief funds, which can leave Black-owned businesses more financially vulnerable.


  4. Pre-Pandemic Financial Distress: Many Black-owned businesses were already in a financially precarious position before the pandemic, making them more susceptible to closure.


WHO OWNS MORE BLACK BUSINESSES? BLACK MEN OR BLACK WOMEN?


They’re more likely to be men than women. Some 53% of Black-owned firms in 2021 had men as their majority owners, while 39% had women majority owners. Another 8% had equal male-female ownership. source

35 views0 comments

Bình luận

Đã xếp hạng 0/5 sao.
Chưa có xếp hạng

Thêm điểm xếp hạng
bottom of page