America Has Over Two Million Black-Owned Businesses
First published: Dec 19, 2018
Addendum added 13 July 2020.
This is great news, and we all have no excuse not to support Black-owned businesses.
According to the United States Census Bureau, there are more than 2 million businesses in the country that are Black-owned. That statistic dispels a lot of rumors that African Americans are not successful in business.
On the contrary, Black-owned businesses are a huge asset to the U.S. economy. But wait there’s more! For a start think of the all the billions generated for the economy by the music industry from RnB, Hip-hop artists and our impact on the entertainment world.
Here are 10 more little-known facts about Black businesses:
1 – The highest ratio of Black-owned businesses is in Washington, DC where 28% percent of ALL businesses there are owned by African Americans.
2 – The second highest ratio of Black-owned businesses is in the state of Georgia, where 20% of ALL businesses there are Black-owned.
3 – Although the ratio is only 10.6%, the state of New York actually has the most Black-owned firms at 204,093.
4 – Of the 2 million Black businesses in the U.S., only about 107,000 of them have actual employees and they employ mo
5 – Nearly 38% of Black businesses are in health care and social assistance, repair and maintenance, and personal and laundry services.
6 – Other popular categories among Black businesses include advertising firms, auto dealerships, consulting services, restaurants, barbershops, beauty salons, and more.
7 – World Wide Technology, a global technology consulting firm based in St Louis, MO, is the LARGEST Black-owned business in the country. Founded by entrepreneur David Steward, they post annual revenues of more than $2 billion.
8 – There are actually many Black-owned businesses that generate millions in annual revenue. For example, Oprah Winfrey’s Harper Productions and Bob Johnson’s RLJ Companies. There is also GlobalHue, an advertising agency in Detroit, that generates more than $480 million in annual revenue; and many, many others.
WHERE IMPROVEMENT IS NEEDED:
9 – African Americans make up more than 13% of the U.S. population, but only own 7% of the businesses.
10 – Nearly 1.9 million of the 2 million Black-owned businesses do not have paid employees. If each of these were able to hire just one or two employees, experts say that would be a huge solution to Black unemployment.
Black Economics Says.
And there we have it. Just over 100,000 of these black owned businesses hire anybody. 95% of these businesses are self-employed people or individuals with side-hustles. Two million businesses sound great, but when you realise that just five per cent can afford to employ others, it brings us back down to earth with a bump.
Are we to blame?
Black Consumers need to spend more with black-owned businesses so that they can employ others.
White and Asian consumers need to broaden where they shop and include black owned businesses as their go to place to by products.
And to business owners – this crazy statistics needs to be addressed. Black business owners need to take their good ideas and get funding so that they can grow their businesses, and employ others. They also need to have strong marketing for their products or services. Nobody can buy if they don’t know you exist.
Many of these business owners are doing mainstream jobs – giving their time and expertise to the general American Economy. That is good but it stimies the growth of black wealth.
There is a multitude of talent and ambition in the community – which needs to be harnessed. If this can be done – we will be a force to be reckoned with.
VC’s need to be seeking out black talent and ideas. Black entrepreneurs need to be seeking out VC’s, and jump through whatever hoops are required for massive growth.