Growing Black-owned businesses in US Top sectors to explore

13 Feb, 2024

Growing Black-owned businesses in US Top sectors to explore

About six-in-10 Black adults affirm the efficacy of supporting Black businesses as a potent strategy for advancing equality in the U.S., according to a Pew Research Center survey.

A concerning discrepancy exists between the number of Black-owned businesses and the Black population in the U.S. While Black Americans constitute approximately 12.4% of the populace, only 2.4% of all employer-firm owners are Black. Conversely, white Americans, who make up about 59% of the population, represent 86% of employee-firm owners.

According to the Census Bureau, the count of Black-owned businesses surged by 14% in 2021, reaching 161,031 establishments with $183.3 billion in annual receipts. These businesses employed around 1.4 million individuals and collectively disbursed $53.6 billion in payroll. Notably, the Health Care and Social Assistance sector harbored the largest number of Black-owned firms, totaling 45,015.

Following closely, the professional, scientific, and technical services sector emerged as the second-largest domain for Black-owned businesses, while mining, quarrying, oil, and gas extraction witnessed minimal representation with only 31 businesses.

Research underscores the pivotal role of Black-owned businesses in mitigating unemployment among Black communities. The underrepresentation of such enterprises not only exacerbates racial disparities but also entails significant economic losses for the nation.