What is the Percentage of Black-Owned Businesses in America?

The population of the United States has become more diverse over the years.

The ethnic and racial diversity of the country has significantly increased, as well as the ownership of businesses.

The diversity of owners shows the changing profile of the country’s population.

In 2020, Atlanta, GA, recorded the highest percentage of Black-owned businesses across the 50 metros in the United States.

Do you want to know what is the percentage of Black-owned businesses in America in 2024 and other interesting facts about businesses with Black owners?

Just continue reading.

What is the Percentage of Black-Owned Businesses in America in 2024?

According to the latest data, 9.75% of businesses in America are Black-owned.

This is equivalent to approximately 3.24 million of the 33.2 million total businesses owned by different races and ethnicities in the country.

In 2018, the nonemployer Black-owned businesses were around 3,115,000, up from 2,951,000 in the previous year.

In 2019, the number of Black-owned businesses in the country with more than one employee reached 134,567, accounting for 2.33% of the total businesses in the US.

After a year, there were 140,918 Black-owned businesses with more than one employee across all sectors of the US economy, equivalent to 2.44%.

Highest Percentage of Black-Owned Businesses in America

Atlanta holds the highest percentage of Black-owned businesses among the 50 metros in America in 2020, with 7.4%.

It replaces Fayetteville, N.C., which was the top across the 50 metros in the country in the previous year.

On the other hand, Portland, Oregon, has the lowest percentage of Black-owned businesses among the 50 US metros, with 0.9%.

Statistics in Key Locations

Let’s take a look at the highest percentage of Black-owned businesses across the 50 metros examined in America in 2020:

• Atlanta, GA, holds the highest percentage of Black-owned businesses among the 50 metros in America. It recorded 8,663 Black-owned businesses in 2020, equivalent to 7.4% of Atlanta’s total businesses.
• Washington, D.C., holds the second-highest percentage of Black-owned businesses among the 50 metros in America. It recorded 7,933 Black-owned businesses in 2020, equivalent to 7.0% of Washington’s total businesses.
• Virginia Beach, VA, holds the third-highest percentage of Black-owned businesses among the 50 metros in America. It recorded 1,937 Black-owned businesses in 2020, equivalent to 6.8% of Virginia’s total businesses.

Statistics in Other Key Locations

Here is a look at the health of black-owned businesses in other key locations:

• Columbus, GA, holds the fourth-highest percentage of Black-owned businesses among the 50 metros in America. It recorded 4,062 Black-owned businesses in 2020, equivalent to 6.7% of Columbus’ total businesses.
• Memphis, TN, holds the fifth-highest percentage of Black-owned businesses among the 50 metros in America. It recorded 18,024 Black-owned businesses in 2020, equivalent to 6.4% of Memphis’ total businesses.

Leading Industries for Black-Owned Businesses

The businesses in America with Black owners reached almost 141,000 in 2020, with $141.1 billion in annual sales. 

4 out of 10 Black-owned businesses in the country were from the two leading industries, particularly the “health care and social assistance industries” and “professional, scientific, and technical service industries.”

More than 27% were in healthcare and social assistance.

Black-owned Business by Industry

However, the industries with the least number of Black-owned businesses in America were the “utility industry,” with 34 Black-owned businesses, and the “mining, quarrying, and oil and gas extraction industry,” with 52.

Here are the leading industries/sectors for Black-owned businesses in America in 2020:

• 38,819 Black-owned businesses in America in 2020 were in the Health Care and Social Assistance industry, equal to 27.5%.
• 19,575 Black-owned businesses in America in 2020 were in the Professional, Scientific, and Technical Services industry, equal to 13.9%.
• 12,743 Black-owned businesses in America in 2020 were in the Administrative and Support, Waste Management, and Remediation Services industry, equal to 9.0%.
• 10,330 Black-owned businesses in America in 2020 were in the Construction industry, equal to 7.3%.
• 9,581 Black-owned businesses in America in 2020 were in the Transportation and Warehousing industry, equal to 6.8%.

Business Owners in the United States by Race

Among all the races of business owners in the United States, White owners accounted for the highest percentage, with almost 83% of the total US business owners.

Black owners accounted for 2.4%.

Below is the list of races of business owners in the United States in 2020:

• White business owners owned 82.7% of businesses in the United States in 2020.
• Asian business owners owned 10.6% of businesses in the United States in 2020.
• Black or African American business owners owned 2.4% of businesses in the United States in 2020.
• American Indian and Alaska Native business owners owned 0.7% of businesses in the United States in 2020.
• Native Hawaiians and other Pacific Islander business owners owned 0.2% of businesses in the United States in 2020.

Conclusion

The number of Black-owned businesses in America is continuously growing.

Approximately 5.78 million businesses were owned by different races and ethnicity in the US in 2019. 

Among those figures, the Black-owned businesses with more than one employee were almost 135,000 or 2.3%.

Recently, all Black-owned businesses in the country exceeded 3 million, accounting for nearly 10% of all businesses in America.

Now you know the percentage of Black-owned businesses in America, and other interesting facts about various businesses in the country.

Sources

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