By Stacker
- Only 3.2% of employer firms (those with at least one employee) are Black-owned
- Atlanta, Sandy Springs and Roswell in Georgia, have 9x as many Black-owned businesses as would be expected based on population alone
Despite gains in recent years, Black entrepreneurs are still underrepresented Although Black and African Americans represent 13.7% of the population, only 3.2% of employer firms (those with at least one employee) are Black-owned. This discrepancy highlights both the challenges and the untapped potential within the community.
Black entrepreneurs see the most success in Southern metro areas
Black-owned businesses in the South exceed national averages. For example, Atlanta-Sandy Springs-Roswell, Georgia, has nine times as many Black-owned businesses as would be expected based on population alone. The metro areas with the highest concentration of Black-owned employer firms include:
1. Atlanta-Sandy Springs-Roswell, Georgia
- Businesses that are Black-owned: 10.7%
- Black population: 34%
- Black-owned businesses: 13,091
- Black-owned businesses per 10k: 62
2. Fayetteville, NC
- Businesses that are Black-owned: 9.9%
- Black population: 36.8%
- Black-owned businesses: 472
- Black-owned businesses per 10k: 33
3. Washington-Arlington-Alexandria, DC-VA-MD-WV
- Businesses that are Black-owned: 9.4%
- Black population: 24.9%
- Black-owned businesses: 10,627
- Black-owned businesses per 10k: 68
4. Memphis, TN-MS-AR
- Businesses that are Black-owned: 9.1%
- Black population: 46.8%
- Black-owned businesses: 1,477
- Black-owned businesses per 10k: 24
5. Virginia Beach-Chesapeake-Norfolk, VA-NC
- Businesses that are Black-owned: 8.8%
- Black population: 29.7%
- Black-owned businesses: 2,357
- Black-owned businesses per 10k: 44
6. Baltimore-Columbia-Towson, MD
- Businesses that are Black-owned: 8.0%
- Black population: 29.0%
- Black-owned businesses: 4,201
- Black-owned businesses per 10k: 51
7. Richmond, VA
- Businesses that are Black-owned: 8.0%
- Black population: 28.5%
- Black-owned businesses: 2,011
- Black-owned businesses per 10k: 53
8. Columbus, GA-AL
- Businesses that are Black-owned: 7.8%
- Black population: 42.3%
- Black-owned businesses: 379
- Black-owned businesses per 10k: 27
9. Tallahassee, FL
- Businesses that are Black-owned: 7.6%
- Black population: 31.9%
- Black-owned businesses: 563
- Black-owned businesses per 10k: 45
10. Durham-Chapel Hill, NC
- Businesses that are Black-owned: 7.5%
- Black population: 24.0%
- Black-owned businesses: 837
- Black-owned businesses per 10k: 59
At the state level, Washington DC, Maryland, and Georgia have the highest concentration of Black-owned employer businesses, by a wide margin
The District of Columbia, Maryland, and Georgia each have about 50% more Black-owned businesses compared to other states. While 9% of employer businesses in Georgia are Black-owned, only 5% of employer businesses in Mississippi are Black-owned, even though the state has the second-highest concentration of Black population.
Transportation is the second most popular industry for Black entrepreneurs
While only 3.2% of employer firms are Black-owned, 6.9% of transportation and warehousing firms are Black-owned — more than twice the national average. Other popular industries include health care and social services, administrative support, and entertainment.
Methodology
All data was sourced from the U.S. Census Bureau for 2023, the most recent data available. Only businesses that employed at least one individual were included in the analysis.
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