It is National Black Business Month! Just like we use January as a time to think about things we would like to do differently in our lives, we should begin to use August to think about how much we support Black business. Until it becomes a common practice, we must be intentional about spending dollars with Black businesses.
Here are 10 interesting facts about Black-owned businesses in the United States:
- Although African-Americans make up more than 13% of the United States population, African-Americans only own 7% of the businesses.
- 38% of Black businesses are in health care and social assistance, repair and maintenance, and personal and laundry services.
- Of 2 million Black businesses, about 107,000 have actual employees.
- Women comprise 35% of Black business owners, 23% more women than the average.
- Black business owners are 59% percent more likely to be millennials than the average small business owner.
- The three most significant challenges for black entrepreneurs are
- a lack of capital or cash flow;
- marketing and advertising; and
- time management
- African-American businesses owned by women in the American Express State of Women-Owned Business Report earned an average of $24,000 per firm vs. $142,900 among all women-owned businesses.
- During the coronavirus pandemic, more than 40% of black business owners reported not working in April, while only 17% of white small business owners said the same.
- The majority of businesses in predominantly black and Hispanic neighborhoods did not have enough cash to pay for two weeks’ worth of bills.
- New York has the most Black-owned businesses, followed by Georgia, Florida, and Texas.