As the number of American businesses across the country increased by 18%, so did the number of Black-owned businesses; Black-owned firms expanded by 60.5% to 1.9 million between 2002 to 2007, more than triple the national rate according to U.S. Census data.
A Black-owned business is defined by the government as a firm with African-American owners holding either a 51% or greater stake in the business, which altogether accrued $137 billion in sales and receipts, and comprised 7.1% of businesses nation-wide in 2007, compared to only 5.2% in 2002. But while the growth of Black businesses is continually growing, many of these businesses still remain small.
According to National Urban League President, Marc Morial, Black American firms remain small with the 87% of all Black-owned firms earning less than $50,000 dollars a year in receipts.
The data comes from Survey of Business Owners: Black-Owned Businesses, which provide information only every five years about Black-owned businesses, which include the number of firms, sales and receipts, number of paid employees, and annual payroll information.
Certain industries heavily saturated with Black owners are industries such as health care and social assistance (19% of Black-owned businesses), repair and maintenance, and personal and laundry services (19% of Black-owned businesses), and administrative and support, waste management, and remediation service industries, which comprise just 11% of Black-owned businesses.
It’s very important for people from every community in the country to glean information from the report, a profile that showcases Black-owned firms in your city in terms of size, and in terms of numbers in order to utilize African American firms. Supporting your community’s businesses only enhances your community, and the concentrated support of local businesses also develops coherent economic growth and economic development plans. Although Black-owned businesses remain relatively small, the fact that there’s still an increase in African American business ownership and an increase in interest for entrepreneurship means that by focusing the attention on the support of Black-owned businesses you can create jobs, economic growth in your own community, as well as communities around the world.
The list has been broken down into City versus State for African American firms, with both lists varying from each other.
As of 2007, the top four cities with the most Black-owned businesses are as follows:
1. New York City (154,929)
2. Chicago (58,631)
3. Houston (33,062)
4. Detroit (32,490)
As of 2007, the top three states with the most Black-owned businesses are as follows:
1. New York (204,032)
2. Georgia (183,874)
3. Florida (181,437)
The numbers, comprised of 10.6%, 9.6%, and 9.4% respectively make-up Black-owned businesses nationwide.
(ABC News and Survey of Business Owners: Black-owned Businesses report, Detroit had or has the highest percentage of African American owned businesses within the city’s limits at 64%). A good puissant effort, but a long road still remains for the progression of Black-owned firms, and those obstacles and barriers will consistently be broken down by a consistent and tenacious effort on behalf of countless various people.)
Next Black-owned Business report from the Survey of Business Owners comes out 2013. Continue to read at CNN Money for more information!