Statistics on Black-Owned Businesses in the US

Black-owned businesses currently represent 7.9% of total businesses in the United States, but only 0.7% of the country’s GDP.

  • There are currently 2.58 million Black-owned businesses in the US, per top-tier media outlets (e.g., Forbes), reputable business associations (e.g., Association for Enterprise Opportunity), experts in black businesses (e.g., Black DemographicsBLNDED Media) and established publications (e.g., New Pittsburgh Courier).
  • While other credible outlets (e.g., Investopedia) regularly report much smaller numbers of Black-owned businesses in the country, a deeper look at the metadata leveraged in these reports indicates that such finding either misrepresent reputable statistics or reflect only sub-populations (e.g., employer firms) of Black-owned companies in the US.
  • Considering that there are 32.5 million businesses in the US, Black-owned companies represent only 7.9% of these organizations.
  • Moreover, Black-owned businesses account for only 0.7% of US GDP, given that these minority-owned companies produce approximately $150 billion in annual revenue towards the country’s $20.54 trillion in annual GDP.


Number of Businesses


General Background on Black-Owned Businesses in the US

Comparison with All Businesses in the US

  • Black-owned businesses in the US have “lagged behind” other firms in the country for decades, according to the Association for Enterprise Opportunity (AEO).
  • Perhaps most notably, African Americans represent 13.4% of the US population, but approximately half of that share in terms of business ownership.
  • Additionally, Black-owned companies have fewer employees on average (9 employees) than nonminority-owned firms (11 employees).
  • Moreover, the average revenue of Black-owned businesses in the US tends to be lower, in part because of their concentration in “industries where revenue is low and sometimes much lower” than those led by nonminority-owned companies.
  • Geographic location is also likely a factor in the lower revenue of Black-owned companies, given that one-third of these firms are located in the Southern US, which has some of the “highest poverty rates in the country.
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