A look at Black-owned businesses in the U.S.

Nearly six in ten black adults (58%) say that supporting blackness businesses, or “buying black,” is a very effective or very constructive strategy for moving black people toward equality in the Us. While blackness-owned businesses in the United States accept grown significantly in recent years, they still make upward a small share of businesses and revenues in the land, according to a Pew Research Center analysis of Census Bureau data.

In 2020, there were an estimated 140,918 American businesses that were majority owned by Black or African American people, upward 14% from 124,004 in 2017, according to the almost contempo data bachelor from the Demography Agency (ABS) Annual Business Survey. These companies generated an estimated $141.1 billion in total revenue in 2020, an increment of 11% since 2017.

Despite this growth, businesses owned by a majority of Black or African American people accounted for only 3% of all US businesses ranked past the race and ethnicity of their owners in 2020. Blackness-endemic businesses accounted for only 1% of total revenue from black-ranked companies that year. By comparison, blackness adults made upwardly 12.4% of the total US population in 2020, according to the Census Bureau.

Equally has long been the instance, white Americans deemed for a significant majority (86%) of businesses whose ownership was classified by race and ethnicity in 2020. These businesses brought in 93% of all revenue from classifiable businesses that year.

Asian majority-owned US companies deemed for eleven% of all rated companies and 6% of revenue in 2020. Those majority-Hispanic owned companies accounted for 7% of all rated companies and iii% of revenue.

It is of import to note that not all U.s. corporations are classified by the race or ethnicity of their owners. A business is classified equally “bulk black endemic” if the black owner owns at least 51% of the equity in the business. (The same is true for business organisation owners from other racial and ethnic backgrounds.) In 2020, only most 4% of all businesses in the United States were
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classified by the race and ethnicity of the owners – but these companies accounted for 62% of all revenues. For this reason, the ownership and revenue figures in this analysis merely refer to about five.half-dozen million companies
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They are categorized by the race and ethnicity of the owners, most of which are small businesses.

Smaller salaries are common in black-owned companies

Mostly Blackness or African American-endemic companies provided income to more than than 1.3 million workers in 2020, and annual salaries at those companies totaled $42.2 billion that year.

Most black-owned businesses have relatively modest pay scales. nigh 2-thirds (66%) had fewer than 10 employees in 2020; fourteen% had 10 to 49 employees and only three% had fifty or more than employees. (In ABS, employment size is adamant past the number of wage workers during the pay period on March 12 each year, which coincided with the start of the coronavirus outbreak in the United States in 2020. During the 2020 pay period, an additional 17% are majority black – or African-American-owned businesses did not report whatsoever employees).

For about black or African American business owners in the United States, their company is their primary source of income. Of those who reported data on their primary source of personal income in 2020, 69% said their business concern was their chief source of income, while 31% said it was not, co-ordinate to ABS data.

Black-owned businesses are more common in the healthcare sector and in some states

The largest number and share of majority Black or African American owned businesses are in the health care and social aid sector. In 2020, more than than 38,000 of the 141,000 bulk Blackness or African American-owned American companies, or 28% of the total, were in this sector.

I looked a dissimilar fashion, seven% of
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American companies that can be classified into the health intendance and social aid sector had a majority of blackness or African American owners that year.

Professional, scientific, and technical services were the second nearly popular sector, bookkeeping for 14% of businesses owned by Black or African American Americans in 2020. Other shared sectors included management and support services, waste management and remediation (9%), and construction (7%).

The vast majority (88%) of businesses endemic past Blackness or African Americans are located in urban areas. Merely vi% are in rural areas—that is, places with fewer than two,500 residents, nether the Census Bureau’southward definition. Of the 4 most populous states, three also lead in the number of businesses owned past a majority of Black or African American: Florida had 15,149 businesses in 2020, California had 13,729, and New York had 12,636. Simply businesses owned by a majority of Black or African American made up The greatest
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For all companies classified in the Commune of Columbia, Georgia and Maryland.

More half of blackness business owners are men

The gender divide for all American business owners extends to blackness or African American business owners, though by a smaller margin. Of all US companies whose ownership is ranked by gender, 63% were majority owned by men in 2020, while 22% were owned by women and 15% were endemic equally by males and females that yr. Past comparison, 55% of businesses owned by a bulk of Black or African American people in 2020 had male owners, while 37% were endemic by women and 8% were as owned past male and female owners.