As the Black Lives Matter movement continues to gain momentum, there has been a steady rise in the number of black-owned businesses popping up across America. These entrepreneurs are not only breaking down barriers but also creating change in their communities and beyond. From innovative startups to established companies, these businesses are making significant contributions to society while paving the way for future generations.
Black-owned businesses are making a major impact in the U.S. economy, contributing $2 trillion to the country’s GDP and employing over 10 million people. These businesses are thriving because they are innovative and committed to creating change.
Some of the most successful black-owned businesses include HBCUs (historically black colleges and universities), health care providers, technology companies, and green energy companies. HBCUs have been a major driver of entrepreneurship and economic development within the African American community. They provide essential educational opportunities for students, promote job growth, and contribute billions of dollars to the economy each year.
Healthcare providersare another critical part of the black-owned business ecosystem. Nearly half of all black-owned businesses operate in healthcare, providing jobs and services that range from physicians’ offices to hospitals to home health care agencies. Black-owned hospitals play an important role in communities across the U.S., providing vital medical care and serving as hubs for innovation and entrepreneurship.
Technology companiesare another important part of the black-owned business ecosystem. Black entrepreneurs have played a leading role in developing some of the world’s most popular software applications, including Facebook, Instagram, and Google Maps. These companies not only create new products and services; they also employ thousands of people across America who rely on them for their livelihoods.
Finally, green energy companiesare another key part of the black-owned business ecosystem. Black businesses account for nearly two thirds of all businesses in the solar energy industry, and they are influential leaders in the wind energy sector as well. These companies are driving innovation and growth in the renewable energy market, and they are helping to create jobs and expand the economy across the U.S.
Since the African American consumer market has been growing at a rapid pace, there has been an increase in black-owned businesses. Historically, black businesses were not allowed to prosper and grow due to a number of economic and social factors. However, through entrepreneurship and innovation, many black-owned businesses have broken down these barriers and are creating change.
According to The Atlantic, “the number of black-owned businesses in the U.S. reached an all-time high of 927,000 in 2016,” which is up from 645,000 in 2006. This growth can be attributed to a number of factors, including increased access to capital and networking opportunities. Additionally, the Trump administration has provided support for black business owners by launching initiatives such as the Black Entrepreneur Initiative and the National Black Chamber of Commerce Business Development Program.
For example, while the majority of black-owned businesses are small (with fewer than 50 employees), they account for over half of all new job creation among small businesses across all races. Furthermore, while black-owned firms generate $2 trillion in annual revenue, they employ only about one percent of the workforce — compared with white-owned firms that employ about seven percent of workers overall.”
There remain significant barriers to entry for black-owned businesses, despite progress in recent years. One major obstacle is the lack of capital available to these businesses. A study by the National Small Business Association found that black businesses are three times more likely than white-owned businesses to have zero or negative net worth. This means that when a black business falls on hard times, there is little cushion to catch it.
Other barriers include biased lending and investment practices, lack of access to capital, and a racialized criminal justice system that targets black entrepreneurs. The Obama Administration has taken steps to address these issues, issuing Executive Orders and guidance documents aimed at increasing access to capital and promoting entrepreneurship among minority groups. These efforts are needed if we hope to see more black-owned businesses thrive and create tangible change in our communities.
There are many ways for black-owned businesses to break down barriers and create change. They can use networking opportunities, government resources, and financial support to help them grow. They can also work to improve their image by creating positive customer experiences, and by being advocates for social justice and equality. Finally, they can use the power of storytelling to engage people in their work and inspire them to take action.