Black-Owned Businesses by the Numbers
By: Kyleah Bodden
There are around 31 million business owners and entrepreneurs across the United States, meaning that entrepreneurs and business owners make up around 16% of the adult workforce. However, many business statistics are reflective of the various forms of economic, social, and institutionalized oppression in the U.S.
Despite the large number of adults that own their own business in America, only between 2 and 3.12 million business owners are Black. What is even more unfortunate is that only around 20% of Black-owned businesses survive the startup stage. US census data shows that 8 out of 10 businesses collapse within the first 18 months. On a higher note, while apparently accounting for 14% of the female population, Black women are the owners of 42% of women-owned businesses.
The disparity in businesses owned by Black people is directly related to the many issues that surround the socio-economic and institutional wellbeing of Black Americans. Many entrepreneurs start their businesses from their own personal funds, and with many Black people in America generating less wealth than their white counterparts, the construction of a business becomes a financial burden. Similarly, Black business owners often encounter barriers to bank loans and many other sources of institutional capital, with less than 47% of financing applications submitted by Black business owners being rejected and essentially being two times more likely to be rejected for a financial loan. From a more social aspect, almost 80% of Black-owned businesses have reported facing racist remarks from customers and 48% reported facing racism in the past year.
Regardless of the many obstacles Black business owners face, the amount of businesses owned by Black Americans continues to rise, demonstrating the resilience and perseverance that is embedded in Black American culture. Black-owned businesses are the cornerstone of communities like ours in New Bedford. On Saturday, June 17th from 11am-3pm at the Rotch-Jones-Duff House, we’ll have the opportunity to buy goods from dozens of local Black vendors. By investing in and purchasing from Black-owned businesses, we can all play a role in contributing to their success!
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