The Pew Research Center has highlighted trends in the growth of Black majority-owned businesses across some of the most populous states in the U.S.
These insights depict a vibrant landscape of resilient Black majority-owned enterprises, showcasing their strength, creativity, and dedication, which are vital contributions to communities and the economy at large.
According to the Pew report, states such as Florida, Georgia, Texas, and California are leading the way. Florida boasts 21,064 Black majority-owned businesses, while Georgia has 16,973, Texas follows closely with 16,849, and California rounds it out with 16,826.
Black or African American-owned businesses represent the largest segment of firms in Washington D.C., Maryland, and Georgia.
Collectively, these enterprises employ approximately 1.6 million individuals and contribute an impressive annual payroll of around $61.2 billion to the economy.
Delving deeper into the data, we see that around 71% of Black-owned firms are small, employing between one to nine people.
Meanwhile, 13% employ between 10 and 49 workers, and a modest 3% employ 50 or more workers.
Notably, a significant portion—about 90%—of these businesses are based in urban areas, fostering a vibrant market for their services, while only 5% operate in rural regions.
In the health care and social assistance sectors, Black-owned businesses make up 8% of all classified firms, translating to nearly 50,000 of the 195,000 U.S. companies with majority Black ownership.
Furthermore, about 14% of these businesses operate in professional, scientific, and technical services, while 9% are involved in transportation and warehousing. Representation in administrative and support services, retail trade, and accommodation and food services is also significant, addressing community needs.
In terms of ownership demographics, 54% of Black-owned businesses have male owners, compared to 39% owned by females and 7% with equal male and female ownership.
Half of the Black business owners are aged between 35 and 54. Additionally, 26% are aged 55 to 64, 16% are 65 or older, and only 7% are under 35.
Notably, 88% of Black business owners believe that owning a business provides the best platform to showcase their ideas, goods, and services.