Black-owned Businesses in the U.S.: A Growing and Vital Economic Force
In a survey conducted by the Pew Research Center, it was found that about six-in-ten Black adults believe that supporting Black-owned businesses is an effective strategy for achieving equality in the United States. However, despite the growth of Black-owned businesses in recent years, they still only represent 2.4% of all employer-firm owners, despite Black Americans making up about 12.4% of the population.
According to the Census Bureau’s 2022 Annual Business Survey, there were an estimated 161,031 Black or African American-owned businesses in operation in 2022 with a total annual revenue of $183.3 billion. These businesses also employed 1.4 million people, paying approximately $53.6 billion in annual payroll.
While the majority of Black-owned businesses have small payrolls, a significant number of them generate billion-dollar revenues each year and employ thousands of workers. Forbes ranks World Wide Technology, a successful company owned by David Steward, as the largest Black-owned business in the U.S. The corporation employs about 10,000 people worldwide and brought in $17 billion in revenue in the past year.
Other notable Black-owned businesses that employ thousands of workers and generate substantial revenues include Thompson Hospitality Corp., Coca-Cola Beverages Florida, Bridge Water Interiors, and ActOne.
Historically, the underrepresentation of Black-owned businesses has led to a shortage of employment opportunities in Black communities, contributing to further racial inequality. Additionally, not only does this underrepresentation hurt Black communities, but it also results in billions of dollars in unrealized revenues for the U.S. economy.
In conclusion, it is clear that Black-owned businesses play a crucial role in the U.S. economy, and supporting them is vital for achieving equality and economic growth. By investing in and promoting Black-owned businesses, the U.S. can create more job opportunities and drive economic development in historically marginalized communities.
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