Black businesses are profitable.
The University of Cincinnati Alpaugh Family Economics Center for the Greater Cincinnati released a report that examined 1,417 Black-owned businesses across eight counties in Southwest Ohio and Northern Kentucky in partnership with the Greater Cincinnati and Northern Kentucky African American Chamber of Commerce (AACC).
The report revealed that Black-owned businesses generated over $2.8 billion in 2023. This total includes $1.5 billion in direct sales, supporting 9,024 jobs, and $1.4 billion in indirect sales, resulting in 7,448 additional jobs.
“Business ownership provides an opportunity to build wealth for Black or African American individuals,” the report’s authors wrote. “Such an opportunity is particularly significant for Black or African American families, whose median net worth of $24,100 was 7.8 times lower than the median net worth of white families in 2019. Furthermore, Black- and other minority-owned businesses bring additional entrepreneurship to their communities and impact their local economies. The rate of business creation nationally has been driven by minority-owned firms.”
Reflecting on the report, Eric H. Kearney, AACC president, emphasizes the need for broader representation and growth for Black-owned businesses rather than focusing solely on the $2.8 billion figure.
“I think the sexy headline is $2.8 billion,” said Kearney, according to WCPO-TV. “I would like to see Black-owned businesses spread out and appreciate all of the opportunities and growth that’s available in Ohio. [The $2.8 billion figure] only represents about 2% of Greater Cincinnati’s gross domestic product, so it’s not a huge number. The [Black] population percentage is around 12 to 14%, so if you were to compare, that’s not a good comparison.”
A key aspect of that growth will be made possible if barriers are removed so that Black entrepreneurs can receive capital. Statistically, around 44% of Black business owners revealed they have faced stumbling blocks when looking for funding, Bloomberg mentioned.
“We may have the ambition to do something, we just don’t have that capital,” explained Nijah Adams, founder of Cincinnati, OH-based Skin Haven Aesthetics, per WCPO-TV. “I got a second job, and I just built up from my own dollar.”
Adams used a small business loan during COVID-19 to support the business launch, and she believes opening gateways to ensure grant funding can be more accessible will greatly benefit nearby Black business owners.
“You saw a lot of places opening up and thriving because they just needed that little extra push of capital,” Adams said, according to the outlet. “I really expect it to be more, but that comes with making a lot of grants available for minorities and just making it a little easier.”
Cincinnati, OH, locals needing assistance can turn to the AACC, which provides access to 120 resources. To get started, complete this form.