Many entrepreneurs from the Black community start their own businesses, drawing inspiration from the diversity and vibrancy of African-American culture. You’ll find Black-owned clothing shops, hair care and makeup brands, and even companies making cool children’s toys, among other things. Some Black-owned businesses pop up to provide services that cater specifically to the needs of their communities.
There are more than 3 million Black-owned businesses in the U.S.
According to data from the U.S. Census Bureau, Black-owned enterprises have collectively generated approximately $217 billion in revenue and have contributed to the employment of over 3.56 million people across the United States. In 2019, fewer than 200,000 Black-owned businesses were in the United States.
This significant increase in Black-owned businesses is largely attributed to the COVID-19 pandemic. At the beginning of the pandemic, Black workers, particularly Black women, faced early layoffs, which prompted many to start their own businesses out of necessity to maintain a steady income.
Furthermore, government initiatives such as stimulus checks and the Paycheck Protection Program (PPP) injected substantial funds into the economy, and Black entrepreneurs utilized these funds as vital seed capital for launching their businesses.
Growth of Black-owned enterprises
Another significant factor in the growth of Black-owned enterprises was the increased focus on social equity in 2020. Many major corporations and organizations started campaigns and minority business support programs to assist Black entrepreneurs in various aspects, including obtaining seed funding, establishing a digital presence, and distributing their products through nationwide retail outlets. Retail giants also began labeling Black-owned products so customers could easily find and support these businesses.
Black entrepreneurs seized the opportunity presented by the pandemic to take control of their financial futures. As a result, they’ve made a real impact in a wide range of industries, from spirits and food to hair and beauty products, and beyond.
There’s still a need for Black-owned business
Despite these positive developments, there remains a pressing need for a greater number of Black-owned businesses. Forbes reported that Black Americans account for 14.2% of the U.S. population, yet Black-owned businesses represent less than 5% of all businesses in the country.
5 Black Athletes You Didn’t Know Were In The Wine Industry
