The U.S. Census Bureau says there are more than 3.6 million Black-owned businesses in the U.S. today, a significant jump from pre-coronavirus levels.
According to U.S. Census Bureau data, Black-owned businesses have generated $217 billion in revenue and are supporting more than 3.56 million jobs across the U.S. In 2019, the number of Black-owned businesses across the U.S. was less than 200,000.
The significant jump in Black-owned businesses is attributed to the COVID-19 pandemic. Black workers were among the first laid off at the pandemic’s start, especially Black women. Many started businesses out of necessity to keep money coming in.
Additionally, through stimulus checks and the Paycheck Protection Program (PPP), the government gave out trillions in funds that Black entrepreneurs used as seed money for startup costs for their businesses.
Another factor in the growth of Black-owned businesses was the 2020 Black Lives Matter movement and the focus on social equity. The deaths of George Floyd and Breonna Taylor led to a summer of national and worldwide protests. As a result, many large corporations and organizations started business accelerators and minority business programs to help Black entrepreneurs do everything, including obtaining seed money, creating a digital presence, and getting their products in retail stores across the country. Retail giants also began labeling Black-owned products so customers can find and support Black-owned businesses.
“After the BLM movement and the appearance of the Black Lives Matter hashtag on Kickstarter, African American entrepreneurs’ fundraising projects were nearly four times more successful than before,” said Yoon Koh, the lead author of a study on the Black Lives Matter movement and African American entrepreneurs’ crowdfunding success said. “We expected the BLM movement and the hashtag on Kickstarter would influence African American founders’ fundraising success, but we didn’t expect the degree to be nearly four times higher.”
Millions of Black entrepreneurs used the pandemic to put their financial success into their own hands. As a result, they have made waves in several businesses, including spirits, food, hair and beauty products, and much more.
Despite the good news, more Black-owned businesses are needed. According to Forbes, Black Americans make up 15% of U.S. citizens. However, Black-owned businesses make up less than 5% of all businesses in the U.S.