Black entrepreneurs and businesses form an integral part of the U.S. economy, contributing to its growth and dynamism. This brief highlights the key contributions of these businesses and the challenges they face in today’s economy:
- More than 3 million Black-owned businesses contribute over $200 billion to the U.S. economy annually and employ about 1.2 million Americans.
- Between 2012 and 2017, the number of Black-owned businesses grew at a faster pace than the number of white-owned businesses.
- Black businesses are also more likely to be owned by women, and they have historically provided a pathway to wealth creation.
- Long-standing barriers to financing continue to limit Black business formation and development. They also leave Black-owned businesses more vulnerable to economic shocks. This is why Black businesses were disproportionately affected by the pandemic, and many struggled to access early emergency relief.
- The Biden administration and Congress have worked to strengthen the Minority Business Development Agency (MBDA), which provides improved access to capital, technical assistance and development training for Black-owned businesses of all sizes. More will be required to address structural barriers to opportunity and wealth creation.
Read the full report below.