Less than 3% of companies nationwide are owned by people of color who manage a business.
However, according to Census Bureau data, the proportion of Black-owned firms has increased by 8.52% over the previous two years. This is faster than the 0.46 percent growth rate experienced by all enterprises. These are some regions of the nation where starting a business is easier for Black entrepreneurs to manage a business.
- Franklin, Murfreesboro, Nashville, Tennessee
- Due to its welcoming atmosphere for start-up businesses and prosperous economic climate for Black households and individuals, Nashville-Davidson-Murfreesboro-Franklin, Tennessee, rates as a top location for Black entrepreneurs. The area’s firms recorded sales of more than $250k in 2019 at a rate of about 74%. The general unemployment rate recently registered at 2.7%, the 13th-lowest among the 57 metro regions, and the 2019 Black unemployment rate was 4.5%.
San Francisco, Oakland-Hayward, California
San Francisco-Oakland-Hayward has the 13th-highest number of Black-owned businesses (2,087) and the 11th-best two-year change in the number of Black-owned businesses (40.54%) in the area of Black-owned company success. The region has the highest start-up early survival rate (81.83%) for new business environments for black entrepreneurs who manage a business. Finally, the 2019 Black unemployment rate was 6.5%, while the median Black household income was approximately $61,700 (fourth-highest) (12th-lowest).
Sandy Springs, Atlanta, and Roswell, Georgia
The Atlanta-Sandy Springs-Roswell metro area is among the top 10 metro areas in terms of six different study parameters. The area has a high proportion of Black-owned businesses (6.67%) and a high number of Black-owned firms (7,539). New enterprises make up around 31% of all businesses in the area, making it the fifth-highest percentage. Additionally, the area has a relatively high median Black family income ($56,245), low Black unemployment rate (5.9%), and a low December 2021 unemployment rate (2.3%), making it a strong performer in economic scenario criteria.
Dallas-Fort Worth-Arlington, TX
The changing economic environment in Dallas-Fort Worth-Arlington, Texas, may appeal to black entrepreneurs who want to manage a business there. Nearly a third of the enterprises in the area were founded in the last three years, with a start-up early survival rate of nearly 80%. Additionally, a lot of companies record significant profits. Data from the Census Bureau show that in 2019, 70.90% of enterprises had sales and receipts that were higher than $250,000.
The nation’s capital has a high proportion of newly established businesses, with more than one in four enterprises having been established in the previous three years. Black business owners in Washington, Arlington, and Alexandria may also have a higher median income of $77,813 to invest in their startups. The area’s Black households have the second-highest levels of income, and the Black unemployment rate of 6.9% is relatively low.
Los Angeles-Long Beach-Anaheim, CA
In Los Angeles-Long Beach-Anaheim, California, there were 7,200 Black-owned enterprises in total in 2019. This is an increase of more than 41% over the previous two years. In Los Angeles-Long Beach-Anaheim, new enterprises account for 30.09 percent of all businesses.
Richmond, Virginia, has had significant success with Black-owned businesses. Nearly 7% of all businesses in the area are owned by the 1,700 or so Black-owned firms. In addition, the proportion of Black-owned companies is rising quickly. According to Census Bureau data, the number of Black-owned firms that manage a business increased by over 54% between 2017 and 2019, which ranks as the sixth-highest growth rate. In addition, with a median household income of $47,445, Black households have the 22nd highest income and the 19th lowest unemployment rate overall (6.9%).
Houston-The Woodlands-Sugar Lands, TX
As per two separate metrics, Houston-The Woodlands-Sugar Lands, Texas, ranks among the top metro regions for both the number of Black-owned businesses (approximately 4,000) and the proportion of new firms to all businesses (30.85%). Additionally, the Lone Star State ranks 11th highest for its start-up early survival rate (79.63%) among the 50 states and the District of Columbia.
San Antonio-New Braunfels, TX
The median income for Black households in San Antonio-New Braunfels is $55,009. It also has the 12th-highest percentage of new enterprises (29.64%). Additionally, out of all 57 metro regions in 2019, the Black unemployment rate was third-lowest (5.2%).
The North Carolina-South Carolina metro areas of Charlotte-Concord-Gastonia do well in the categories of economic climate and success of Black-owned enterprises. Black people own about 4% of local businesses, and in the past two years, their number has climbed by 10.30%. In terms of the status of the economy, Charlotte-Concord-Gastonia has the ninth-lowest Black unemployment rate (6.2%) and the 23rd-highest median Black family income ($46,548). This is a great place to manage a business.
Source: SmartAsset – https://smartasset.com/data-studies/best-places-for-black-entrepreneurs-2022