In the United States, more than one in five black adults say that possession of a business is essential to their personal definition of financial success, according to a 2023 Pew Research Center Survey. While companies belonging to blacks have developed considerably in the United States in recent years, they still constitute a small part of companies and global income, according to our analysis of federal data.
In 2022, there was 194,585 American companies with a majority black or African-American property. It’s nine 124,004 in 2017According to the latest estimates of the Annual commercial survey (ABS), led by the US Census Bureau and the National Science Foundation. The gross revenues of companies belonging to blacks climbed 66% during this period, going from $ 127.9 billion in 2017 to 211.8 billion dollars in 2022.
Despite this growth, the majority of companies belonging to blacks represented only about 3% of all American companies in 2022 which were classified by the race and ethnicity of their owners. And they represented only 1% of the raw income of all classified companies that year. In comparison, in 2022, About 14% of all Americans were black.
Like that long been the caseCompanies belonging to the white majority constituted the largest share of classifying companies (84%) and their income (92%) in 2022. About a classifiable company (12%) had 8%had majority owners of another racial group or ethnic.
How many workers use companies belonging to blacks?
Black or African-American companies belonging to the majority employed around 1.6 million workers in 2022. The annual wage bill of companies was estimated at $ 61.2 billion.
About seven companies belonging to blacks (71%) counted between one and nine employees in 2022. Much smaller shares had 10 to 49 (13%) or 50 or more workers (3%) that year. 13% additional had paid employees at a certain time during the year, but did not declare that they did not have them at the time of the survey. (ABS determines the size of the employment by the number of workers paid during the pay period on March 12.)
What is the most common sector for companies belonging to blacks?
By far, health care and social assistance. Nearly 50,000 of the approximately 195,000 American companies with a majority black or African-American property, or 26% of the total, were part of this sector in 2022.
Looked at a different way, 8% of all Classifiable American companies in the health care and social assistance sector were the majority belonging to blacks that year.
The other common sectors included:
- Professional, scientific and technical services (including around 14% of all companies belonging to blacks)
- Transport and storage (9%)
- Administrative, support and waste management and sanitation services (8%)
- Retail (7%)
- Accommodation and food services (7%)
Where are companies belonging to blacks?
Most black or African-American companies belonging to the majority (90%) are located in urban areas. Only 5% are in rural areas-that is to say places of less than 5,000 inhabitants, under Definition of the census office. The remaining 5% could not be classified by community type.
Some of the most populated states also have the largest number of companies belonging to the black majority. Florida had 21,064 companies of this type in 2022, Georgia had 16,973, Texas had 16,849 and California had 16,826.
Companies belonging to the black majority were the largest share From all classifying companies in the Columbia (16%), Maryland (10%) and Georgia (10%).
Who are black business owners?
- They are more likely to be men than women. About 54% of companies belonging to blacks in 2022 had men as majority owners, while 39% had women as the majority owners. 7% additional had an equal female male property.
- They tend to be of average age. Half of the owners of black or African-American companies who declared that their age group was 35 T0,54 in 2022. 26% additional were 55 to 64, 16% were 65 and over, and only 7 % were under 35.
- A majority has a four -year university degree. Among the owners who declared that their highest level of education had finished, 27% had a baccalaureate and 34% had a graduate or professional diploma beyond a baccalaureate in 2022.
What motivates black entrepreneurs?
ABS has also asked owners of black or African-American majority with nearly a dozen potential reasons for which they have a business.
About nine out of ten of those who responded said that a very or somewhat important reason was the possibility of higher income; A desire to be their own boss; Or want to balance work and family life. Seeing corporate property as the best avenue for their ideas, goods and services (88%) and having flexible hours (87%) were also commonly cited reasons.
For most owners of black or African-American majority, Their business is their main source of income. Among those who declared information on primary income in 2022, 71% said it was.
Note: This is an update of an article originally published on February 21, 2023.