Black-Owned Businesses Highlighted During National Month

August is designated as National Black Business Month, a time to recognize the unique challenges and contributions of Black-owned businesses in the United States. The history of these businesses reflects a persistent drive for success.

Recent data indicates continued expansion within the Black business community.

Growth in Black-Owned Businesses

The U.S. Census Bureau’s Annual Business Survey estimates 194,585 majority Black-owned companies in the United States. This represents a significant increase from 2017. Annual receipts rose to $211 billion, employment reached 1.6 million workers, and annual payroll increased to $61 billion.

Industry Distribution

The healthcare and social assistance sector continues to have the highest number and share of Black-owned businesses, with approximately 50,000 companies representing 26% of the total. Other prominent industries include professional, scientific, and technical services (14%), transportation and warehousing (9%), and administrative, support, and waste management services (8%). Retail trade and accommodation and food services each account for 7% of Black-owned businesses.

Geographic Distribution

Approximately 90% of Black or African American majority-owned businesses are located in urban areas. Florida leads in the number of Black-owned businesses, with 21,064, followed by Georgia (16,973), Texas (16,849), and California (16,826).

Disproportionate Representation

Despite the positive trends, Black-owned businesses remain underrepresented in the U.S. economy. The share of Black-owned employer businesses (those with at least one employee) is 3%, while the Black population represents approximately 14% of the U.S. population.

Resources and Support

TriNet is working to increase access to grants, programs, and other resources for Historically Underutilized Businesses through its website. Entrepreneurs and small business leaders are encouraged to explore these resources and connect with relevant programs to prepare for future challenges.