Black-owned businesses see growth and expansion

The number of Black-owned employer businesses in the United States surpassed 200,000 in 2023, marking at least six years of consecutive growth. This growth, totaling nearly 77,000 firms between 2017 and 2023, outpaced the overall growth of U.S. employer businesses.

Despite this progress, the share of Black-owned employer businesses remains disproportionately low relative to the Black population. In 2023, Black Americans represented 3.4% of employer business owners, while comprising 14.4% of the U.S. population.

### Black-owned businesses continued to grow the US economy

Between 2022 and 2023, the number of Black-owned employer businesses increased by an estimated 6,300 firms. In 2023, these firms created roughly 238,000 new jobs, generated $249 billion in revenue, and paid out $69.8 billion in salaries. While positive, this annual growth rate slowed compared to previous years. From 2017 to 2022, the number of Black-owned employer businesses grew significantly, with a nearly 21% increase from 2021 to 2022. The growth rate declined sharply to 3.2% from 2022 to 2023.

### Black female-identifying employers surged, yet remained a small share overall

In 2017, there were fewer than 45,000 Black female-owned employer businesses. By 2023, this number had risen to 79,000, increasing their share of all employer businesses from 0.8% to 1.3%. The number of Black female-identifying employers grew by 78% from 2017 to 2023, compared to 62% for Black employers overall and 60% for Black male-identifying employers. Black women start businesses at relatively high rates, but still face barriers such as business loan rejection rates triple that of white business owners.

### Black employers are concentrated in a small set of industries

Half of all Black-owned employer businesses are concentrated in five industries: health care and social assistance, professional, scientific, and technical services, social assistance, administrative and support services, and waste management and remediation services. Black workers, particularly Black women, are overrepresented in health care and social assistance jobs. However, Black people are still underrepresented in the ownership of these businesses, especially in higher-earning and leadership roles. Industries with the lowest share of Black employers include machinery manufacturing, mining support, fabricated metal manufacturing, textile products, and textile mills.

### Despite large gains from 2017 to 2023, the growth of Black-owned employer firms varied by metro area

From 2017 to 2023, 116 metro areas saw an increase in the number of Black-owned employer businesses. Atlanta led the nation with a gain of 6,000 firms. However, only 72 of these metro areas saw growth in the most recent year (2022-2023). Houston saw the largest increase in Black-owned employer businesses from 2022 to 2023, gaining 902 firms. Smaller metro areas, like Flint, Michigan, experienced significant growth percentages.

### Employer business ownership increased across race and ethnicity, but minorities are still underrepresented

Latino or Hispanic business owners saw the largest percentage increase in the number of businesses and employees, with a 125% increase from 2017 to 2023. Black employers saw the second-largest proportional increase, with a 62% increase. White employers continue to own the largest number of businesses (4.8 million), followed by Asian American employers (nearly 685,000). Black Americans own 201,000 employer businesses, representing 3.4% of the total, while comprising 14.4% of the population.

Supporting Black business owners supports the entire economy. Despite historic gains, recent policy changes threaten continued progress. Building an American economy for all requires inclusive and intentional policy and investments to address structural barriers to growth and ensure equitable representation.