There are thousands of small, diverse businesses that people run from all walks of life, including Black-owned businesses. We honor these businesses across the nation, not only during Black Business Month but throughout the year.
Around 10% of enterprises in the United States and 30% of all minority-owned firms are owned by people who identify as black. The U.S. Census Bureau estimates about two million African American-owned businesses nationwide. Health care and social support, repair and maintenance, and personal and laundry services account for over 40% of black-owned enterprises. Restaurants, barbershops, beauty parlors, auto dealerships, consultancy services, and more are among the other categories.
Most black-owned firms in the United States are concentrated in New York, followed by Atlanta. Washington, DC, has the largest percentage at 28% of all establishments. Black-owned franchise firms have also expanded rapidly, increasing from 20% in 2007 to over 30% in 2012.
A Brief History of Black Businesses
Black-owned businesses have a long and storied history in the United States. Throughout the country’s history, black businesses have been significant contributors to the economy and have played a vital role in creating jobs for minorities. August is designated Black Business Month to commemorate these contributions and celebrate the resilience and success of black businesses.
In America, slavery was institutionally ended in 1865 but economic segregation continued in many areas of life. African Americans could not own property, could not legally work in certain fields, and were frequently denied access to credit and other essential services. Despite these challenges, African Americans began to establish their own businesses early on. During the Reconstruction era following the Civil War, African Americans sought to rebuild their communities and create jobs for themselves. They opened stores, restaurants, beauty salons, and other small businesses.
The late 19th century was a time of great change for African Americans. The Civil Rights Movement raised awareness and demanded that everyone be treated equally regardless of race. This led to an increase in opportunities for African American entrepreneurs.
What is a Black-owned business?
Black-owned businesses are businesses that are owned and operated by African Americans. They are essential not just because they generate wealth and opportunity but also because they reflect the diversity of American culture and provide a lens through which to view racial dialogue, business challenges, and innovative solutions.
How to Support Black Businesses
Black businesses have been an essential part of our society for centuries and continue to play a significant role in the economy today. Black Business Month is a significant opportunity to celebrate their contributions and learn more about their unique challenges and opportunities. Here are some tips for celebrating:
- Start with a goal
What do you want to accomplish? The more specific you can be, the better. Placing your focus on what you want to achieve will help you stay focused and motivated throughout the month.
- Network with other black business owners
Networking is one of the most effective ways to learn about new opportunities and connect with key players in your industry. Make sure to attend events and trade shows to learn about business trends, participate in community service projects and speak with local officials.
- Support other black business owners
African American-run enterprises deserve your support and encouragement. Find out more about the African American community’s commercial potential. Use the hashtag #NationalBlackBusinessMonth when communicating online.