University of Texas Study Examines the State of Black Business in the Lone Star State

A new report from the Bureau of Business Research at the University of Texas at Austin finds that the number of Black-owned businesses in Texas is growing. However, many Black entrepreneurs perceive significant barriers before them that restrict the growth and profitability of their enterprises.

The report finds that between 2002 and 2007, the number of Black-owned businesses in Texas grew by 74 percent. Overall the number of businesses in Texas increased by 25 percent during the period. But Black-owned businesses in Texas tended to be very small and 95 percent of them had no paid employees. In 2007, the average Black-owned business in Texas had sales of $60,000 compared to average sales of $1.2 million for all businesses in the state.

More than three-quarters of Black business owners said they lacked access to government decision makers who are responsible for procurement opportunities. And more than 60 percent of Black business owners said they were unfairly excluded from government and private sector procurement processes.

“The survey showed a strong need among black business owners for more financial training and increased access to working capital,” said report co-author Bruce Kellison of the Bureau of Business Research. As a state, we must work together to address their needs for financial training, better access to capital, and increased contracting opportunities, all of which appear to be constraining this growing and vital part of our economy.”

The Survey of Texas Black-Owned Businesses may be downloaded by clicking here.

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