Black-Owned Businesses Are Still a Small Fraction of the American Economy

A new report from the U.S. Census Bureau examines the status of minority-owned businesses in the United States.

In 2020, there were a total 5,775,258 U.S. firms in all sectors. They employed about 129,363,644 workers and had a total annual payroll of $7.3 trillion. Of these, there were 140,918 U.S. Black- or African American-owned businesses across all sectors of the economy. They had annual sales of $141.1 billion and employed 1.3 million people.

Thus, Black-owned businesses accounted for only 2.4 percent of all firms in the nation with paid employees. They employed just 1 percent of all employees. The total revenue of Black-owned businesses was a tiny percentage of the revenues of all firms.

More than one quarter of Black-owned firms with paid employees were in the healthcare sector.  These businesses employed 468,433 workers and had an annual payroll of $12.2 billion.  There were 2,524 firms with paid employees involved with educational services.

In addition to the 140,918 Black-owned firms with paid employees, the latest data show there were about 3,115,000 businesses owned by African Americans that had no paid employees.

Related Articles

Leave a Reply

Get the JBHE Weekly Bulletin

Receive our weekly email newsletter delivered to your inbox

Latest News

Online Articles That May Be of Interest to JBHE Readers

Each week, JBHE will provide links to online articles that may be of interest to our readers. Here are this week’s selections.

In Memoriam: Roscoe Hightower Jr., 1966-2024

Dr. Hightower was a professor of marketing at his alma mater, historically Black Florida A&M University, where he taught for over two decades. He also served the university as the Centennial Eminent Scholar Chair and Professor of Marketing and Facility Management.

Higher Education Gifts or Grants of Interest to African Americans

Here is this week’s news of grants or gifts to historically Black colleges and universities or for programs of particular interest to African Americans in higher education.

In Memoriam: O. Jerome Green, 1954-2024

President of historically Black Shorter College O. Jerome Green passed way unexpectedly on April 8. Since he became president in 2012, the college has experienced record-breaking enrollment and graduation rates, created new academic programs, and established the STEM Center for Academic Excellence.

Featured Jobs