The Pew Research Center has recently conducted research on the status of Black-owned businesses in the United States.
Through analyzing results from the 2022 Annual Business Survey from the United States Census Bureau and the National Science Foundation, the Pew Research Center found that Black-owned firms make up only 3 percent of American businesses, compared to the 85 percent share of White-owned businesses. Additionally, Black-owned firms recorded just over 1 percent of the gross revenue of the surveyed businesses, compared to White-owned firms, which earned 92 percent of the survey’s gross revenue.
The study found that 28 percent of Black-owned business were in the health care and social assistance sector, making Black-owned companies 7 percent of all businesses in the health care industry. Professional, scientific, and technical services had the next highest share, with 14 percent of Black-owned companies centered in this industry. Additionally, Black-owned companies across all industries tended to be small businesses, with 66 percent consisting of less than 10 employees and 16 percent reporting no employees.
The states with the most numbers of Black-owned businesses were Florida, California, and Georgia. However the areas with the largest share of Black-owned businesses were the District of Columbia with 15 percent, Georgia with 8 percent, and Maryland with 8 percent. Of the Black business owners surveyed, the majority were men, making up 53 percent of respondents. Black business owners were more likely to be middle-aged, with 49 percent in the 35 to 54 age group. Additionally, 61 percent of Black business owners had some kind of post-secondary education, either a bachelor’s, graduate, or professional degree.
When asked why they started their own business, Black business owners cited multiple factors that contributed to their decision. Some of the popular responses included the opportunity to earn more income, be their own boss, create the best outlet for their ideas and services, and balance their personal and professional lifestyles.
