Black Owned Businesses
Black owned businesses in the United States increased 60.5% between 2002 and 2007 totaling of 1.9 million Black firms. More than 94% of these businesses are made up of sole proprietorships or partnerships which have no paid employees. Nearly 4 in 10 black-owned businesses (more than 700,000) in 2007 operated in the health care, social assistance; and other services such as repair, maintenance, personal and laundry services sectors.
Administrative Support, waste management, and remediation services made up 11% of Black owned firms totaling 216,763. Transportation and warehousing was the fourth largest industry making up 9% of Black firms.
Black Share of U.S. Businesses
Despite the 60.5% increase of firms, 55% increase of receipts, and 13% increase of businesses with paid employees, Black owned businesses only make up 7% of all U.S firms and less than a half percent of all U.S business receipts. African American Adults (ages 10 and up) make up 10% of the adult population and are therefore underrepresented in the U.S. in terms of business ownership especially when it comes to earnings.
Of the 1.9 million black-owned businesses in 2007, 106,824 had paid employees, an increase of 13.0 percent from 2002. These businesses employed 921,032 people, an increase of 22.2 percent; their payrolls totaled $23.9 billion, an increase of 36.3 percent.
Receipts from black-owned employer businesses totaled $98.9 billion, an increase of 50.2 percent from 2002. In 2007, 1.8 million black-owned businesses had no paid employees, an increase of 64.5 percent from 2002. These non-employer businesses’ receipts totaled $38.6 billion, an increase of 69.0 percent.
Receipts generated by Black-owned businesses during the same time period increased 55.1% to $137.5 billion. The number of black-owned businesses with receipts of $1 million or more increased by 35.4 percent to 14,507 between 2002 and 2007. The top earning industries in Black owned businesses are in Information, Transportation & Warehousing, and the Wholesale Trade sectors totaling more than $50 billion in receipts.
Black-owned businesses accounted for 28.2 percent of businesses in the District of Columbia, which led the nation, followed by Georgia, where 20.4 percent of businesses were black-owned, and Maryland, where 19.3 percent of businesses were black-owned.
Among states, New York State had the largest total number with 204,032 black-owned businesses and accounted for 10.6 percent of the nation’s black-owned businesses, followed by Georgia, with 183,874 black-owned businesses (9.6 percent) and Florida, with 181,437 (9.4 percent). “
Among counties, Cook, Ill. (Chicago), had the most black-owned businesses, with 83,733, accounting for 4.4 percent of all the nation’s black-owned businesses. Los Angeles followed with 59,680 (3.1 percent) and Kings, N.Y. (Brooklyn), with 52,705 businesses (2.7 percent).
Among cities, New York City had the most black-owned businesses, with 154,929 (8.1 percent of all the nation’s black-owned businesses), followed by Chicago, with 58,631 (3.1 percent), Houston, with 33,062 (1.7 percent) and Detroit, with 32,490 (1.7 percent).
SOURCE: US Census 2007 Survey of Business Owners (SBO)