A recent report for the city of Detroit titled “Detroit Future City: 2012 Detroit Strategic Framework Plan” uncovers statistics that exposes the weakness in Black owned businesses that actually reflects the state of Black owned businesses across America. Detroit is 80 percent black, and has 40,000 black-owned businesses. The article states:
“Minorities in Detroit already account for 89% of the city’s population; however, the firms they own account for only 15% of private company revenues. African American-owned businesses account for 94% of the city’s MBEs (minority-owned business enterprises) yet few of these companies grow enough to hire even one employee: Only one in thirty African-American companies in the city has at least one employee compared to one in three white-owned businesses.”
The number of Black owned businesses in Detroit and nationwide has grown, however they lack growth and scale that would effectively develop the economies of their communities. Although they provide jobs for their owners most do not grow enough to hire employees which would create and support more commercial business development. The organization who created the report says they do not have all of the answers to this issue however they believe that concentrating on Black business corridors will help concentrate the businesses and help to increase visibility, support, and revenues.