According to Census Bureau data, the number of Black-owned businesses in the U.S. has increased by more than 8 percent over the past two years, with over 2.5 million Black business owners across the country.
Though more and more Black-owned businesses seem to be thriving across the nation, certain locations have proved more favorable for entrepreneurs just getting their footing.
When looking at the largest metro areas in the U.S., key factors that play a role in Black entrepreneurial success include the number of existing Black-owned businesses, the average revenue per year for Black-owned businesses in the area, the average income per Black household, and the overall survival rate of start-ups.
Keep scrolling to find out some of the best places to start a Black business based on these factors and more.
Atlanta, Georgia
According to Nerd Wallet, the state of Georgia has the third-largest Black consumer market in the nation, making it a great place to rack in revenue for a new business.
Specifically in Atlanta, the median Black household income ranks higher than most metro areas at $56,245 annually, per Smart Asset.
According to the website’s study, the city also has one of the lowest Black employment rates at 5.9 percent.
The Atlanta Metropolitan Black Chamber of Commerce and Atlanta’s Minority Business Development Agency provide resources to help local businesses thrive.
Washington, D.C.
Entrepreneurship in the nation’s capital is booming, with more than a quarter of the city’s businesses forming just over the past three years, according to Smart Asset.
In the website’s study, Black household income ranked second-highest of all metro areas at $77,813.
With its Black population nearly at 50 percent, D.C. is considered one of the best places for small businesses to thrive, per Incfile.
Montgomery, Alabama
Per Nerd Wallet, the growth of Montgomery’s Black population is outpacing most other metro areas across the country.
Its low unemployment rate and cost of living make the area a prime location for Black entrepreneurs, as nearly a third of its businesses are Black-owned.
Resources for small businesses can be found at the Alabama State Black Chamber of Commerce and the Montgomery Chamber of Commerce’s Minority Business Development Advisory Task Force, the Nerd Wallet’s study notes.
Baton Rouge, Louisiana
In the state of Louisiana, Black-owned businesses make up over 20 percent of all businesses.
Baton Rouge has a low cost of living index meaning consumers in the city have more funds to spend at local businesses, according to Nerd Wallet.
If you’re searching for a place to start a Black-owned business, consider Baton Rouge as your destination.
Memphis, Tennessee
Across multiple studies, Memphis ranked the highest for the number of Black-owned businesses in the U.S.
43 percent of the city’s businesses are Black-owned.
With a low cost of living and rich culture, Memphis could be the place for you to start your Black-owned business.
Houston, Texas
According to Smart Asset, Houston holds one of the highest early survival rates for start-ups at nearly 80 percent.
One can find over 4,000 Black-owned businesses in the city and out of its existing businesses, 30 percent of those are considered new, per Smart Asset’s study.
Richmond, Virginia
Deemed by many as the hub of Black capitalism, Richmond is one of the best places to find thriving Black businesses.
Its 1,700 Black-owned businesses make up 7 percent of all businesses, according to Smart Asset.
That number is growing at a rapid rate. According to Census Bureau data, the number of Black-owned businesses in Richmond increased by nearly 54 percent from 2017 to 2019.
The city also holds a comparatively healthy economy, with the unemployment rate sitting at 5.3 percent, per Nerd Wallet.
Durham, North Carolina
The Durham metro area is filled with a plethora of consumers from its Research Triangle Park, which includes Duke University, the University of North Carolina at Chapel Hill, and North Carolina State University.
According to Nerd Wallet, the city is an up-and-coming hub for technology startups, with several accelerators, co-working spaces, and entrepreneurial meetups, making it a great place to consider starting your Black-owned business.
Get the latest news 24/7 on The Black Information Network. Listen now on the iHeartRadio app or click HERE to tune in live.
About Post Author
