According to the latest stats, black businesses are booming. The number of American businesses in general have increased by 18 percent, and black-owned firms have expanded by 60.5 percent to 1.9 million between 2002 to 2007, more than triple the national rate according to U.S. Census data, reports the Examiner.
According to the government definition, a black-owned business is a firm with African-American owners holding a 51 percent or greater stake in the business. All of the black businesses in the U.S. accrued $137 billion in sales and receipts, and comprised 7.1 percent of businesses nationwide in 2007, compared to only 5.2 percent in 2002. Most black businesses are small. According to National Urban League president, Marc Morial, and data from Survey of Business Owners: Black-Owned Businesses, 87 percent of all black-owned firms earn less than $50,000 a year in receipts.
Certain industries are heavily saturated with black owners, such as health care and social assistance (19 percent of black-owned businesses), repair and maintenance, and personal and laundry services (another 19 percent of black-owned businesses), and administrative and support, waste management, and remediation service industries, which comprise 11 percent of black-owned businesses, according to Examiner.
And there are various cities and states where black business thrive.
As of 2007, the four cities with the most black-owned businesses are: New York City (154,929); Chicago (58,631); Houston (33,062); and Detroit (32,490).
Detroit has the highest percentage of African-American-owned businesses within the city’s limits at 64 percent.
The three states with the most black-owned businesses, as of 2007, are: New York (204,032); Georgia (183,874); and Florida (181,437),