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Black Businesses Are on an Upward Trend
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Of all the minority groups, African-American owned businesses posted the most gains in the early 2000s. Our new infographic explores the gains the black community achieved, as well as some tips on how those who own small businesses can continue the trend of upward growth.
Ownership and Employees
In 2007, when the U.S. Census collected its most current statistics, there were over 1.9 million black-owned businesses in the country. That amount accounts for 7.1% of all the businesses in the United States. Compared to the previous collection of statistics, in 2002, these businesses experienced a 61% increase in number, while the national average increase was a mere 9%.
The 2007 figures also show an increase in the number of black-owned businesses that had one or more employees. While the majority of African-American firms remain one employee enterprises, 106,824 of the businesses that responded to the Census Bureau had one or more additional employees. This represents a 4% increase over 2002.
Another positive update was an increase in the overall number of employees hired by black-owned firms. It’s reported that these companies hired a combined total of 921,000 workers, representing a 22% increase. The national increase was only 0.3%.
The types of African-American owned businesses have crossed every sector, with the majority of firms in the healthcare/social service field. The other two top sectors are repair and maintenance/personal laundry services and administrative and support/waste management and remediation services. These are all fields that are expected to continue to grow in the coming years.
More important than the number of businesses is the money that they represent. And the good news for black-owned ventures is that they have also experienced an increase in receipts. In fact, these increases outpaced the rest of the country; African-American businesses with employees grossed $99 billion in 2007. Those firms without employees earned $39 billion. Combined, that represents a 55% increase over 2002 figures.
Of all businesses, this group experienced the best growth in this five-year period. In the same time period, the national gross receipt increase was just 21%.
New Business Startups
These statistics have made one thing certain: African-American businesses are on the fast track. Entrepreneurs need to stay grounded if they want to succeed and follow these tips.
(Research and Writing by Ashyia; Graphic Design by Boris; Additional Writing by Meghan; Editing by Maria and Sarah)
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