Feb 27, 2025 Story by: Editor
The rise in entrepreneurship following the initial setbacks of the COVID-19 pandemic has led to a surge in new business applications. Data from the Census Bureau shows that business applications remained stable from 2017 to 2019, but between April and July 2020, they more than doubled from 235,695 to 546,415. This upward trend continued through 2022, with 423,977 applications filed in December of that year.
A significant portion of this growth was driven by Black-owned employer businesses, which are firms with at least one employee. Between 2017 and 2022, the number of these businesses increased by 56.9%. Out of the 132,000 new employer businesses established during this period, at least 70,000—more than half—were Black-owned.
This expansion has contributed to a more diverse and competitive economy. In 2022, Black-owned businesses generated $212 million in revenue, employed an average of eight people per firm, and paid over $61 million in total salaries. Other minority-owned businesses also played a key role in economic growth, with their numbers rising by over 334,000 between 2017 and 2022. This increase added $738 billion to the economy and created 1.9 million additional jobs in 2022 compared to 2017.
As part of the Path to 15|55 initiative, this report delves into the trends fueling a thriving and diverse economy. Drawing from Census Bureau data, it examines key industries and metropolitan areas driving this growth while also addressing racial disparities in business ownership.
Key findings include:
- The share of Black-owned employer businesses rose from 2.2% in 2017 to 3.3% in 2022, yet this remains significantly lower than Black Americans’ 14.4% share of the U.S. population.
- Black women entrepreneurs have seen remarkable growth, with Black female-owned businesses increasing by 71.6% since 2017.
- The number of Black-owned firms in transportation, warehousing, real estate, rental, and leasing sectors doubled.
- Health care and social services continue to be the leading industry for Black-owned businesses, with ownership rising from 6% in 2017 to 7.5% in 2022.
- The South and East regions have witnessed substantial growth in Black-owned businesses, with metro areas such as Reno, NV; Minneapolis-Saint Paul-Bloomington, MN-WI; and Austin-Round Rock-San Marcos, TX, experiencing a doubling in Black-owned businesses between 2017 and 2022.
These findings highlight the continued progress and opportunities for Black entrepreneurs while emphasizing the need for further expansion to achieve equitable representation in the business landscape. Source: Brookings
