The quantity of Black-owned enterprises in the United States is on the rise: Explore the leading industries.

Approximately six out of every ten Black adults believe that supporting Black-owned businesses is an extremely or highly effective strategy for advancing equality in the United States, according to findings from a survey conducted by the Pew Research Center.

As previously noted by USA TODAY, the ratio of Black-owned businesses to the Black population in the U.S. is disproportionate. While Black Americans constitute roughly 12.4% of the nation’s populace, Black business proprietors represent merely 2.4% of all employer-firm owners. Conversely, white Americans, comprising approximately 59% of the total population, constitute the majority (86%) of employee-firm owners.

According to data from the Census Bureau, the number of Black-owned businesses saw a 14% increase from 2020. As of 2021, 161,031 Black or African-American-owned businesses were operating, collectively generating $183.3 billion in annual revenue. The Health Care and Social Assistance sector harbored the most Black-owned firms, totaling 45,015 businesses and employing around 1.4 million individuals, with an annual payroll expenditure of $53.6 billion.

Following closely, the professional, scientific, and technical services sector emerged as the second largest for Black-owned enterprises. Conversely, the mining, quarrying, oil, and gas extraction sectors exhibited the smallest representation, with a mere 31 businesses.

In terms of ownership demographics, 55% of majority Black-owned businesses were helmed by male proprietors in 2020, while women-owned 37%, and 8% had equal male-female ownership. However, Black woman-owned firms surged to 42% in 2021, totaling 62,953 businesses.

Research conducted by the Brookings Institution underscores the symbiotic relationship between Black-owned businesses and employment opportunities for Black individuals. The institution’s findings suggest that the scarcity of Black businesses not only undermines employment prospects but also impedes the socioeconomic progress of Black communities.

The underrepresentation of Black businesses not only perpetuates racial inequality but also exacts a toll on the U.S. economy, depriving it of millions of jobs and billions of dollars in potential revenue, according to the report’s conclusions.

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