The last few years have been incredibly important for Black business owners. Between 2019 and 2023, the number of Black-owned employer businesses in the United States increased from 134,567 to 200,900.
According to census data, Black-owned businesses employ more than 2 million people and provide nearly $70 billion in annual payroll. When combined with non-employer businesses, Black-owned companies contribute more than $378 billion to the nation’s economy.
To celebrate and support Black-owned businesses, August has been designated as National Black Business Month. This is a time to acknowledge and appreciate Black-owned businesses across the nation and what they represent in the country’s continual pursuit of diversity and equality.
Black business owner statistics
Here are some statistics concerning Black-owned businesses:
- There are more than 4 million Black-owned nonemployer businesses (i.e., businesses with no paid employees) in the United States.
- Nearly 79,000 Black-owned businesses are owned by women.
- Twenty percent of Black entrepreneurs say that owning their own businesses is an important part of achieving their definition of financial success.
- In 2024, 39% of Black entrepreneurs had their application for a loan, line of credit, or merchant cash advance denied, the highest percentage of any group.
Ways to support Black-owned businesses
Nearly 60% of Black adults say supporting Black businesses, or “buying Black,” is an extremely or very effective strategy for moving Black people toward equality in the United States.
Here are some ways to support Black-owned businesses year-round, in addition to buying products and services.
Donate to supportive organizations
If you wish to donate to the cause, check out the following resources:
- ACLU: American Civil Liberties Union
- Campaign Zero
- NAACP Legal Defense Fund
- The Marshall Project
- Fair Fight
- Equal Justice Initiative
- Center for Constitutional Rights
Social media support
Helping to elevate a Black-owned business on social media lets your followers know about the products and services they offer. Be sure to highlight exceptional customer service, of growing importance to consumers. The following hashtags may help those searching for Black businesses to support:
- #BuyBlack
- #BlackOwnedBusinesses
- #BOB
And try #BlackFoodFridays to discover Black-owned restaurants all over the country.
When you shop at a Black-owned business, check in online and share your experience. Be sure to tag the company so they are aware of your support and may promote on their own channels and engage further with the brand by commenting on content.
Write positive reviews
Reviews may make or break a small business. When you’ve purchased a product or service from a Black-owned business, write a positive review. Yelp® and Google®Reviews are just a few platforms where consumers may give shopping experience input. Consider writing a detailed paragraph or a few sentences that will appeal to the business’s target audience. Include photos or images for extra impact.
Become a resource
When you’ve had an excellent experience with a Black-owned business, become a resource for other shoppers. Contact the owner and let them know that you’d be willing to be quoted on their website or social media channels. If they are being featured in a media story, consider offering to participate in an interview.
Offer personal recommendations
Just how important are personal recommendations? They are one of the top drivers of consumer purchases across multiple product categories. Word-of-mouth is of vital importance to every small business owner. Let your friends, family, neighbors, and others you come in contact with know about the Black-owned businesses you’re supporting.
Black business locator
To find Black businesses to support throughout the year, check out BuyBlack.org’s registry of Black-owned businesses. You may find additional Black-owned businesses, including online companies here or by visiting Yelp® and using the Black-owned attribute filter.
How to support Black-owned businesses as a business owner
If you already own your own business, there are several ways to use your platform to support Black-owned businesses. Consider setting up B2B deals with Black-owned companies. These deals benefit both companies but are especially important for businesses that may face unique struggles. You may also collaborate with related companies to offer cross-company deals.
SmartBiz supports Black-owned businesses
SmartBiz Bank® is proud to work with Black-owned businesses in multiple industries.
Luv Fats Ice Cream® in Austin is one of those businesses. Founded by Chi Ndika, a successful minority business owner, Luv Fats creates small-batch homemade ice cream with flavors inspired by her Kenyan and Nigerian roots. She funded the business herself for the first six months and was able to launch with a small loan from a friend. But to grow, she needed more. Read more of her story here.
SmartBiz Bank® offers loans to Black-owned businesses. Find out more about our SBA loan options today.
FAQs
Why is it important to support Black-owned businesses?
Supporting Black-owned businesses helps entrepreneurs build wealth, create jobs, and strengthen the communities where they operate. Census data reveals that Black-owned employer businesses generated $249 billion in receipts and employed about 1.9 million people in 2023. There were also 4.4 million Black-owned nonemployer businesses generating another $128.7 billion in receipts.
How can I support Black-owned businesses?
When you're looking for a particular product or service, consider Black-owned businesses alongside other local or independent options. The goal isn't to make every purchase based on ownership but to actively include Black-owned businesses in the businesses you consider and support.
How can I find Black-owned businesses in my area?
Start with local business directories, chambers of commerce, and community organizations that identify Black-owned businesses. You may also search online for Black-owned businesses in your city or use social media to find local entrepreneurs.
How can I support Black-owned businesses without spending money?
There are plenty of ways to help without making a purchase. Share a business's social media posts, recommend the business to someone who needs its services, write a positive review, or refer potential customers. You may also attend free community events hosted by Black-owned businesses or organizations and help spread the word about them.
Should I support Black-owned businesses year-round?
Yes. Supporting Black-owned businesses year-round provides a more meaningful benefit than concentrating purchases around Black History Month or other designated occasions. That doesn't mean every consumer needs to change every purchasing decision. Instead, consider making Black-owned businesses part of your regular mix of local and independent businesses.
