Empowering Excellence: Building Ecosystems for Black Entrepreneurs
Accion Opportunity Fund
First published September 2023
Black entrepreneurs have persevered through unprecedented challenges to lead a small business revival, but they continue to face barriers that impact their ability to pursue and accomplish long-term growth and business sustainability. Understanding the Black small businesses landscape is critical for policymakers, small business advocates, philanthropists, and service providers to make strategic decisions and investments that will strengthen these businesses and the communities in which they work.
According to the latest US Census data, there are more than 3 million Black-owned businesses in the country; 66% of these have fewer than ten employees, and 17% have no employees other than the owner. Despite making up just 3% of small businesses nationwide, Black-owned enterprises provide critical services to their communities, and they contribute substantially to both local and national economies through hundreds of billions of dollars in wages, spending, and tax revenue. However, historical and structural inequities have created significant obstacles to success for Black entrepreneurs, limiting their ability to start, grow, and scale their small businesses. This research study, with a specific focus on the experiences of established Black-owned small businesses, reveals new findings about the nuances of their successes and challenges, and lays out specific tools needed to build a truly supportive ecosystem for Black entrepreneurs.