About 60% of Black adults believe supporting Black businesses is an extremely or very effective strategy for advancing equality in the U.S., according to a survey by the Pew Research Center. Despite growing numbers, Black business owners represent only 2.4% of all employer-firm owners, while Black Americans make up about 12.4% of the population, in contrast to white Americans, who make up 86% of employer-firm owners and 59% of the total population. In 2022, it was estimated that there were 161,031 Black-owned businesses in operation, with a total of $183.3 billion in annual receipts. The number of Black-owned businesses has increased since 2020, when there were an estimated 140,918 in operation. These businesses employed 1.4 million people, with an annual payroll of about $53.6 billion. Despite the majority of Black-owned businesses having small payrolls (66% had fewer than 10 employees in 2020), some generate billion-dollar revenues annually and employ thousands of workers.
The top 10 largest Black-owned businesses in the U.S. include World Wide Technology, which is headed by David Steward. The company employs approximately 10,000 people globally and generated $17 billion in revenue last year, making it the largest Black-owned business in the U.S. Thompson Hospitality Corp. and Coca-Cola Beverages Florida are also on the list, employing 6,000 and 5,000 people respectively.
World Wide Technology leads in annual revenue, bringing in $17 billion in 2023, followed by Bridge Water Interiors with $2 billion and ActOne with $1.1 billion in 2022 revenue.
Research from the Brookings Institution shows that Black businesses are more likely to hire Black workers, and at the same time, Black adults are more likely to be unemployed. The report indicates that a lack of Black businesses weakens job opportunities and the development of Black communities, resulting in reduced employment and increased racial inequality. The underrepresentation of Black businesses not only impacts Black communities, but also costs the U.S. economy millions of jobs and billions of dollars in unrealized revenues.
