Addressing the Black employer disparity: Perspectives from the most recent Black-owned company data

The surge in public investment to counter the economic fallout of the COVID-19 pandemic in the United States coincided with a burgeoning movement to support Black-owned businesses. This convergence of factors fueled significant growth in the number and performance of Black-owned employer businesses throughout 2021.

According to data from the Census Bureau’s Annual Business Survey, Black-owned employer businesses experienced remarkable expansion, with a 14.3 percent increase in their numbers compared to the previous year. This growth trend was not limited to 2021 but had been ongoing, with consecutive increases noted from 2017 to 2021.

In terms of key metrics such as employment, revenue, and payroll, Black-owned employer businesses outpaced their counterparts in other demographic categories in 2021. They recorded the highest percentage increases in employees (7 percent), revenue (30 percent), and payroll (27 percent) compared to white, Asian American, Latino or Hispanic, and Native American employer businesses.

Despite this notable progress, the overall representation of Black-owned employer businesses remained disproportionately low relative to the demographic share of Black Americans in the population. In 2021, while Black Americans constituted 14.4 percent of the U.S. population, they represented only 2.7 percent of employer businesses, underscoring persistent disparities in entrepreneurship and economic opportunity.

The data highlights both the resilience and potential of Black entrepreneurship, as well as the enduring challenges and barriers that Black-owned businesses continue to face in achieving equitable representation and growth in the American economy.