The 10 Most Supportive States for Black-Owned Businesses

Black business owner
marvent / Shutterstock.com

This story originally appeared on Zippia.com.

With African Americans occupying 13% of the U.S. population, it’s shocking that only 7% of the country’s businesses are Black-owned.

Recent events have led to a nationwide push to support Black-owned businesses, so we wanted to find out which states support a thriving environment for Black-owned businesses.

The first factor we examined was the number of Black-owned businesses per capita, using data from the Census Bureau’s Annual Business Survey. What better way to determine which states have the right environment and support for Black businesses to flourish than the number of Black businesses currently in operation?

After that, we pulled in the number of workers employed by Black businesses to gauge the size and the success of those businesses.

However, businesses don’t grow in a vacuum. We then looked at the percentage of Black residents with a bachelor’s degree or higher from the Census Bureau’s American Community Survey, or ACS. College is great to get the knowledge you need for your business to succeed and meet people who can help you along the way.

Finally, using the ACS data, we examined the percentage of Black workers who work in management and business. A strong business community of color provides valuable experience and mentorship.

Due to too small of a sample size in the business survey, Wyoming, Vermont, Connecticut and Maine were excluded from our rankings.

10. Florida

Tallahassee, Florida
Felix Mizioznikov / Shutterstock.com

Black residents with a bachelor’s degree or higher: 23.1%
Black-owned businesses: 11,932
People employed by Black-owned businesses: 72,280

Florida is more than just sunshine for Black-owned businesses. The state is home to 11,932 Black-owned businesses, which puts it at No. 10 on our list. Florida is within the top five states for employees of Black-owned businesses: The Sunshine State’s Black businesses employ 72,280 workers.

9. North Carolina

Raleigh, North Carolina
Sharkshock / Shutterstock.com

Black residents with a bachelor’s degree or higher: 25.5%
Black-owned businesses: 5,845
People employed by Black-owned businesses: 57,335

One of the sweet Carolinas pops up on our list of best states for Black businesses at No. 9. North Carolina isn’t only the home of arguably the best college basketball rivalry in the country, but is also home to 5,845 Black-owned businesses. That number alone ranks North Carolina No. 7 in the country.

8. Massachusetts

Boston, Massachusetts
Roman Babakin / Shutterstock.com

Black residents with a bachelor’s degree or higher: 30%
Black-owned businesses: 1,893
People employed by Black-owned businesses: 26,509

Black business owners may turn to Massachusetts when it comes to picking a location for their business, and we wouldn’t be surprised. The state has 1,893 Black-owned businesses that employ 26,509 workers. The best part about Massachusetts is that 30% of its Black residents have a bachelor’s degree or higher.

7. New Jersey

Trenton, New Jersey
FotosForTheFuture / Shutterstock.com

Black residents with a bachelor’s degree or higher: 28.2%
Black-owned businesses: 4,028
People employed by Black-owned businesses: 30,043

With 4,028 Black-owned businesses, New Jersey is the seventh-most supportive state on our list. It’s also one of the states with the highest percentages of Black residents with a bachelor’s degree or higher — 28.2%.

6. Texas

Austin, Texas
Roschetzky Photography / Shutterstock.com

Black residents with a bachelor’s degree or higher: 27%
Black-owned businesses: 9,728
People employed by Black-owned businesses: 124,735

Texas is the sixth-most supportive state for Black-owned businesses. Texas Black-owned businesses employ an impressive 124,735 workers — that’s more than any other state. Everything is bigger in Texas, including Black-owned businesses.

4. Virginia (tie)

Richmond, Virginia
ESB Professional / Shutterstock.com

Black residents with a bachelor’s degree or higher: 26.5%
Black-owned businesses: 5,294
People employed by Black-owned businesses: 59,175

Virginia ties with the next state for fourth place on our list of best states for Black-owned businesses. The state alone is home to 5,294 Black-owned businesses that employ 59,175 workers.

4. California (tie)

Sacramento, California
Ed Gavryush / Shutterstock.com

Black residents with a bachelor’s degree or higher: 28.5%
Black-owned businesses: 10,287
People employed by Black-owned businesses: 81,530

California is home to 10,287 Black-owned businesses. After Maryland, the state has the second-highest percentage of Black managers in the country — 36%. Additionally, California has one of the highest numbers of employees at Black-owned businesses, at an astonishing 81,530.

3. New York

Albany, New York
jiawangkun / Shutterstock.com

Black residents with a bachelor’s degree or higher: 27%
Black-owned businesses: 11,395
People employed by Black-owned businesses: 72,486

With 11,395 Black-owned businesses, New York ranks at No. 5 in the country for that statistic alone. Now, add in the fact that those businesses employ 72,486 workers, and that bumps up New York’s ranking to No. 3 in the U.S.

2. Georgia

Atlanta, Georgia
Sean Pavone / Shutterstock.com

Black residents with a bachelor’s degree or higher: 27.9%
Black-owned businesses: 8,929
People employed by Black-owned businesses: 83,781

Georgia is a land of opportunity for Black business owners, as it is home to 8,929 Black-owned businesses. The state comes in second in the country with the 83,781 workers those businesses employ.

1. Maryland

Annapolis, Maryland
Sean Pavone / Shutterstock.com

Black residents with a bachelor’s degree or higher: 33.4%
Black-owned businesses: 6,570
People employed by Black-owned businesses: 64,023

Maryland tops our list of the best states for Black-owned businesses. The state is home to a whopping 6,570 Black-owned businesses, which employ 64,023 workers.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
3 Cable TV Companies Hiking Prices for 2020
3 Cable TV Companies Hiking Prices for 2020

Still married to your cable company? Hold on to your wallet!

11 Secret Uses for Everyday Items That Will Save You Money
11 Secret Uses for Everyday Items That Will Save You Money

These are simple solutions for life’s irritations.

5 Ways to Put an End to Junk Mail
5 Ways to Put an End to Junk Mail

Here’s how to keep unwanted mail from clogging your mailbox and trash can.

Here’s the Average Retirement Age in Your State
Here’s the Average Retirement Age in Your State

Are you on track to retire at the same age as most residents of your state?

5 Home Improvements That Help You ‘Age in Place’
5 Home Improvements That Help You ‘Age in Place’

These safety-conscious home upgrades can help retirees stay in their home.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?
Can a Twice-Divorced Woman Claim Social Security Survivors Benefits?

Understanding survivors benefits rules is the key to getting the most from your benefit.

9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

These Are the 10 Worst Cars for Depreciation
These Are the 10 Worst Cars for Depreciation

Two types of vehicles are especially likely to see steep plunges in value.

Never Buy These 10 Things With Your Credit Card
Never Buy These 10 Things With Your Credit Card

Credit cards offer many conveniences and protections, but sometimes it’s simply smarter to keep the plastic tucked away.

13 Amazon Purchases That We Are Loving Right Now
13 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

5 Ways Social Security Will Change in 2021
5 Ways Social Security Will Change in 2021

These adjustments will affect both workers and retirees in the new year.

11 ‘Disposable’ Items You Should Be Reusing
8 Surprising Household Items You Can Sell for Fast Cash
8 Surprising Household Items You Can Sell for Fast Cash

Sometimes, the humblest household items are worth the most money.

8 Things You Should Buy at Restaurant Supply Stores
8 Things You Should Buy at Restaurant Supply Stores

You don’t have to be a chef or a restaurant owner to shop here.

Stop Buying These 19 Things Online
Stop Buying These 19 Things Online

The internet has changed how we shop. But for some things, you’re still better off buying the old-fashioned way.

10 Things I Always Buy at Trader Joe’s
10 Things I Always Buy at Trader Joe’s

From snacks to sweets to side dishes, stock your cart with these time-tested favorites on your next TJ’s run.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

There are easy high-paying majors available in the U.S. — and no bachelor’s degree is required. We’re here to help you find easy degrees that pay well.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

Cut These 11 Expenses Now If You Hope to Retire Early
Cut These 11 Expenses Now If You Hope to Retire Early

Like the idea of financial independence? Part of the FIRE equation is cutting costs.

7 Tips for Building an Emergency Food Supply
7 Tips for Building an Emergency Food Supply

A pandemic or natural disaster could leave you reliant on your existing emergency food supply. Is your pantry well-prepared for emergencies? Knowing what to stock up on for emergencies can be a difficult task and we’re here to help.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

5 Secrets of Seniors Who Keep Their Minds ‘Young’
5 Secrets of Seniors Who Keep Their Minds ‘Young’

Here is why some seniors’ brains work as well as those of people who are decades younger.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.