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.