By James Wright Jr.
The District’s Department of Small and Local Business Development recognizes August as National Black Business Month.
On its website, the department mentioned the August distinction and said, “supporting Black-owned businesses is more important than ever.”
“Did you know that Black business ownership is up by almost 30% on pre-pandemic levels, with Black women starting businesses at a higher rate than any other group?” the site said.
The site quoted University of California Santa Cruz economist Robert W. Fairlie saying the number of Black small business owners was higher in the third quarter of 2021 than in pre-pandemic. Nationally, as of the latest census data release, there were 3.12 million Black-owned businesses in the U.S., generating $206 billion in annual revenue and supporting 3.56 million U.S. jobs.
The site said women represent 35% of Black-owned businesses, compared to just 27% of female business owners of other racial identities, according to ProjectDiane. New York had the highest number of Black businesses, according to ProjectDiane, however the District had the highest percentage of Black-owned businesses (28%) of Black-owned businesses in the country.
Nevertheless, despite the increasing numbers of Black-owned businesses, just 1% of African American business owners got business loans in their first year, forcing 44% of Black entrepreneurs to use their cash to start their venture; compared to only 37% of all small business owners operating their startups, the study said.
The site encouraged readers to tag their favorite District Black-owned business on the department’s social media platforms @smallbizdc. Readers are encouraged to support Black businesses by going to #BuyBlack all month long.
This post first appreared on The Washington Informer.