Best States for Black-Owned Businesses in 2024

According to the Department of Small and Local Business Development, there are about 3.12 million Black-owned businesses in the U.S., employing 1.18 million people and generating $133.7 billion in total sales.

Black-owned businesses play a vital role by contributing to a healthy economy and impacting their local communities. They create new jobs, help distribute wealth, and increase inclusivity in the business market.

To celebrate National Black Business Month, B2B Reviews compared all 50 states and the District of Columbia across seven key metrics to highlight where Black-owned businesses are thriving.

For a more in-depth look at how we determined our rankings, check out our methodology.

Best States for Black Businesses

Sort this chart to see where your state ranks overall or by category.

Note: Columns show how each state ranked for that category.

Top 10 States for Black-Owned Businesses

Take a closer look at why these states ranked within the top ten of our list. Maryland and Texas tied for third place, earning an equal number of points across all seven key metrics.

1. Delaware

If you’re a Black business owner in Delaware looking for financial aid or networking events, visit the Delaware Black Chamber of Commerce (DEBCC).

2. North Carolina

North Carolina does not have specific year-round financial support. Monthly support is available; however, programs and providers vary. You can visit the Greater NC Black Chamber of Commerce to see what support programs they feature.

3. Maryland

There are no year-round support programs in Maryland. However, Black business owners can find monthly programs (which change each year) to get support and resources. Check out the Maryland Black Chamber of Commerce to see what resources are available.

3. Texas

Visit the Dallas Black Chamber of Commerce to see what financial and support programs are available to you.

5. Mississippi

The Mississippi Gulf Coast Chamber of Commerce’s Free Shine a Light Grant program offers funds for women and BIPOC-owned small businesses. You can also check out the Mississippi Kiva Loan Hub organization, which sometimes offers funding to Black business owners.

6. Georgia

If you’re a Black business owner in Georgia, you can find funding and support at places like Access to Capital for Entrepreneurs Inc., the Village Micro Fund, the Atlanta Business League, the Russell Innovation Center for Entrepreneurs (RICE), and more.

7. Ohio

Ohio does not have specific year-round financial support. There are monthly programs available, but these change each month and year. Black entrepreneurs can visit the African American Chamber of Commerce to find free resources.

8. California

California does not have specific year-round financial support, but during some months, different providers offer varying support programs. Visit the California Black Chamber of Commerce for possible aid.

9. South Carolina

Black business owners in South Carolina can visit the Minority Business Accelerator (Charleston area), the Minority Business Enterprise Advisory, the Minority Economic Development Institute, and more for possible funding and support.

10. Minnesota

Minnesota Black business owners can visit the African Development Center (ADC), the Entrepreneur Fund, the Neighborhood Development Center of Minneapolis, and more for possible funding and support.

Methodology

To determine where Black-owned businesses are thriving, the B2B Reviews research team compared all 50 states and the District of Columbia within five categories across seven key metrics.

The metrics considered factors like the percentage of Black-owned businesses, the percentage of those that were employer businesses, the percentage increase in the number of Black-owned businesses, and the business survival rate of each state. We also considered the Black population and median income as these contribute to local Black-owned businesses and the economy.

States were ranked within these metrics, earning a score based on the weighted value. We then graded them on a 100-point scale, with 100 points representing the states where Black-owned businesses thrive most.

Percentage of Black-Owned Businesses - Total 30 Points

Using the latest data from the SBA, the B2B Reviews team calculated the percentage of Black-owned businesses among all small businesses in each state. States with a higher percentage of Black-owned businesses earned more points.

Percentage of Employer Businesses - Total 10 Points

Using available data from the SBA, we calculated the percentage of Black-owned businesses that had employees. States for which the SBA lacked data received a general score that did not count for or against final rankings. States with a higher percentage of employer businesses scored better.

Percentage Increase of Black-Owned Businesses - Total 20 Points

We collected data on the number of Black-owned businesses in each state for 2022 and 2023, calculated the growth rate, and assigned higher scores to states with larger percentage increases.

Survival Rate - Total 20 Points

• General Business Survival Rate (15 points)
• We looked at the five-year survival rate for all small businesses in each state. States with a higher survival rate earned more points.
• Early Startup Survival Rate (5 points)
• Using data from the Kauffman Foundation, we gathered survival rates for early startups in each state. States with a higher survival rate scored more points.

Percentage of the Black Population - Total 10 Points

States with a larger Black population indicate stronger communities and therefore impact Black-owned businesses. We calculated the percentage of the Black population in each state, and states with larger Black population percentages scored higher.

Median Income of Black Households - Total 10 Points

The B2B Reviews research team calculated the percentage of Black households' median income compared to the state’s median income (years 2015-2019, the most recent and complete data). States where Black households had a higher percentage median income scored higher.

The Bottom Line

National Black Business Month, celebrated each August, honors the contributions of Black-owned businesses in the United States. Started nearly two decades ago, this observance highlights the pivotal role these enterprises play in our economy.

Representing about 10% of all U.S. businesses, Black-owned employer companies generate $133.7 billion in total sales and employ more than 1.18 million people across diverse sectors—from healthcare and consulting to restaurants and beauty services.

Despite their vital role, Black entrepreneurs often face unique challenges. To foster an inclusive economic environment, it's important that both community members and state leaders actively support these businesses.

This National Black Business Month, we encourage consumers and businesses alike to support Black-owned businesses. Below are some helpful ideas:

• Feature Black-Owned Products: Showcase Black-owned brands in your stores, restaurants, and other platforms.
• Source from Black-Owned Vendors: Buy supplies and services from Black-owned businesses to help build sustainable community support and economic growth.
• Encourage Reviews: Promote Black-owned businesses by encouraging customers to leave positive reviews and ratings online.
• Use Your Platform: Actively promote any partnerships with Black businesses on social media and other online platforms.
• Make a Commitment: Commit to enhancing your network by meeting and working with Black business owners.

By actively supporting Black-owned businesses, not only during August but year-round, you can contribute to a stronger, more diverse economy and further the vital role these businesses play in our communities.

Fair Use Statement

Feel free to share our findings for non-commercial purporses, but please provide a link back to this report so readers can access our methodology.

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