Best Places to Start a Black-Owned Business

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Location can play a key role in the success of starting a business, especially for black entrepreneurs.

According to Census Bureau data, the number of black-owned businesses in the United States has grown more than 8% in the past two years, with more than 2.5 million black business owners across the country.

Although more and more black-owned businesses seem to be thriving across the country, some places have proven more favorable for entrepreneurs who are just getting a foothold.

When looking at the largest metropolitan areas in the United States, key factors that play a role in Black entrepreneurial success include the number of Black-owned businesses in existence, the average annual revenue of Black-owned businesses, blacks in the region, the average income per black household and the overall survival rate of start-ups.

Keep scrolling to discover some of the best places to start a black business based on these factors and more.

Atlanta, Georgia

According nerd walletthe state of Georgia has the third largest black consumer market in the nation, making it an ideal place to generate revenue for a new business.

Specifically in Atlanta, the median black household income ranks higher than most metro areas at $56,245 per year, per smart asset.

According to the website’s study, the city also has one of the lowest black employment rates, at 5.9%.

The Atlanta Metropolitan Black Chamber of Commerce and Atlanta’s Minority Business Development Agency provide resources to help local businesses thrive.

washington d.c.

Entrepreneurship in the nation’s capital is booming, with more than a quarter of the city’s businesses created in the past three years, according to smart asset.

In the website’s study, black household income ranks second among all metro areas at $77,813.

With its nearly 50% black population, DC is considered one of the best places for small businesses to thrive, for Incfile.

Montgomery, Alabama

By nerd walletMontgomery’s black population growth exceeds most other metropolitan areas in the country.

Its low unemployment rate and cost of living make the area a prime location for black entrepreneurs, as nearly a third of its businesses are black-owned.

Resources for small businesses can be found at the Alabama State Black Chamber of Commerce and the Montgomery Chamber of Commerce’s Minority Business Development Advisory Task Force, the Nerd study notes Wallet.

Baton Rouge, Louisiana

In the state of Louisiana, black-owned businesses make up more than 20% of all businesses.

Baton Rouge has a low cost of living index, which means consumers in the city have more money to spend on local businesses, according to nerd wallet.

If you’re looking for a place to start a black-owned business, consider Baton Rouge as your destination.

Memphis, TN

In several studies, Memphis has ranked first for the number of black-owned businesses in the United States.

43% of businesses in the city are black-owned.

With a low cost of living and a rich culture, Memphis could be the perfect place to start your black-owned business.

Houston, TX

According smart assetHouston has one of the highest early survival rates for startups at nearly 80%.

More than 4,000 black-owned businesses can be found in the city and of its existing businesses, 30% of them are considered new, according to the Smart Asset study.

Richmond, Virginia

Considered by many to be the hub of black capitalism, Richmond is one of the best places to find thriving black businesses.

Its 1,700 black-owned businesses account for 7% of all businesses, according to smart asset.

This number is increasing at a rapid rate. According to data from the Census Bureau, the number of Black-owned businesses in Richmond increased by nearly 54% between 2017 and 2019.

The city also has a relatively healthy economy, with an unemployment rate of 5.3%, according to Nerd Wallet.

Durham, North Carolina

Metro Durham is filled with a plethora of shoppers from its Research Triangle Park, which includes Duke University, University of North Carolina at Chapel Hill, and North Carolina State University.

According nerd walletthe city is a booming hub for tech startups, with multiple accelerators, coworking spaces, and entrepreneurial meetups, making it a great place to consider starting your black-owned business.

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