The State of Black-Owned Businesses and What Still Needs to Change
Black business owners continue to shape the country’s economic landscape, yet the support systems around them remain uneven. February brings attention, events, and acknowledgments. But the conditions minority entrepreneurs face, including limited access to capital, uneven market opportunities, and policy shifts that affect business-support programs, continue long after the month ends. The real work is not seasonal. It is structural, and it continues beyond February.
New research and recent legal developments indicate the extent of progress and the unfinished work.
A Growing Sector Still Held Back by Old Barriers
Black-owned businesses in the United States have grown steadily over the past decade, and the trend accelerated after 2020. Pew Research Center found that the number of Black-owned employer firms rose by 53% between 2017 and 2022, outpacing the growth rate of White-owned firms over the same period.
Spectrum News reports a similar rise, noting a national increase in new Black-owned businesses.
This growth reflects resilience, innovation, and a shifting entrepreneurial landscape. But the numbers tell only part of the story.
Pew found that Black-owned businesses are still far more likely to operate with fewer employees and report lower revenues compared with non-Black-owned firms. Capital access remains a central challenge. Many Black founders begin with limited generational wealth, thinner credit histories, and fewer established networks — all of which influence investor and lender decisions.
The gap is not a reflection of talent. It is a reflection of infrastructure.
The DEI Landscape Is Shifting — and Not in Favor of Small Firms
While entrepreneurship among Black Americans grows, the broader support environment is tightening. DEI programs, once a reliable entry point into procurement, funding, and talent opportunities, are facing new legal pressure.
A recent analysis by Gibson Dunn shows that federal courts and state-level actions are narrowing or striking down several DEI-related initiatives, including procurement preferences, fellowship structures, leadership programs, and contracting criteria.
Companies are beginning to scale back or redesign DEI efforts to avoid legal exposure. Some are pausing programs entirely. Others are rewriting eligibility criteria, which may unintentionally dilute support for historically underrepresented founders.
This creates a dangerous paradox.
The country is producing more Black entrepreneurs, but the external systems built to help them may weaken at the moment they are most needed.
The message: growth alone does not equal equity.
Capital, Representation, and Market Access Remain Uneven
Despite the rise in Black-owned firms, investment and contracting remain deeply unequal. Black founders continue to receive a small fraction of venture capital funding. Bank lending patterns show persistent disparities in approval rates and interest terms.
Even in public-sector procurement, representation does not match population or business formation rates. The tightening of DEI programs risks widening these gaps.
Meanwhile, customers and markets show strong interest in supporting Black-owned brands. But visibility is inconsistent. Many Black-owned firms operate with limited marketing budgets, digital resources, or exposure in supply chains. The result is predictable. Growth happens, but scaling is difficult.
The Work Cannot Happen Only in February
Celebrating February as Black History Month is meaningful, but it does not change balance sheets, strengthen systems, or unlock new markets on its own. Black businesses need year-round support tied to:
stronger capital pathways
accessible technical assistance
modern digital tools
improved procurement access
community ecosystems that reduce isolation
The data makes this clear. Representation improves when infrastructure improves. Equity grows when systems change, not when attention spikes once a year.
Creating a stronger environment for Black-owned businesses is not symbolic work. It is economic development. Cities grow when diverse founders succeed. Regions innovate when more people are at the table. Communities stabilize when small businesses thrive. This is not about politics. It is about removing practical barriers that limit how far Black-owned businesses can grow.
A Path Forward That Centers Long-Term Support
Legal shifts have forced many support systems to change shape, but the underlying need has not disappeared. Businesses still face unequal access to resources, financing, and networks. The challenge now is to design models that are lawful, effective, and grounded in the realities entrepreneurs face every day. The most effective models include:
capacity-building instead of one-time grants
technical assistance instead of short-term workshops
procurement readiness instead of simple certification
talent development instead of diversity statements
digital modernization instead of marketing campaigns
Black entrepreneurs do not need more February promises. They need operational strength, financial clarity, market access, and long-term stability.
The data shows rising entrepreneurship. The legal landscape shows rising pressure. The question for cities, corporations, nonprofits, and local ecosystems is whether we treat support as a moment or a mandate. Black-owned businesses are not seasonal. Their growth should not be either.
Year-Round Support for minority Entrepreneurs
Emerge and Rise provides consulting and technical assistance designed to strengthen small businesses year-round. If your business needs help with digital operations, market readiness, strategic planning, or funding pathways, we offer hands-on, practical support for all founders and all underserved entrepreneurs building strong, sustainable companies. Contact us.
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