• Insights

Every August, we observe National Black Business Month—a time to celebrate the innovation, resilience, and impact of Black-owned businesses across the country. This observance not only honors the contributions of Black entrepreneurs but also serves as a call to action: to support, invest in, and advocate for equitable opportunities in business ownership and economic empowerment.

The Legacy and the Landscape

Black entrepreneurship is deeply rooted in American history, dating back to a time when access to capital, education, and basic civil rights were denied to many. Despite these barriers, Black business owners forged paths of opportunity—opening banks, grocery stores, newspapers, salons, law practices, and more. These enterprises were not only vehicles of economic self-sufficiency but also anchors of community strength and pride.

Today, there are more than 3.2 million Black-owned businesses in the U.S., contributing an estimated $206 billion to the economy each year. These businesses span industries from tech and finance to retail, health care, and professional services. Many are leading innovation and job creation in their communities—and doing so in the face of disproportionate challenges.

The Roadblocks That Remain

While the progress is undeniable, so too are the systemic hurdles. Black-owned businesses are less likely to receive bank loans or venture capital funding. They often face higher interest rates and fewer networking opportunities. The COVID-19 pandemic further underscored these inequities—many Black-owned businesses were among the hardest hit, with slower recoveries due to limited access to government relief programs.

According to a 2022 report from the Federal Reserve, only 43% of Black business owners who applied for financing received all or most of what they requested, compared to 68% of white business owners. These disparities are not just numbers—they reflect real limitations on growth, innovation, and generational wealth.

Building a Better Ecosystem

National Black Business Month is not just a celebration—it’s an opportunity to create change. Supporting Black-owned businesses must extend beyond a single month and into year-round intentional action. Here are several ways individuals, organizations, and communities can help strengthen the Black business ecosystem:

• Buy intentionally: Make a conscious effort to seek out and purchase from Black-owned businesses, whether locally or online.
• Invest: If you’re in a position to fund or back businesses, look for opportunities to invest in Black founders. Venture capital, angel investing, and crowdfunding platforms are all avenues for support.
• Mentor and sponsor: Professional networks matter. Business leaders can provide invaluable guidance, introductions, and mentorship to emerging Black entrepreneurs.
• Partner: Large companies and institutions can create meaningful impact by including Black-owned businesses in their supply chains and vendor programs.
• Educate and advocate: Understand the barriers Black entrepreneurs face and advocate for policy changes and funding initiatives that support equitable access to capital and opportunity.

Why It Matters

When we support Black-owned businesses, we’re not just helping individual entrepreneurs—we’re fueling local economies, reducing the racial wealth gap, and building more inclusive industries. Studies show that Black business ownership is directly correlated with better economic outcomes for Black communities, including job creation and increased access to services.

Moreover, diverse business ownership leads to broader innovation. Entrepreneurs bring their lived experiences to the products, services, and solutions they create. By investing in Black businesses, we open the door to new ideas and perspectives that benefit everyone.

Looking Ahead

National Black Business Month reminds us of both the progress made and the work still to be done. It’s a moment to recognize excellence, share stories, and commit to action that empowers Black entrepreneurs—not just for a season, but as part of an ongoing commitment to equity and opportunity.

As we celebrate this month, let’s honor the businesses that inspire, employ, and lead. Let’s listen to their stories, invest in their futures, and work collectively to build a more inclusive economy—one where every entrepreneur has a fair shot to thrive.