Black-owned Businesses: Revenues and number of firms increase
Revenues generated by the nation’s 1.2 million Black-owned businesses rose 25 percent between 1997 and 2002 to $88.8 billion in 2002, while the number of such firms grew by 45 percent in the same five-year period, according to the U.S. Census Bureau’s “Survey of Business Owners: Black-Owned Firms: 2002.” The findings confirm that Black-owned businesses are among the fastest growing segments of the U.S. economy.
The report, released this month, shows that New York had the greatest number of Black-owned firms with 129,324 in the period surveyed, followed by California with 112,873; Florida, 102,079; Georgia, 90,461; and Texas, 88,769. These five states accounted for about 44 percent of all Black-owned businesses in the country. Other states with high numbers of Black-owned firms include Maryland, Illinois, North Carolina, Michigan, Virginia and Louisiana.
Cook County, Ill., and Los Angeles County, Calif., had the largest numbers of Black-owned businesses in the nation. Cook County, with 54,758 Black-owned firms, accounted for 80 percent of all Black-owned firms in Illinois. Los Angeles County, with 52,674 Black-owned firms, accounted for 47 percent of all Black-owned firms in California. These counties were followed by Kings County, N.Y. (37,499); Prince George’s County, Md. (28,389); Miami-Dade County, Fla. (28,359); and Harris County, Texas (27,770).
New York City had more Black-owned firms than any other city in the country, 98,076. The city with the second largest number of Black-owned businesses was Chicago (39,424), followed by Los Angeles (25,958), Houston (21,226) and Detroit (19,530).
• In 2002, nearly 4 in 10 Black-owned firms operated in health care and social assistance, personal services, and repair and maintenance. Blacks owned 9.7 percent of all such businesses in the United States.
• Retail trade, health care and social assistance services accounted for 28.6 percent of all Black-owned business revenue.
• There were 10,727 Black-owned firms operating in 2002 with receipts of $1 million or more. Revenue for these firms was about $49 billion, compared to $40 billion in 1997, up 22 percent. These firms accounted for 1 percent of the total number of Black-owned firms in 2002 and 55 percent of their total receipts.
• There were 973 Black-owned firms with 100 employees or more in 2002, compared to 889 in 1997. These firms generated $16 billion in gross receipts, an increase of 31 percent since 1997 and accounted for 24.3 percent of the total revenue for Black-owned employer firms in 2002.
• Black-owned firms accounted for 5 percent of all nonfarm businesses in the United States in 2002.
• About 8 percent of Black-owned firms employed more than 756,000 people.