Economic Development
Black businesses are vital to the Black community because they can be a chief employer of African Americans. Black businesses provide economic growth to black communities. The opportunities and resources Black businesses offer are not only financial, but black businesses develop pride and self reliance and enable black communities to reverse the perception that the Black community must be dependent on mainstream society.
According to the U.S. Census, New York accounted for the highest percentage of all black-owned firms with 10.8 percent or 129,329 firms, grossing over $7.5 billion dollars. California, Florida are second and third on the list of the top four states that boost the highest percentages of all black-owned firms respectively at 9.4, 7.6 percents. Georgia rounds out the list housing 6.4 percent of all black owned firms grossing over $5.7 billion dollars.
Source: The U.S. Census 2002 Survey of Business Owners (SBO)
Did You Know?
According to the Ewing Marion Kauffman Foundation,
- Black-owned firms get an average of less than $30,000 in startup capital, whereas white-owned startups get an average of more than $80,000 in initial capital.
- The median level of net worth among blacks is $6,200; eleven times lower than the white level. Low levels of black personal wealth may be detrimental to securing capital because this wealth can be invested directly in the business or used as collateral to obtain business loans.
- Black-owned firms experience higher loan denial probabilities and pay higher interest rates than white-owned businesses even after controlling for differences in credit worthiness and other factors.
**the above information is directly from the Ewing Marion Kauffman Foundation research paper from the study’s results titled, "Patterns of Financing: A Comparison between White- and African-American Young Firms.”
Source: Ewing Marion Kauffman Foundation
http://www.kauffman.org/research-and-policy/comparison-between-white-and-african-american-young-firms.aspx
Did You Know?
- According to the U.S. Census, in 2002 there were 1.2 million black-owned firms in the U.S., employing nearly 754 thousand persons and generating nearly $89 billion in business revenues. -
Source: The U.S. Census 2002 Survey of Business Owners (SBO)
- There are approximately 54,325 minority owned businesses in the Greater Philadelphia area according the 2002 U.S. Census.
Source: http://www.bizjournals.com/kansascity/stories/2009/02/23/daily29.html
The recent recession has left many people in the United States unemployed. However, because of the unrelenting age of discrimination Black American unemployment rates are significantly higher than the national and local unemployment rates.
- The National Urban Leagues (NUL) reported in 2005 that the unemployment rate for African Americans is double that of white Americans. NUL president Hugh Price went on to say, “one of the reasons for the high rate is that some people may be unemployable because their skill levels are not conducive to holding a steady job.”
Sources: Robinson, Samantha (2005). Study shows black unemployment rate doubles rate of whites. The Daily Egyptian, retrieved on 8/15/09 from, http://newshound.de.siu.edu/online/stories/storyReader$5316
Did You Know?
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Unemployment rates for Black Families and Philadelphia- The Bureau of Labor Statistics reports that Black or African American Adults have the highest Unemployment rate in 2009 at 14.9 percent in the second quarter. However, Philadelphia’s unemployment rate is 6.7 percent.
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Home ownership for Black Families in Philadelphia- The Greater Philadelphia region ranks 10 in Median Housing prices at $225, 306.00 for existing Single Family homes of the top 25 Largest Metropolitan Statistical.
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Personal Income for Black Families in Philadelphia- In 2009, Select Greater Philadelphia reported that Greater Philadelphia region has the one of the highest levels of per capita personal income among the largest U.S. Metropolitan Statistical Areas (M.S.A.s) at $ 47, 580.00. Whereas, in 2000 the U.S. Census reported that 48.1% of Black Philadelphians make less than $25,000. The median level of net worth among blacks is $6,200; eleven times lower than the white Americans.