Location can be a crucial factor in successfully taking a business off the ground, especially for Black entrepreneurs.
The number of Black-owned businesses in the United States has climbed by more than 8% over the last two years, with over 2.5 million Black business owners nationwide, according to Census Bureau data.
Despite the fact that Black-owned businesses appear to be flourishing across the country, some areas have proven to be more advantageous for startup business owners.
In light of this, we performed research to identify the cities with the most successful Black-owned businesses. The findings below are the culmination of our analysis of cities across major dimensions.
1. Washington, D.C.
In 1957, Washington, D.C., often known as the Chocolate Metropolis, became the first major American city with a majority of Black residents.
Despite the city’s declining Black population since then, LendingTree ranks it as the second-best city for Black entrepreneurs, with 8,649 of its 111,872 enterprises being Black-owned and generating an average annual revenue of 95,230
Black business owners in the area can take advantage of a number of initiatives, services, and sources of assistance, including the Greater Washington DC Black Chamber of Commerce, the Black Owned Small Business Expo, and the Washington Area Community Investment Fund.
2. Rochester, NY
Rochester is a Black company owner’s dream; it has a low cost of living, Black-owned companies that generate six figures or more in annual sales, and a population that is 39.4% Black. Out of the 100 cities we looked at, Rochester kept acing it, ranking in the top 20 for the percentage of Black residents and the top five for cost of living.
Although the city’s median income is on the lower side, it is evident that Black entrepreneurs in Rochester aren’t being hindered by this. So why are you still waiting? Open a Rochester New York LLC in your Bills gear right now.
Washington, DC, is the finest American city for Black entrepreneurs. But what specifically makes this city so fantastic for Black citizens who are eager to enter the world of self-employment?
For starters, the city came in 11th for the highest percentage of Black residents of the 100 cities studied. Add to that a Black population of just under 50 percent and a residential median income of $69K a year, and Washington has proven itself to be a great city for small business owners to thrive.
Already in the DC area and rearing to get going on your next great business idea? Form an LLC in Washington, DC, with Incfile today.
3. Houston, Texas
Beyoncé and Megan Thee Stallion, two well-known Black women with prosperous business endeavors, were both born in Houston, Texas.
Nearly 4,000 of the city’s 111,041 enterprises are owned by people of color, but the city makes up for this deficiency with the services it provides. Examples include
The Business Readiness Training Program provides support and development opportunities.
Black Book Houston brings visibility to Black-owned businesses
The entire state of Texas ranks in the top 10 best states for women in business and has the second highest startup survival rate of 81.90%
In order to help Black business owners flourish, the Black Marketing Initiative offers them networking opportunities as well as training.
4. Cleveland, OH
When considering the ideal location for Black-owned business success, Cleveland may not immediately come to mind, but rest assured that the Forest City has some tricks up its sleeve.
It ranks in the top half of our list for the average revenue of Black-owned firms and has one of the highest Black populations among all the cities we evaluated. Consider opening a business in Cleveland, Ohio, if you want to stretch your money further.
5. Charlotte, North Carolina
Even though Charlotte hosted the first gold rush in 1799, this does not mean that the city has been overrun. Far from it, in fact. Starting a business in North Carolina, and particularly in Charlotte, has many advantages, including a high average revenue for Black-owned businesses and a cost of living that is below the national average.
And though the Black population level only hits 35 percent, the black community is thriving and connected.
6. Oakland
The majority of Oakland’s 167-year existence has seen African Americans living there. They have played a crucial role in the city’s development from a mid-19th century railroad hamlet to the important port city, vibrant IT hub, and fashionable tourist destination it is today.
Oakland also needs black people to come back. Around 48% of the population was black in the 1980s, making it virtually entirely black, but throughout the years, the black population has steadily decreased. In reality, Oakland’s population increased by 50,000 from 2010 to 2020, however the black population decreased by 7% and is presently 20%. The pandemic undoubtedly aided in hastening this change.
Oakland is home to where the Black Panther Party was founded. West Oakland was once called the “Harlem of the West” and it had its own series of nightclubs and bars near current-day Mandela Marketplace and the West Oakland BART station. Oakland was also called the West Coast center of blues music. There is so much history here that we cannot afford to lose. So singles, you got this!! That gal or girl you may be looking for could be in Oakland!!
7. Houston
Houston is not just the most diverse city in Texas, but also in the entire country. Houston is at the vanguard of this, and diversity is essential for idea exchange, comprehending various viewpoints, and establishing safe spaces. About 23% of the 2 million residents are African Americans. Houston would be a fantastic choice if you wanted to move to a new location because it gives you the chance to network and establish relationships with many progressive blacks. Check out some of the popular places, like Rise Rooftop, The Alley Kat Bar & Lounge, Lost & Found, and The Spot Lounge & Bar.p
It also could be a great place to settle down and enjoy black family suburbs and relatively inexpensive housing compared to the rest of the US. Some of the best black neighborhoods, although they are still experiencing gentrification are Pearland, The Woodlands, and Sugar Land.