Skip to main content

Number of New Black Businesses "Jumps" by 400%

recent survey found that African American businesses are increasing at the fastest pace ever. Survey results suggest the 400% rise occurred from 2017 to 2018.
Conducted by Guidant Financial and LendingClub, survey data was collected via email sent to "more than 2,600 business owners and entrepreneurs. It found that 45% of all small business in the country were owned by minority ethnic groups in 2018." Earlier (2015) survey results put this number at 15%.
Charts below show some of the survey data:
Survey sponsors noted that "the highest volume of African American entrepreneurs lives in Texas, followed by Georgia, California, Florida, and North Carolina." (During our discussion at the Denton Black Chamber of Commerce Dinner in March, 2014, we noted the elevated profile of Texas with respect to African American businesses: https://youtu.be/E_AgImRM_Wk. Also see: https://youtu.be/fSGje7OaLpk )
While we are encouraged by these initial survey results, we urge caution. These numbers are too divergent from past survey results to be immediately creditable. We are conducting a survey of African American businesses for the Houston Black Chamber of Commerce that will give us additional insight into the Guidant/LendingClub survey results. We note that Guidant and LendingClub are not African American-owned companies, and thus may have incorrectly structured the survey or interpreted the data. For example, we know that much of this "growth" should be seen as replacing African American businesses closed during the Great Recession.
We expect some will use these initial survey results as an excuse to support the current administration. It is unlikely that these survey results are entirely accurate. Nor can the administration can claim full and complete credit for these numbers if they are. Others will seek to dampen efforts to improve the business climate for Black businesses, always challenging. Finally, some will claim this survey shows that racism no longer is a factor in modern business life. We disagree.

Popular posts from this blog

Kamalanomics: Home and Health

Vice President Kamala Harris recently unveiled her economic plan, which builds upon and expands several initiatives from the Biden administration while adding new elements aimed at addressing economic challenges faced by American families. Her plan, dubbed the "Opportunity Economy" agenda, focuses on lowering costs for essential goods and services, particularly targeting housing, healthcare, and groceries. Key Components: 1. Housing: Harris proposes constructing three million new homes to address the housing supply crunch, which is more ambitious than Biden's two-million-home plan. She also advocates for a $40 billion "innovation fund" to encourage local governments to find solutions to housing shortages and make it harder for investment companies to buy up large numbers of rental properties, which has driven up rent prices. (See: Comments to the CalPERS Board of Administration, July 15, 2024 on Housing and Environmental Investing.) 2. Healthcare: Expanding on B...

Maternal Health Financing Facility for Black Women: A Solution to an Urgent Problem

Maternal mortality is a significant issue in the United States, with Black women disproportionately affected. Research conducted by the Centers for Disease Control and Prevention (CDC) has shown that Black women are more likely to die from pregnancy-related causes than their white counterparts. However, the issue is not new, and despite the increasing amount of data available, the disparities have remained unaddressed for far too long.  Creative Investment Research (CIR) is among the organizations that believe there is a solution to the problem. Through our proposed impact investing vehicle , the Maternal Health Financing Facility for Black Women (MHFFBW), we aim to tackle the mortality gap and support Black women during childbirth, which will, in turn, benefit their communities. The Facility, based on legally binding financing agreements containing terms and conditions that direct resources to individuals and institutions capable of addressing supply-side conditions at the heart...

William Michael Cunningham on Impact Investing, Blockchain, and Crowdfunding

September 2018 - 10 Questions William Michael Cunningham on Impact Investing, Blockchain, and Crowdfunding Interview by Carly Schulaka WHO: William Michael Cunningham WHAT: Economist, impact investing specialist, founder of Creative Investment Research WHAT'S ON HIS MIND: “Any finance professional in the U.S. should learn how to create a blockchain.” 1. You are an economist, an inventor, and an impact investing specialist. I’ve heard you say: “True innovation happens in a way that is independent of monetary returns.” How does this statement influence your work? It’s really about finding an interesting problem and applying financial technology to solving that problem or to dealing with that problem. You know, the people who invented the alphabet didn’t do so to make money. They had an interesting problem—communication on both a local and a grand scale—and if you were to calculate the social return for the invention of that technology or technique, it’s almost infinit...