How Are Black Businesses Succeeding In 2024?
In 2024 Black-owned businesses continue to grow and show resilience, despite historical challenges. Across multiple industries, Black entrepreneurs are stepping strongly for the years to come thanks to increased access to funding, new technology opportunities, and mentorship.
This article explores the factors behind Black-owned business success, the challenges they face, and the outlook for next year.
Black-Owned Businesses Before & After The Pandemic
The success of Black-owned businesses today began before the pandemic, between 2017 and 2020. During this time, Black-owned businesses saw a growth rate of 13.64%, a significant increase compared to the national average for all businesses.
Revenue and employment increased during this period, with Black-owned firms contributing over $141 billion in revenue and creating thousands of new jobs.
Black-owned businesses in 2024 continue to experience this growth due to the increased attention and resources provided during the COVID-19 to help minimize the economic downfall. An essential part of this success is thanks to Black women, whose businesses grew by over 18% between 2017 and 2020, outpacing other minority groups (1).
Key Factors of Success of Black Entrepreneurs
In 2024, Black-owned businesses are experiencing significant growth and success due to various reasons such as increased access to capital, technology, and mentorship. Let’s take a closer look at each one:
Access to Capital and Resources
One of the main reasons for the success of Black entrepreneurs this year is the increased availability of funding and resources. Federal and corporate investments have significantly boosted Black business funding opportunities to help people recover from the pandemic.
Corporations, for example, have supported Black businesses with billions of dollars in the form of loans and equity-based funding. This has allowed many Black firms to expand, hire more employees, and pursue new ventures that would have been out of reach a few years ago.
Networking and Mentorship
Mentorship and networking programs play a key role in helping Black entrepreneurs navigate the business world. Organizations like the Minority Business Development Agency (MBDA) and the Small Business Administration (SBA) offer mentorship, resources, and grants designed specifically for minority-owned businesses.
These programs help entrepreneurs network with larger corporations and secure contracts that can significantly boost their growth.
Tech and Digital Transformation
The expansion of e-commerce and digital marketing has allowed Black-owned businesses to tap into new customer bases and compete on a higher scale. With the help of social media platforms and digital tools like Shopify, entrepreneurs can easily market their products and services more effectively, mostly for free.
Further, the current tech industry is seeing a lot of Black innovators creating apps and platforms specifically for solving challenges for Black entrepreneurs.
Challenges for Black Entrepreneurs
Although the progress achieved is incredible, there’s still a long way to go. Access to venture capital remains the number one challenge for Black entrepreneurs, thus they receive disproportionately low amounts of VC funding compared to their white counterparts. A shocking statistic, 47% of Black business owners who apply for a loan are denied (2).
The racial wealth gap also persists, which limits the amount of startup capital Black owners can generate from their personal savings.
Additionally, while corporate and government initiatives have helped a lot, there’s still plenty to do to achieve true equity in the business landscape. Black business owners are pushing for a more transparent and equal change in how funds are distributed and how businesses are supported.
The success of Black-owned businesses in 2024 signals a bright future for minority entrepreneurship. While there are still challenges to overcome, increased access to capital, the rise of digital tools, and growing community support are key contributors to their success.