A report from the Brookings Institution lays out a strategy for expanding local economies across the United States, emphasising that supporting Black entrepreneurship is not only a step toward equity but also a sound economic approach.
The Brookings Metro Centre for Community Uplift introduced the Black Business Parity Dashboard this month, a data-driven tool aimed at guiding policymakers, advocates, and community leaders in tackling racial disparities in business ownership.
The dashboard offers detailed local and national data on Black-owned businesses and projects the economic impact if Black business ownership matched the proportion of Black Americans in metropolitan populations. By highlighting these gaps and potential outcomes, the tool seeks to drive targeted action to strengthen communities and economies nationwide.
According to Brookings, Black Americans exhibit entrepreneurial characteristics that surpass national averages, including innovation, resilience, and ambition. However, centuries of exclusion from wealth-building opportunities, combined with persistent barriers to credit and capital, have severely constrained their ability to scale businesses.
As a result, the racial wealth gap remains staggering. In 2022, the average white household held $240,120 more in wealth than the average Black household. Business ownership is one of the clearest pathways to narrowing that divide. In 2024, employer businesses (those with at least one paid worker) reported a median wealth of $550,000. In contrast, non-employer business owners had a median wealth of just $135,000, according to Gallup.
Despite recent growth in Black business creation, the ownership gap is still wide. Since 2019, the number of Black-owned businesses has risen by 22.2% year-over-year, according to LendingTree. But Black Americans, who make up 13.7% of the U.S. population, account for only 3.3% of all businesses, based on U.S. Census Bureau figures.
If Black business ownership reach population parity, Brookings projects the national economy could benefit from an estimated 757,000 new businesses, 6.3 million jobs, and $824 billion in additional revenue.
“This 22.2% increase is a good sign,” LendingTree Chief Credit Analyst Matt Schulz told Inc. magazine. “But it’s also a reminder of how much ground there is to make up. It says more about how low we started than how far we’ve come.”
The new dashboard offers more than just data. It serves as a planning tool for cities aiming to foster inclusive economic development. By identifying the potential economic impact of Black-owned businesses and the gaps that exist today, Brookings hopes to guide investments in infrastructure, funding access, mentorship, and education that can support long-term entrepreneurial success.
Brookings emphasises that achieving parity won’t happen overnight. But targeted efforts, informed by real-time data and community engagement, can push the country closer to a future where opportunity is more evenly distributed.
“At the end of the day, Black business growth isn’t just good for Black communities,” the report suggests. “It’s essential for the health and prosperity of the entire American economy.”
Written by Kweku Sampson, edited by Abeeb Lekan Sodiq
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