Atlanta leads nation in Black-owned businesses for 3rd consecutive year
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ATLANTA - For the third year in a row, Atlanta has the highest percentage of Black-owned businesses in the nation, according to a new analysis by LendingTree.
What we know:
The report found that 11.3% of businesses in Atlanta—approximately 13,000—are Black-owned, marking an 8.9% increase from last year. This solidifies Atlanta’s position as a hub for Black entrepreneurship and economic growth.
The report also highlighted nationwide trends, showing that Black-owned businesses in the U.S. grew by 22.2% year-over-year, with 3.3% of all businesses in 2022 being Black-owned.
Health care and social assistance remain the most common industries for Black entrepreneurs, accounting for about one in four Black-owned businesses.
The study also found that Black-owned businesses are most likely to be run by young Black women who have been in business for less than two years. Women play a significant role in Black entrepreneurship overall, with 39.1% of Black-owned businesses nationwide being led by women.
Why you should care:
Despite this growth, Black business owners still face significant obstacles. The LendingTree report identified two major challenges: achieving success within the first year and accessing startup business loans. Many Black-owned businesses struggle to gain traction in their early stages, making it difficult to sustain operations. Additionally, securing funding remains a persistent hurdle, limiting the ability of these businesses to expand and reach long-term success.
Atlanta’s leadership in Black entrepreneurship reflects a broader trend of economic empowerment and innovation within the Black community. However, the challenges outlined in the report highlight the need for greater access to capital and resources to ensure that new Black-owned businesses have the support they need to thrive.