The African American community is no stranger to entrepreneurship. According to the U.S. Small Business Administration, Black Americans own 3.5 million businesses, employing over 1.2 million people. These entrepreneurs are at the forefront of a new generation of wealth and ownership for the Black community. However, Black-owned businesses thrive more in some American cities than others. As more Black entrepreneurs emerge, where are the best destinations to set up shop? Here are the U.S. cities with the most Black-owned businesses, according to a new survey from LendingTree.
Atlanta
The culture will forever love Atlanta, and the city has the Black-owned businesses to back it up. According to LendingTree’s new study, the Atlanta metropolitan area has the most Black-owned businesses in the U.S. This is the second year in a row the city has led with the most Black entrepreneurs making moves and changes in the Peach State. As of 2022, Atlanta had 10,689 Black-owned businesses representing various industries, including food, hair, healthcare, and entertainment.
Despite having the most Black-owned businesses in the U.S., there is a drastic disparity in resources available for Black entrepreneurs, according to LendingTree’s study. Additionally, even though the city has the fifth-largest African American population among metropolitan American cities, only 8.8 percent of its business owners are Black. Although this disparity is stark, multiple organizations in Atlanta are working to redirect resources and opportunities for Black business owners, including the Atlanta Black Chambers and the Atlanta Business League. Black-owned businesses in Atlanta are still thriving, with notable examples like Tyler Perry Studios, viral restaurant The Slutty Vegan, God Is Dope apparel company, and 44th and 3rd Booksellers.
Washington, D.C.
Washington, D.C., isn’t called Chocolate City for nothing. The U.S. capital ranks second in LendingTree’s survey for having the most Black-owned businesses in the country. The city is filled with Black entrepreneurial endeavors. Washington, D.C., was nicknamed Chocolate City in 1957 when it became the first large U.S. city with a majority Black population. Today, the city has 8,768 Black-owned businesses spread across town. Everyone has their favorite Black-owned businesses in D.C. However, next time you’re in the capital, be sure to stop by Busboys and Poets bookstores, Oohh’s and Aahh’s soul food restaurant, and The Sweet Lobby, just to name a few.
Memphis
It’s 7 p.m. on a Friday, 95 degrees, and Memphis is coming in hot as the third U.S. city with the most Black-owned businesses. Black businesses in Memphis are just as beloved as hometown hero and recording artist Glorilla, and they have the numbers to match. However, it’s a drastic drop from Washington, D.C.’s numbers. As of 2022, the city had 1,209 Black-owned businesses, representing 6.7 percent of the city’s entrepreneurial community.
Memphis is not only a hotspot for Black-owned businesses, but also a hub for Black entrepreneurial history. Down on Elvis Presley Boulevard, travelers will find one of the only Black-owned banks in the country — Tri-State Bank. The bank opened in 1946 and now stands alongside a plethora of Black-owned businesses on the boulevard.
Augusta, Georgia
Augusta ties with Memphis on LendingTree’s study of cities with the most Black-owned businesses. The city has only 579 Black-owned businesses. However, due to its population size, it has the same percentage of Black entrepreneurs as Bluff City. Although their numbers are small, Black-owned businesses in Augusta are still showing up and standing out. A Navy veteran opened the city’s first Black-owned brewery earlier this year, and Augusta is making strides to support minority-owned businesses in new ways.
