As I Am Black Business continues to promote economic empowerment in our community by supporting black owned businesses, we must first understand where the black community's most robust entrepreneurial businesses are located. Consumer advocacy site NerdWallet.com used several metrics to analyze 111 U.S. metropolitan cities with populations over 100,000.
They focused on two main questions during this analysis:
- Is the overall economic environment strong?
- Metrics Used: the number of businesses per 100 residents, the median earnings of the black population, cost of living, and the unemployment rate
- Are existing black-owned businesses successful?
- Metrics Used: the percentage of black-owned businesses, percentage of black-owned businesses with paid employees and average revenue per year
Two takeaways from the analysis are that the Salt Lake City metropolitan area has the highest average revenue and Buffalo, New York has the highest percentage of black-owned businesses with paid employees.
NerdWallet's top cities for black-owned businesses are:
1. Columbus, GA - Columbus is a hub for the aerospace industry, automotive manufacturing, defense, technology and tourism. Additionally, the city’s Uptown district is a center for locally owned restaurants, boutiques and salons. Over a third of businesses in Columbus are black-owned, including the historic Sconiers Funeral Home and Citizens Trust Bank.
2. Montgomery, Alabama - Montgomery’s black population is growing faster than any other city on NerdWallet's list, and nearly a third of the businesses in the area are owned by black entrepreneurs. The city is in the middle of organizing its first Black Chamber of Commerce.
3. Atlanta-Sandy Springs-Marietta, Georgia - Atlanta has a comparatively affordable cost of living and a strong business environment. The state of Georgia has the nation’s third-largest black consumer market, worth over $73 billion. Notable businesses include B&S Electric Supply Co. and Engineering Design Technologies.
4. Memphis, Tennessee - With a large proportion of black-owned businesses, an affordable cost of living and a rich culture, Memphis is a solid place for businesses to blossom and flourish.
5. Washington-Arlington-Alexandria, Virginia - The nation’s capital offers a growing technology industry, an educated population and a dynamic mix of public and private sectors. Ben’s Chili Bowl, known for its famous customers including President Barack Obama, has been a celebrated black-owned business in the capital since 1958.
If you live in one of the 111 metropolitan cities, I encourage you to not only support the black-owned businesses, but take your family and friends as well. Doing so will not only put money back into the community, it will also give you the opportunity to build a rapport with the owner(s). If you would like to review the ranking methodology and view the study, click on the link below.
http://www.nerdwallet.com/blog/small-business/best-places-for-black-owned-businesses/