By Lending Tree
Photos: YouTube Screenshots
National Black Business Month, observed every August, is a time dedicated to recognizing the contributions of Black-owned U.S. businesses. It also highlights the importance of supporting Black entrepreneurs and other business owners of color, who often face unique challenges such as limited access to capital and resources.
LendingTree’s latest data-driven analysis sheds light on the financial landscape for minority-owned businesses in the U.S. Researchers identified where minority-owned businesses are thriving and where they’re struggling the most, using five key metrics, including state percentages of minority-owned businesses and pay ratios.
Key findings
- Minority-owned businesses thrive the most in Maryland. The state finishes in the top 10 in three of five metrics, with minority-owned businesses paying employees the fourth-highest relative to all businesses. Additionally, Maryland has the sixth-highest percentage of businesses that are minority-owned and the 10th-highest rate of these businesses that have operated for at least six years. Nebraska and D.C. join the top three.
- Minority-owned businesses thrive the least in Iowa. The state finishes in the bottom 10 in two of five metrics, with the rate of minority-owning businesses being seventh-worst in the nation. It also saw the seventh-worst year-over-year growth in the number of these businesses. Idaho and Rhode Island join the bottom three.
- States in three regions occupy the No. 1 spots in our metrics. Hawaii (West) has the highest percentage of minority-owned businesses, while Nebraska and South Dakota (both Midwest) have seen the biggest year-over-year growth in this number. Meanwhile, Tennessee (South) has the highest rate of minority-owned businesses with at least $500,000 in revenue.
- Northeastern states take the last spot in four of the five metrics. Vermont has the lowest percentage of minority-owned businesses, while Rhode Island has seen the worst year-over-year growth in this number. Additionally, Pennsylvania has the lowest percentage of minority-owned businesses open for at least six years.
- Minority-owned businesses pay their employees about two-thirds of what businesses across the states analyzed pay on average. Employees at minority-owned businesses garner 67.7% of the earnings across all businesses. This ranges from a low of 50.6% in Connecticut — $36,393 versus $71,861 — to a high of 83.0% in North Dakota — $45,114 versus $54,334.
Full analysis >> https://www.lendingtree.com/business/minority-owned-businesses-study
