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It comes as no surprise that many states are less than supportive when it comes to black-owned businesses. So we wanted to look into which states exactly aren’t supportive. With only 7% of businesses in America being black-owned, we found out which states are not supporting the growth of that percent.
States Least Supportive of Black-Owned Businesses
All of these states have surprising low numbers surrounding their ranking from the number of black businesses to low percentages of black residents with a bachelor’s degree, but more on that in a minute. If you didn’t see your state on the list, maybe it’s because you live in a supportive community. Don’t forget to check the table below to see just how supportive, or unsupportive, your state is.
We looked at four factors to determine the worst states for black business owners:
The first factor we examined was the number of black-owned businesses per capita, using data from the Census’ Annual Business Survey.
After that, we pulled in the number of workers employed by black businesses to gauge the size
and the success of those businesses.
However, businesses don’t grow in a vacuum. We then looked at the percent of black residents with a bachelors’ degree of higher from the ACS.
Finally, using the trusty ACS data, we examined the percent of black workers who work in management and business.
Black-Owned Businesses: 33
Number of Employees: 166
South Dakota properly ranks at No. 1 as being the least supportive state for black-owned businesses as it has the lowest percentage of black residents with a bachelor’s degree or higher in the U.S. Only 6% of black residents in the state have earned a bachelor’s degree. South Dakota only supports 33 black-owned businesses, which is also one of the lowest numbers in the country.
Black-Owned Businesses: 97
Number of Employees: 317
Of the 97 black-owned businesses in North Dakota, there are only 317 employees making North Dakota the second least supportive state. The state also has a low track record for the percentage of black residents with a bachelor’s degree or higher coming in at 14.8%.
Black-Owned Businesses: 196
Number of Employees: 1,447
Iowa comes in as the third least supportive state of black-owned businesses. The state’s 196 businesses gives it the fourth lowest number in the country.
Black-Owned Businesses: 77
Number of Employees: 403
Idaho isn’t much better than South Dakota with only 6.7% of black residents earning a bachelor’s degree and only 77 black-owned businesses in total. But the state’s saving grace is the number of workers that are employed at those businesses. The 403 employees number is the reason that Idaho is fourth on this list.
Black-Owned Businesses: 86
Number of Employees: 1,363
New Hampshire comes in as the fifth least supportive state of black-owned businesses. The state only supports 86 black-owned businesses. While that number is fairly low amongst the country, the state does boast a whopping 18% of black residents that have received a bachelor’s degree.
Black-Owned Businesses: 751
Number of Employees: 9,272
Kentucky comes in No. 6 least supportive of black-owned businesses. The state is definitely far away from being supportive with only 18.6 of black residents earning a bachelor’s degree or higher.
Black-Owned Businesses: 226
Number of Employees: 1,491
Utah’s No. 7 spot of being least supportive comes as no surprise. Utah has one of the lowest numbers of black-owned businesses in the country with only 226 calling the state home.
Black-Owned Businesses: 1,044
Number of Employees: 15,329
Wisconsin boasts the highest number of black-owned businesses on this list, but it’s not enough to keep it off the top 10. While the state supports 1,044 black-owned businesses, it also has one of the lowest percentages of black residents with a bachelor’s degree at 16.7%.
Black-Owned Businesses: 700
Number of Employees: 5,029
Arkansas tops our chart of least supportive state at No. 9. While the 700 black-owned businesses that reside there is one of the higher numbers, the state’s 17.8% of black residents with a bachelor’s degree definitely hurt its ranking.
Black-Owned Businesses: 768
Number of Employees: 12,002
Nevada comes in as the tenth least supportive state with only 16% of its black residents having earned a bachelor’s degree or higher. That percentage is the fourth-worst in the entire country.
Conclusion: While black-owned businesses are already few and far in-between, these 10 states don’t help much at all. With the added low education rates and number of employees, these states are the least supportive of black-owned businesses. The complete list of how supportive each state ranks is listed in the table below.
|Rank||State||Education||Black-Owned Businesses||Number Of Employees|
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