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Despite African Americans representing 13% of the U.S. population, only about 7% of the nation’s businesses are Black-owned. In recent years, growing awareness and initiatives have fueled a nationwide effort to uplift Black entrepreneurs. This article explores the states that create the most supportive environments for Black-owned businesses in 2026.
Most Supportive States for Black-Owned Businesses
If your state isn’t listed above, continue reading for a comprehensive ranking of states based on their support for Black-owned businesses.
How We Determined the Most Supportive States for Black Businesses
We analyzed four key factors to identify the best states for Black business owners:
- Number of Black-owned businesses per capita
- Employment numbers within Black-owned businesses
- Percentage of Black residents holding a bachelor’s degree or higher
- Percentage of Black workers in management and business roles
The first factor was the per capita number of Black-owned businesses, sourced from the Census’ Annual Business Survey. This metric reveals how conducive each state’s environment is for Black entrepreneurs.
Next, we examined the total number of employees working for Black-owned businesses to assess their scale and success.
Recognizing that business growth is linked to education, we also considered the percentage of Black residents with bachelor’s degrees or higher, drawing from the ACS. Higher education offers critical knowledge and networking opportunities essential for business success.
Finally, we utilized ACS data to look at the percentage of Black workers in management and business sectors. A robust community of Black professionals fosters valuable experience and mentorship.
Due to insufficient sample sizes in the Small Business Survey, Wyoming, Vermont, Connecticut, and Maine were excluded from our analysis.
1. Maryland
Education: 33.4%
Black-Owned Businesses: 6,570
Number of Employees: 64,023
Maryland ranks as the top state for Black-owned businesses, supporting 6,570 such enterprises, which employ 64,023 individuals.
2. Georgia
Education: 27.9%
Black-Owned Businesses: 8,929
Number of Employees: 83,781
Georgia is a prominent hub for Black business owners with 8,929 Black-owned businesses that employ 83,781 workers.
3. New York
Education: 27.0%
Black-Owned Businesses: 11,395
Number of Employees: 72,486
With 11,395 Black-owned businesses, New York ranks third in the nation, employing 72,486 individuals.
4. California
Education: 28.5%
Black-Owned Businesses: 10,287
Number of Employees: 81,530
Ranked fourth, California boasts 10,287 Black-owned businesses and the highest percentage of Black managers at 36%, employing 81,530 workers.
5. Virginia
Education: 26.5%
Black-Owned Businesses: 5,294
Number of Employees: 59,175
Virginia ties for fifth place, housing 5,294 Black-owned businesses that employ 59,175 individuals.
6. Texas
Education: 27.0%
Black-Owned Businesses: 9,728
Number of Employees: 124,735
Texas ranks sixth, with Black-owned businesses employing a remarkable 124,735 workers—the highest in the nation.
7. New Jersey
Education: 28.2%
Black-Owned Businesses: 4,028
Number of Employees: 30,043
With 4,028 Black-owned businesses, New Jersey is also notable for its high percentage of Black residents with bachelor’s degrees at 28.2%.
8. Massachusetts
Education: 30.0%
Black-Owned Businesses: 1,893
Number of Employees: 26,509
Black business owners are drawn to Massachusetts, where 30% of Black residents hold a bachelor’s degree, supporting 1,893 Black-owned businesses employing 26,509 individuals.
9. North Carolina
Education: 25.5%
Black-Owned Businesses: 5,845
Number of Employees: 57,335
North Carolina ranks ninth, hosting 5,845 Black-owned businesses and 57,335 employees.
10. Florida
Education: 23.1%
Black-Owned Businesses: 11,932
Number of Employees: 72,280
Florida rounds out the top ten, with 11,932 Black-owned businesses employing 72,280 workers.
Summary of the Most Supportive States for Black Businesses
While Maryland leads the pack, Black business owners can find a supportive environment in any of the top ten states listed above. Our rankings aim to guide Black entrepreneurs in finding ideal locations to establish and grow their businesses, enhancing their chances of success.
| Rank | State | Education Percent | Black-Owned Businesses | Number Of Employees |
|---|---|---|---|---|
| 1 | Maryland | 33 | 6,570 | 64,023 |
| 2 | Georgia | 27 | 8,929 | 83,781 |
| 3 | New York | 27 | 11,395 | 72,486 |
| 4 | California | 28 | 10,287 | 81,530 |
| 5 | Virginia | 26 | 5,294 | 59,175 |
| 6 | Texas | 27 | 9,728 | 124,735 |
| 7 | New Jersey | 28 | 4,028 | 30,043 |
| 8 | Massachusetts | 30 | 1,893 | 26,509 |
| 9 | North Carolina | 25 | 5,845 | 57,335 |
| 10 | Florida | 23 | 11,932 | 72,280 |
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Author
Amanda Postma is a writer for the Zippia Career Advice blog with a focus on creating entertaining content to help you through your job search. She received her BA from the University Of Missouri-Columbia.
