Atlanta Lands In the Top Spot For Black-Owned Businesses, Report Finds

Atlanta has been one of America’s most popular cities for decades. Now the ATL is home to the most Black-owned businesses in the nation.

According to a report by LendingTree, among the 50 metro cities in America with the most Black-owned businesses, Atlanta had the highest percentage of Black-owned companies with 7.4%.

In 2020, 2.4% of U.S. businesses had Black owners, which was the same percentage as the year prior. Over this period, the Black population remained unchanged.

Small business applications rose during COVID-19 pandemic. Matt Schultz, LendingTree credit analyst, said the unchanged percentage in Black business owners during this time was likely due to financial disparity.

“That the percentage of Black-owned businesses was unchanged during that period could be due in part to a lack of access in Black households to the capital needed to start a business,” Schultz says. “Black households tend to have lower incomes, leaving less money available to save or to invest in a small business. Add in other financial headwinds faced in the Black community, including ongoing systemic issues, and it creates a challenging environment for the creation and growth of a business.”

The report also says that Portland, Oregon, has the lowest rate of Black-owned businesses among the 50 metro cities in the U.S.. In Oregon only 0.9% of businesses are Black-owned. Blacks only make-up 2.8% of the population, which is also the lowest among the 50 metro cities.

Shultz says that starting a business is hard work, but not impossible.

“There are many organizations that can be invaluable tools for your business. Groups like the Black Business Association, U.S. Black Chambers, the Small Business Administration and many others have resources to help you with building business plans, training, promoting, networking, building capital and most any other aspect of business.”

He added: “We tend to glamorize entrepreneurship, but the truth is that it is often grueling, all-consuming work,” he says. “If you have friends and family rooting for you and supporting you emotionally, it can make a huge difference on those long days when you’re ready to give up and move on.”