Black-owned businesses continue to expand across the United States, reflecting steady growth in entrepreneurship and community investment, even as disparities in access to capital and markets remain. Recent data show that 2025 is shaping up as another year of strong performance for Black entrepreneurs, with Tennessee emerging as a leader in opportunity and growth.
A 2023 Pew Research Center survey found that more than one in five Black adults in the U.S. view business ownership as essential to their definition of financial success. That aspiration is increasingly reflected in real numbers. The U.S. Census Bureau reported in May 2025 that Black or African American–owned firms now account for an estimated 4.4 million nonemployer businesses, representing about 14.9 percent of all such firms nationwide, with receipts totaling nearly $131 billion.
For employer firms, progress has been steady as well. The 2022 Annual Business Survey recorded 194,585 majority Black-owned businesses, up from 124,004 in 2017—a 57 percent increase in just five years. Combined revenue for those companies rose from $127.9 billion to $211.8 billion, a jump of 66 percent. By 2025, according to the nonprofit AEO Works, Black-owned firms contribute more than $207 billion annually to the national economy, and employment at these firms has grown by 33 percent since 2012, outpacing overall business growth.
Health care and social assistance continue to dominate as the leading industry for Black-owned firms, followed by professional services, transportation, administrative support, retail, and food services. Nearly 90 percent of these businesses operate in urban areas, though growth in suburban and smaller metropolitan markets has accelerated since the pandemic.
Tennessee has distinguished itself as one of the most favorable states for Black entrepreneurs. A 2023 analysis by Merchant Maverick ranked Tennessee second in the nation, citing low business costs, strong consumer demand and the absence of a state income tax. The Federal Reserve’s 2025 “Firms in Focus” report on Tennessee noted that small and minority-owned businesses were rebounding strongly after the pandemic, supported by state-level access-to-capital programs and increased participation in supplier diversity initiatives.
Despite the progress, challenges persist. Memphis, where nearly half the population is Black, continues to show an imbalance between demographic representation and ownership. Only about 7 percent of employer firms in the metro area are Black-owned, according to a Heartland Forward study. Nationwide, optimism among Black entrepreneurs remains high. A 2025 Model D Media survey found that 71 percent of Black business owners plan to increase full-time hiring this year, and 55 percent expect to add part-time workers.
Together, these data points reveal a clear trend: Black business ownership is growing in reach and confidence. From Nashville to Memphis and beyond, the drive toward economic self-determination and community reinvestment continues to strengthen the foundation of America’s Black middle class.
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