Best States for Black-Owned Businesses

According to the Association for Enterprise Opportunity (AEO), there are around 5 million Black entrepreneurs in the United States, making up 14.5% of all business owners. Black-owned businesses have created over 1.3 million jobs and contributed more than $207 billion to the national economy.

Black-owned businesses are vital to the economy, impacting local communities and creating new jobs. They distribute wealth and increase inclusivity in the business market.

To celebrate National Black Business Month, B2B Reviews compared all 50 states and the District of Columbia across seven key metrics to highlight where Black-owned businesses are thriving.

For a more in-depth look at how we determined our rankings, check out our methodology.

Best States for Black-Owned Businesses in 2025

Sort this chart to see where your state ranks overall.

Top 10 States for Black-Owned Businesses

Discover why these states stand out and what places them among the top ten best states for Black-owned businesses.

1. Georgia

Georgia ranked at the top of our list for the best states for Black-owned businesses. It has the highest percentage of Black-owned businesses (34.49%) in the nation, which is significantly higher than the national average (10.15%). The state also saw a 26.36% increase in Black businesses from 2023 to 2024, which is higher than the national average of 26.02%. Additionally, 31% of Georgia’s population is Black, placing it fourth for that metric, and significantly higher than the national average (11.01%).

In Georgia, the median household income for all races is $74,664. Black people have a median household income $57,694, which is 77.27% of the state’s median income and higher than the national average percentage (70.19%). Similarly, Black-owned businesses in Georgia have one of the highest annual payroll amounts in the nation, based on the available data from the Census Bureau. The state approved 4.09% of the total 7(a) SBA loan amount in 2025, ranking fifth overall, which is higher than the national average of 1.95%.

2. Delaware

Delaware came in second for the best states for Black businesses. It has the eighth highest percentage of Black-owned businesses in the nation, at 17.12%, which is higher than the national average of 10.15%. Between 2023 and 2024, it saw a 36.16% increase in Black businesses, which is the ninth highest in the nation.

Additionally, 22.11% of the population is Black, ranking Delaware eighth for that metric, which is more than double the national average (11.01%). Finally, the Black median household income is 75.39% of the state’s median income, which is higher than the average of 70.19%.

3. North Carolina

Coming in third place is North Carolina. The state ranks tenth for the number of Black businesses, with 15.95% of all small businesses being Black-owned. Additionally, the state has the third-highest business success rate, at 60.7, which is more than the average (56.1). Similarly, 20.50% of North Carolina’s population is Black, placing it ninth for that metric.

The Black median household income is 71.80% of the state’s median income for all races and higher than the national average of 70.19%. Black-owned businesses have the tenth-highest annual payroll, and North Carolina approved 3.21% of the total SBA loan approval amount in 2025.

4. South Carolina

South Carolina comes in fourth place, with 19.46% of all small businesses being Black-owned, which is the seventh highest in the nation. The state also ties for eighth for total business survival rate, at 59.5. Finally, 25.02% of South Carolina’s population is Black, which is higher than the national average (11.01%) and seventh on our list.

5. Maryland

Coming in fifth place is Maryland. The state has the fourth-highest percentage of Black-owned businesses, at 29.14%, and is more than double the national average (10.15%). The state has the fifth-highest percentage of Black people, with 29.47% of the population being Black.

Additionally, Black households have the seventh-highest median income in Maryland, with Black households making 80.57% of the state’s median income. Maryland Black-owned businesses also have the second-highest annual payroll in the nation.

6. Alabama

In sixth place in Alabama, where 21.95% of businesses are Black-owned (the sixth highest in the nation), which is more than double the national average of 10.15%. Alabama also saw a significant increase in Black-owned businesses between 2023 and 2024, at a 27.76% increase. Finally, 25.80% of Alabama’s population is Black, which is higher than the national average of 11.01%.

7. Texas

Texas takes seventh place for the best states for Black-owned businesses. Of all small businesses, 14.68% are Black-owned, which is higher than the national average (10.15%). Texas also has a higher-than-average Black population, with 12.19% being Black.

In Texas, the Black median household income is 75.81% of the median income for all races, which is the twelfth-highest in the nation. Additionally, Black-owned businesses in Texas have the third-highest annual payroll, and Texas has approved the second-highest amount of 7(a) SBA loans in 2025, at 10.97%, which is significantly higher than the average of 1.95%

8. Florida

Florida ranks eighth among the best states for Black-owned businesses. Of all small businesses, 15.92% are Black-owned, which is the eighth-highest in the nation. Additionally, 15.07% of Florida’s population is Black, which is the twelfth-highest in the nation.

Florida’s Black households also have a higher-than-average median household income, making 75.90% of the state’s median household income. Black-owned businesses in Florida have the fourth-highest annual payroll. Similarly, Florida has approved 8.61% of the total SBA loan approval amounts in 2025, making it the third-highest in the nation.

9. District of Columbia

The District of Columbia takes ninth place with the second-most Black-owned businesses, at 33.86%, which is more than triple the national average of 10.15%. DC also has the highest percentage of Black-employer businesses, at 70.02%, which is significantly higher than the national average of 6.11%. Finally, 41.45% of the population in the District of Columbia is Black, the highest in the nation.

10. Virginia

Rounding off our list is Virginia. Of all small businesses in Virginia, 16.30% are Black-owned, which is the ninth-highest in the nation and more than the average of 10.15%. Similarly, Virginia comes in tenth for population, with 18.62% of the population being Black. Black-owned businesses in Virginia also had the seventh-highest annual payroll in the nation, according to the available Census Bureau data.

Photo by Christina @ wocintechchat.com on Unsplash

Methodology

To determine which states are best for Black-owned businesses, offering a positive environment where businesses can thrive, the B2B Reviews research team compared all 50 states and the District of Columbia across eight key metrics

We considered factors like the percentage of Black-owned businesses, the percentage of those that were employer businesses, the percentage increase of Black-owned businesses, the business survival rate of each state, and more. We also considered factors that contribute to local Black-owned businesses and the economy.

States were ranked within these metrics, earning a score based on the weighted value. We then graded them on a 100-point scale, with 100 points representing the states where Black-owned businesses thrive most.

Percentage of Black-Owned Businesses – Total 25 Points

Using the latest data from the U.S. Small Business Administration (SBA), B2B Reviews calculated the percentage of Black-owned businesses among all small businesses in each state. States with a higher percentage of Black-owned businesses earned more points.

Percentage of Employer Businesses – Total 15 Points

Using available data from the SBA, we calculated the percentage of Black-owned businesses that employed workers. States for which the SBA lacked data received a general score that did not count for or against final rankings. States with a higher percentage of employer businesses scored better.

Percentage Increase of Black-Owned Businesses – Total 15 Points

We found the number of Black-owned businesses in each state for the years 2023 and 2024. We then calculated the growth rate, assigning higher scores to states with larger percentage increases.

Business Survival Rate Total – 10 Points

We looked at the five-year survival rate for all small businesses in each state. States with a higher survival rate earned more points.

Percentage of Population That’s Black – Total 15 Points

States with a larger Black population tend to have stronger communities, positively impacting Black-owned businesses. We calculated the percentage of the Black population in each state, and states with larger Black population percentages scored higher.

Median Income of Black Households – Total 10 Points

The B2B Reviews research team compared the median income for Black households to the state’s median income (looking at years 2019-2023). We then calculated the percentage of Black households’ median income relative to the state’s median income. States with a higher percentage scored higher.

Black-Owned Business Annual Payroll – Total 5 Points

Using available data from the United States Census Bureau, the B2B Reviews team found the annual payroll amounts for Black-owned businesses in each state.

We included firms with sales/receipts ranging from less than $5,000 to $1,000,000 or more. (Some states lacked complete data, which did not negatively impact the state’s final ranking.) States with higher annual payroll amounts scored higher.

SBA 7a Loan Approval Amounts – Total 5 Points

Using data from the U.S. Small Business Administration, we found the amount of money each state approved in loans for the 2025 fiscal year. We then compared that to the total amount approved nationally, calculating the percentage. States with a higher percentage earned more points.

The Bottom Line

National Black Business Month, celebrated each August, honors the contributions of Black-owned businesses in the United States. This observance started nearly two decades ago, and it highlights the vital role these enterprises play in our economy.

Black-owned businesses contribute more than $207 billion to the national economy and employ more than 1.3 million people across all sectors—from healthcare and consulting to restaurants and beauty services.

However, despite their contributions, Black entrepreneurs often face unique challenges. To foster an inclusive economic environment, it’s important that both community members and state leaders actively support these businesses.

This National Black Business Month:

• Feature Black-Owned Products: Showcase Black-owned brands in your stores, restaurants, and other platforms.
• Source from Black-Owned Vendors: Buy supplies and services from Black-owned businesses to help build sustainable community support and economic growth.
• Encourage Reviews: Reviews make a difference. Promote Black-owned businesses by encouraging customers to leave positive reviews and ratings online.
• Focus on Local Businesses: Buying locally is always a great way to boost the economy in your area and support small business owners. Find and shop at local Black-owned businesses in your area.

By actively supporting Black-owned businesses, not only during August but year-round, you can contribute to a stronger, more diverse economy and further the role these businesses play in our communities.

Fair Use Statement

Feel free to share our findings for non-commercial purposes, but please provide a link back to this report so readers can access our methodology.

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