The End of Black Business Month
As Black Business Month comes to an end, questions about the state of Black entrepreneurship in the greater Houston area emerge. Are entrepreneurs experiencing good or bad times? Are more government contracts being awarded to Black business owners due to the results of disparity studies?
In an effort to address these questions, the Defender asked several Black business organization leaders their thoughts and interviewed Harris County Commissioner Rodney Ellis, a crusader for disparity studies.
Facts & Figures
According to a recent Brookings Institution report using Census data, Blacks represented 14.2% of all Americans but only 2.4% of all employer-firm owners in 2020. With an average workforce of nine employees, these firms employed a total of 1.321 million people, adding $1.7 billion in aggregated payroll to the U.S. economy.
At the current growth rate of 4.72%, it will take 256 years to reach parity with the Black population in America, which is totally unacceptable.
The pandemic demonstrated Black-owned businesses; resilience with an increase in revenue and employees despite lining up behind Hispanic and Asian American-owned firms. The Brookings Institution points out that for African Americans, higher unemployment during COVID was a push factor for the decision to start a business.
The Houston metro area is ranked No. 6 among the top 10 highest number of Black-owned employer business firms but based on the volume of Black businesses, ranked 20th. However, the economic impact of Black-owned business tends to be smaller in metro areas with more Black residents.
Charles O’Neal
President Texas Association of African American Chambers of Commerce
“August is recognized as Black Business Month, but for those of using the business of Black business, every month is Black Business Month. Texas has the third-most Black owned businesses – and the most Black people! When we support Black business, we improve the quality of life in Black Texas!”
Royce West
Texas Senator, Dallas
“I’d say that (the state of Black Business in Texas is) anemic. We’re still not doing what we need to do. We’ll continue to preach it and we’ll continue to do it. Are there opportunities available? Yes. But the question is whether we’re taking advantage of it. It is important businesses understand that business is politics and politics is business. And number one, making certain we understand what the issues are. Don’t come to me and say, I want a contract. Okay? I’m not gonna give you a contract, but I, I’ll give you an example.”
Dr. Courtney Rose Johnson
President, National Association of Real Estate Brokers
“The State of Black Business is hopeful! The murder of George Floyd brought awareness of the disparities. Several corporations made commitments to increasing their Black spending. The commitments have been made, now it is important for Black businesses to push for opportunities and for our advocacy organizations to hold corporate America accountable to fulfill the commitments.”
Ron Reynolds
Chair of the Texas Legislative Black Caucus
“The heartwarming tale of Black-owned businesses right here in Texas speaks volumes about our spirit and resilience.
Despite the hurdles we’ve faced, our state witnessed an uplifting 4.72% surge in Black-owned firms, outpacing the setbacks seen in white-owned businesses. This embodies the true entrepreneurial essence of our community. From 2017 to 2020, Black-owned businesses in the Lone Star State soared by an impressive 13.64%, leaving a substantial imprint on our economy. They raked in a remarkable $141.1 billion in gross revenue in 2020, marking an inspiring 11% upswing since 2017. What’s even more remarkable is that they provided employment to 1.321 million Texans, generating thousands of fresh job opportunities and fortifying our workforce.
These numbers spotlight the invaluable contribution of Black
entrepreneurship in shaping our state’s economic landscape.”