Photo:Florida ranked 1st overall in the number of black-owned businesses.
The Sunshine State Ranked 3rd Best for Black Entrepreneurs
NEW YORK – February 19, 2020 – Whether it’s a software startup, an accounting firm, or a coffee shop, location is the ultimate factor for success for any business owner. According to this inaugural study from FitSmallBusiness.com, the digital business publication, half of the best states for African American entrepreneurs are concentrated in the south, with Georgia topping the charts.
The report found that the leading states possessed robust economic incentives, a reasonable average corporate tax rate, and, to no surprise, a high number of African American-owned businesses, according to data that FitSmallBusines.com editors researched and analyzed.
In addition, the "FitSmallBusiness.com State of Black Entrepreneurship in the U.S.” report* found that more than half (53%) of respondents believe that Black entrepreneurs have more business opportunities in 2020 than ever before.*The total sample size of this first-ever report was 1,306 U.S. adults, while the fieldwork was undertaken between February 7-10th of this year. FitSmallBusiness.com partnered with YouGov to produce this report.
Another compelling point: more than a third (39%) of respondents believe that the U.S. economy would be in a better position if there were more opportunities for Black entrepreneurs.
As to the most successful states, FitSmallBusiness discovered that those in the Top 10 all enjoy a robust, overall financial outlook. They also benefit from a healthy dynamic of African American-owned business success. While the Top 10 boasted established “business hubs” like Texas, California, and New York, non-traditional states such as Mississippi, Oklahoma, and North Carolina also produced winning ingredients.
You can find the full list HERE: https://fitsmallbusiness.com/black-entrepreneurship-2020/
THE TOP 10 STATES FOR BLACK ENTREPRENEURS – 2020
5) North Carolina
8) New York
To provide an overall outlook of the states, the editors at FitSmallBusiness.com compiled data, focusing on the following topics: financial optimism, government incentives, and overall business opportunity, among others. The digital publication also gathered insights from Kauffman Indicators of Entrepreneurship, WalletHub, and the U.S. News & World Report to rank each state – resulting in the publication’s first annual study of “Best States for Black Entrepreneurs”.
FITSMALLBUSINESS METHODOLOGY ON STATE RANKING
FitSmallBusiness used the following metrics and data barometers to analyze and ultimately rank the “Best States for Black Entrepreneurs”
Start-Up Climate and Opportunity (35%) (per Kauffman Indicators Of Entrepreneurship)
- Growth Rate
- Survival Rate
- New Job Creation And “Opportunity Share” of New Entrepreneurs
Economic & Financial Health (15%)
- Cost of Living (per World Population Review’s Cost Of Living Index By State)
- Corporate Tax Rate (per Tax Foundation’s State Corporate Income Tax Rates)
Black-Owned Business Success (35%) (per U.S. Census Annual Survey Of Entrepreneurs)
- Number of Black-Owned Businesses
- Number of Paid Employees
Social & Financial Equality (15%)
- Best States for Equality Ranking (per U.S. News & World Report)
- Racial Integration Ranking (per WalletHub)
*All figures not pertaining to state data are from YouGov Plc. While the survey was carried out online, the figures have been weighted and are representative of all U.S. adults (aged 18+).
“Entrepreneurship is the backbone of the American economy and minority-owned businesses are no exception to that fact,” said FitSmallBusiness Special Projects Editor, Michael De Medeiros. “With this being the inaugural study, our goal was to focus on the data that paints an overall picture of what the African American entrepreneur faces in the business world. While we weren’t surprised by certain findings, some of the state rankings told an interesting story of the unique journeys that African American entrepreneurs have to traverse. Ultimately, we hope that our continuing work to identify the best states for minority entrepreneurship will lead to new businesses outside of just the most prosperous areas of the U.S.”
With a rapidly growing monthly readership of more than 3 million, FitSmallBusiness.com is an online publication devoted to helping small business owners. Its full-time staff of writers spends hours of research, data analysis, and interviews with industry experts to answer the questions that owners want in order to run a successful small business.