Removing barriers: How policy interventions can sustain Black-owned employer business growth

For city and state leaders who are looking to create economic opportunities by increasing jobs or community assets, one solution can be found in supporting the growth of Black-owned businesses. From 2017 to 2022, the number of Black-owned businesses surged, representing over half of all new employer businesses (businesses with at least one employee). In 2022, Black-owned employer businesses added $212 billion in revenue to the economy and paid over $61 billion in salaries. Yet major challenges for Black entrepreneurs and business owners persist across the entirety of the business development lifecycle: as a startup, during the transition to an employer firm, and in sustaining growth as an employer firm. Taking actions that address these barriers—through corporate, bank, and governments reforms—would not only benefit Black Americans, but the nation as a whole as well. 

On August 11, Brookings Metro—in collaboration with the Path to 15|55 initiative, which endeavors to grow the percentage of Black-owned employer firms— will discuss how the business environment has changed for Black entrepreneurs. The event will explore how the business environment has changed for Black entrepreneurs. Senior Fellow and Center for Community Uplift Director Andre Perry will present new data, research, and policy recommendations for supporting their growth and expansion. Tynesia Boyea-Robinson, president and CEO of CapEQ, will then moderate a discussion on public, private, and philanthropic sector solutions to open new pathways for Black entrepreneurs to access capital, and for cities and regions to sustain strong growth in Black-owned businesses.