How many black entrepreneurs are there in the US?

At a glance: How many Black entrepreneurs are counted in federal data

Headline counts you can cite

black entrepreneurs in america

The most straightforward headline number for employer businesses is the Census Annual Business Survey 2022 figure. According to the ABS tables, there were about 194,585 Black or African American-owned employer firms in 2022, a clear point estimate for employer firms that reporters and researchers commonly cite Annual Business Survey characteristics tables.

For broader totals that include sole proprietors and other nonemployer businesses, the last comprehensive pre-ABS snapshot is the 2018 Survey of Business Owners. The SBO 2018 counted roughly 2.6 million Black-owned firms when nonemployer firms are included, which shows why total counts can be much larger than ABS employer totals SBO 2018 data and tables.

Put simply, most Black-owned businesses are nonemployer firms, so ABS employer counts are a smaller slice of the overall footprint. That difference in scope explains why two federal sources often produce very different totals even when each is accurate for what it measures ABS 2022 press materials.

The Annual Business Survey is designed to provide annualized estimates for employer firms by owner characteristics, including owner race and majority ownership. The ABS reports owner race based on majority ownership rules, which determine which firms are counted under a specific race category in the published tables Annual Business Survey press release and summary.

The Survey of Business Owners was a comprehensive decennial-style program that included both employer and nonemployer firms and produced the last full national snapshot in 2018. Because SBO and ABS use different collection approaches and timing, their totals are not directly interchangeable; the SBO total includes many very small, nonemployer businesses that ABS employer tables do not capture SBO 2018 data and tables.

Key definitions matter. ‘Majority ownership’ in ABS tables means the group identified holds more than 50 percent ownership. An ’employer firm’ is one that reports paid employees on payroll, while ‘nonemployer’ firms typically report no paid employees and are often sole proprietorships. These definitional differences shape which businesses appear under each race category in published tables ABS characteristics tables.

Employer firms versus nonemployer firms: why counts differ

ABS employer counts and SBO totals measure overlapping but different universes of businesses. The ABS 2022 employer-firm number is a useful, current measure of employer businesses, while the SBO 2018 total including nonemployer firms gives a broader count that captures many sole proprietors and microbusinesses ABS characteristics tables.

Nonemployer firms are businesses that do not report paid employees. They can include sole proprietors, independent contractors, and other small operators. Because nonemployer firms are numerous, they make up the majority of the total Black-owned firm count in the SBO 2018 snapshot SBO 2018 data and tables.

When you cite a number, decide whether you mean employer firms or all firms, and make that distinction clear to your readers.

For many reporting uses, the ABS employer count is the better annual comparator for employers, while SBO 2018 remains the standard reference for totals that include nonemployer businesses. Always name the source and the table when you cite a headline number.

Recent trends: new firm formation and sector patterns

Evidence from the Kauffman Index and from ABS releases indicates that new-firm formation among Black entrepreneurs rose in the 2020 to 2022 period compared with pre-pandemic levels, though the measures and sampling approaches differ across sources Kauffman Index entrepreneurship reports.

Industry breakdowns in ABS and SBO show concentration in service-oriented sectors. Black-owned firms are disproportionately represented in personal services, certain health care services, and retail and wholesale trade categories according to the published tables and industry summaries ABS characteristics tables.

When discussing trends, note the measurement caveat: different indexes and surveys use different definitions of startup activity, so rise in new-firm formation in one series may not match magnitudes in another even if they point in the same direction ABS 2022 summary.

Firm size, receipts and geographic patterns

ABS employer firms and SBA profiles show that most Black-owned firms are small and that employer firms represent a minority of all Black-owned businesses. The published ABS tables and SBA state profiles indicate lower average receipts for Black-owned employer firms compared with the overall firm median in several reported metrics ABS characteristics tables.

Many Black-owned businesses operate as very small firms or sole proprietorships. For state and metro context, SBA small-business profiles provide practical snapshots that can be used together with ABS tables to build a local picture of business scale and receipts SBA small business profiles.

To examine geographic concentration, start with ABS tables by industry and then compare with SBA state summaries. See the news page for related local context. News

How to interpret the numbers: limitations and common caveats

ABS provides improved annual measurement by owner race, but it is not directly comparable to SBO in all respects because of design and timing differences. Analysts should treat time-series comparisons with care and always specify which survey and table they are using ABS press release.

Measurement issues that affect interpretation include majority-ownership rules, differences in how receipts are reported, sampling design, and the fact that SBO 2018 was a broader universe that included nonemployer firms. These factors can change the apparent size and composition of race-based owner categories across data releases SBO 2018 tables.

Open questions remain for some users, such as county-level counts and more granular 2023 to 2025 ABS breakdowns. For many practical uses, these gaps mean analysts must combine ABS with other sources to create reliable local or subindustry estimates ABS characteristics tables.

Typical reporting mistakes and how to avoid them

A common error is to cite the ABS employer-firm number as if it were the total number of Black-owned businesses. That misreads scope and can mislead readers about the scale of nonemployer activity. Always state whether the number is for employer firms or all firms ABS characteristics tables.

Another frequent mistake is mixing figures from SBO and ABS without explaining the methodological differences. If you combine numbers from different sources, add a clear note about definitions and timing so readers understand why the totals differ SBO 2018 data and tables.

Quick reporting rules: name the source, name the table or metric, and indicate whether the count covers employer firms only or includes nonemployer firms. Those practices reduce confusion and improve transparency in coverage.

Practical steps and examples: finding local and sector counts

Start with the Census ABS Characteristics of Business Owners tables for owner race and employer status. Use the ABS table indexes to select the table for employer firms by owner race for the most recent year and the industry breakdown you need ABS characteristics tables.

Combine ABS employer tables with SBA state profiles to create a state-level snapshot. For example, pull employer counts by owner race from ABS and compare the receipts and firm size indicators in the SBA profile for that state to add context on scale and local concentration. See the American Prosperity section for policy context. American Prosperity

For finance-related context, consult the Federal Reserve’s Small Business Credit Survey Employer report for findings by owner race and firm size. It is useful for understanding credit access patterns in addition to raw counts Federal Reserve Small Business Credit Survey.

Example query to copy: search the ABS site for “Characteristics of Business Owners 2022 employer firms by owner race” to find the exact table name and downloadable files. That exact table will show employer counts by race and industry for 2022. Contact us via the contact page for questions. Contact

Wrap-up: what we can reasonably say and next sources to check

Key takeaways: ABS 2022 reports about 194,585 Black or African American-owned employer firms in 2022, and SBO 2018 counted roughly 2.6 million Black-owned firms when nonemployer businesses are included. These two headline facts frame most reporting about counts for Black entrepreneurs in America ABS characteristics tables. See the Census 2024 press release for a related release New Data on Minority-Owned, Veteran-Owned and Women …

Because ABS and SBO measure different universes and use different methods, cautious wording is required when comparing totals or making time-series claims. For updates and more granular breakdowns, check the ABS tables, the SBO archive, Kauffman Index reports, SBA state profiles, and the Fed Small Business Credit Survey for complementary context Kauffman Index reports.

Use the primary tables, name the specific metric you are citing, and avoid treating an employer-firm count as a full tally of all Black-owned businesses. That approach will keep reporting accurate and useful for local readers.