15 Surprising Stats about Black-owned Business
Statistics are a great way to understand the patterns and behaviours of members of society. Regarding Black-owned businesses, various statistics can be used to shape Black entrepreneurship.
Some statistics are more shocking than others, but each has the potential to create a change and allow for more intentional and conscious spending. For business owners, these statistics put at face value what many have felt during the process of building or establishing businesses. For consumers, these statistics may offer greater insight and understanding into why it matters where you spend your money.
Most Black-owned businesses are classified as small, with 61% having between 1-4 employees.
The success rate for Black entrepreneurs starting a business matches the UK average.
There is a difference in median turnover between Black business owners (£25,000) and White business owners (£35,000).
Black pound day played a massive role in revenue increases in June 2020, with some Black-owned e-commerce businesses seeing a revenue increase of 369%.
Of the six million businesses registered in the UK, minority business made up one-sixth and employed almost 3 million people in 2019-20.
Compared to White and Asian female business owners, there is a higher percentage of Black women business owners.
It is estimated that Black and minority ethnic entrepreneurs contribute between £25-32 billion pounds to the British economy each year but are still more likely to be refused a loan for their business.
The Black British community are estimated to have a spending power that exceeds £300 billion, but only 2% of this is spent on Black-owned businesses.
On average Black founders commit an average of £14,000 to their start-ups.
Almost half of Black founders operate in East London, in the Old Street/ Silicon Roundabout area.
It is not uncommon for Black founders to be serial founders, with many founding 3+ ventures on average.
Black business owners in the small business community remain statistically less likely to access external funding than other founders, raising only 0.2% of total venture capital funding between 2009-2019.
London is one of the most challenging places to thrive as an entrepreneur, with nearly one third of business owners failing to make a profit in 2019.
The UK Black hair industry is approximately worth £88 million, but insufficient investment in and catering towards it is still inadequate.
