Black Family-Owned Businesses Doubled Since 2019

WASHINGTON - Nov. 18, 2023 - PRLog -- New data has revealed a promising trend for Black Americans, indicating a significant increase in wealth-building assets, including the ownership of businesses and stocks, over the past three years. According to the Federal Reserve's 2022 Survey of Consumer Finances the most substantial rise for Black families can be attributed to entrepreneurship. The number of Black families reporting ownership of a business has doubled, climbing from 4.8% in 2019 to 11% in 2022. Additionally, stock ownership among Black families increased from nearly 34% in 2019 to approximately 39% in 2022, marking the largest gain since 2007. These statistics are both impressive and encouraging for the Black community's economic advancement.

William Michael Cunningham, an economist and owner of Creative Investment Research, emphasizes that Black ownership has experienced a dramatic increase. With many African Americans working remotely, they had more time to consider entrepreneurship as a viable path. According to calculations, the number of Black families reporting business ownership reached a remarkable 1.7 million in 2022, up from 878,000 in 2019. This surge could be attributed to the fact that many Black Americans seized the opportunity to expand side hustle businesses, with some transitioning into full-time occupations. The pandemic afforded African Americans more time to reflect on their lives, including their value within traditional workplaces and their roles within the Black community following the George Floyd murder and ensuing national protests. Such considerations likely inspired many Black individuals to embark on entrepreneurial journeys. Note that business-owning families in 2022 were found to be wealthier than non-business-owning families.

Another positive highlight from the survey is the increase in stock ownership among Black families. Direct ownership of stocks surged significantly between 2019 and 2022, rising from 15% to 21%, according to the Federal Reserve data. This represents the largest change on record. Positive market conditions, with substantial gains over the period, played a role in this increase.

While there is reason for optimism in Black business ownership and stock ownership, we suggest that more work is needed from both public and private sector institutions to effect meaningful change in Black homeownership. However, the latest data from the Federal Reserve indicates a slight improvement in this category.

In summary, the recent data paints a promising picture of economic empowerment within the Black community, with significant growth in family-owned businesses and stock ownership. William Michael Cunningham and Creative Investment Research are among those who believe that these trends are indicative of positive change and offer opportunities for Black Americans to build wealth and financial security.

For more, see: https://www.blackenterprise.com/since-2019-wealth-buildin...