Today’s landscape shows both progress and persistent challenges. Census data reveals that while Black Americans represented about 12% of the population, they owned just 2.4% of American small businesses in 2020. However, data suggests that Black-owned businesses thrive in Southern states. Hinesville, Georgia, leads with 18.2% of companies being Black-owned despite its population only being slightly above 35,000. On the other hand, Atlanta, a larger city with more than 500,000 residents, maintains a strong presence, with 13,766 Black-owned businesses representing 11.3% of all enterprises.
Cities like Memphis, Tennessee, also have a notable presence of Black businesses. The city, which hosts more than 600,000 residents, has a Black population comprising 48.8% of residents, and Black-owned companies comprise 9.3% of all enterprises.
The resurgence of modern Black business districts in these cities is driven by strong entrepreneurial ecosystems supporting emerging and established businesses. From local policies to entrepreneur networks, dedicated efforts are shaping sustainable ecosystems that empower Black entrepreneurs and fuel long-term success.
Building sustainable entrepreneurial ecosystems
Today, this philosophy is embodied in the work of Atlanta’s Dr. Lakeysha Hallmon, founder of The Village Market and author of “No One Is Self-Made: Build Your Village to Flourish in Business and Life.” Hallmon launched The Village Market as a deliberate economic engine for Black-owned businesses. Since 2016, the model has served more than 1,440 businesses in 38 states and four countries, including the Bahamas. It has resulted in $8.8 million in direct sales to Black-owned enterprises and $800,000 in grants.
“The key for all of us is intentionality—whether through funding, mentorship, visibility, or policy changes, we must build ecosystems that not only provide opportunities but also advocate for long-term structural change in how Black businesses are supported and sustained. By working together, we can shift the narrative from survival to sustained success,” Hallmon told Stacker in an email.
Mandy Bowman, founder and CEO of Official Black Wall Street, represents another example of the power of buying and supporting Black entrepreneurs. Bowman created Official Black Wall Street to connect Black businesses with consumers nationwide. Inspired by the history of Tulsa’s Greenwood District, Bowman launched her platform to ensure Black businesses received sustained visibility and consumer support.
The power of social and economic networks
Ryan Wilson is the founder and CEO of The Gathering Spot, a private membership network designed to foster collaboration among Black professionals, entrepreneurs, and creatives. He underscores the importance of community spaces providing social and financial capital to help businesses thrive. “We have to have places where you’re able to connect with the entire ecosystem. So, yes, business owners, but also the accountants, the lawyers, the people that can support your products,” Wilson told Stacker.
Wilson emphasizes that business is ultimately built on relationships, and access to the right networks is often as crucial as access to funding. “At the end of the day, social capital is going to be required in order to facilitate financial capital and then ultimately close the wealth gap. People have to know one another before they do business with one another,” Wilson said.
“Buying Black” has long been a powerful concept and driver of social capital in the fight for economic independence and wealth-building within Black communities. Johnson describes this tradition as “supporting Black-owned enterprises, entrepreneurs, and professionals; investing in our own community; and ownership—equity.” Historically, Black business districts like Greenwood in Tulsa, Sweet Auburn in Atlanta, and Jackson Ward in Richmond were thriving because of “collective economics,” or “economic cooperation” to support Black-owned businesses, ensuring that wealth circulated within Black communities.
And just as in centuries past with Black business districts, educational institutions like historically Black colleges and universities continue to be an economic mobilizer for Black entrepreneurship.
In Atlanta, the Center for Black Entrepreneurship aims to help bridge the wealth gap for Black communities through its programming and funding opportunities that serve Atlanta University Center students—which include Spelman College, Morehouse College, Morehouse School of Medicine, and Clark Atlanta University—and Black business owners. The center, bolstered by $10 million in funding from Bank of America, also provides a research program to find solutions for the unique challenges Black entrepreneurs face.
Challenges in accessing capital
Access to capital remains a significant barrier for Black entrepreneurs. According to the Federal Reserve’s 2022 Small Business Credit Survey, Black-owned firms are twice as likely to be denied business loans as white-owned firms. The Census Bureau’s 2022 Annual Business Survey also found that Black-owned firms were less likely to receive the full financing they sought than white-owned firms. Specifically, fewer than 2 in 5 (38.4%) Black-owned firms received all the funding they applied for, while 3 in 5 (62.3%) white-owned firms experienced the same outcome.
The venture capital landscape reflects similar disparities. In 2023, Black-founded startups in the U.S. received approximately $661 million in venture capital funding, representing just 0.48% of the total $136 billion allocated that year and 1.4% of total U.S. venture funding, TechCrunch reported. This marks a substantial decline from 2021, when Black founders secured nearly $5 billion, according to Crunchbase. The downturn of financing is more pronounced in certain regions. For instance, in Atlanta, Crunchbase reported investments in Black-owned startups dropped from $467 million in 2021 to just $23 million in 2023. However, some VC firms, such as the Atlanta-based Collab Capital, provide access to capital and strategic guidance to Black entrepreneurs and founders.
Broader economic disparities compound the financial challenges faced by Black entrepreneurs. A 2023 Pew Research Center survey found that 3 in 5 (64%) Black adults rate their personal financial situation as only fair or poor, and more than half experience at least one economic worry daily or almost daily. Despite these obstacles, entrepreneurship remains a key aspiration within Black communities; the same survey revealed that 22% of Black adults consider owning a business essential to their personal definition of financial success.
The Black Wall Street mindset and the future
These disparities underscore Black entrepreneurs’ systemic and historical barriers to securing necessary funding for their businesses and achieving financial success.
While the challenges remain significant, today’s Black entrepreneurs are building on their predecessors’ legacy of resilience and innovation, working to close the racial wealth gap one business at a time.
“Black Wall Street clubs have sprung up all across the country,” Johnson said. “They reflect what I call ‘the Black Wall Street mindset,’ the mental framework built on the historical example of the Black trailblazers from Tulsa’s historic Greenwood District who displayed extraordinary vision, determination, and resilience in the face of seemingly insurmountable odds. Leveraging this powerful past, the Black Wall Street mindset says, essentially: ‘They did. I can. I will.'”
Story editing by Carren Jao. Copy editing by Paris Close.
