BIPOC-Owned Small Businesses Most Prévalent in the South, According to New Analysis

A Recent Study Creates Snapshot of Minority Business Ownership in Pre-Covid U.S.

The COVID-19 pandemic reminded us of the importance of supporting small, minority-owned businesses, but this is easier said than done in many states across the U.S. Across the country, minority small business ownership is as varied in count as we can assume it is in business type and services. According to this study, total numbers of BIPOC-owned small businesses in every state ranged from the millions in states like Texas, New York, California, and Florida, to the low thousands in Vermont and North Dakota.

And while the study attributes much of these differences to the size of the state populations, as well as the demographics, tallying businesses on a statewide basis may not provide the full story. 

Despite structural barriers in southern states for BIPOC entrepreneurs, they have a higher percentage of minority-owned businesses than any other region. While states like Texas (39.3%), Florida (34.3%), Georgia (33.8%), and Mississippi (28.5%) were among the top 10 states with high percentages of BIPOC-owned small businesses, midwestern representation was limited to Illinois, at 26%, while New England was left off the list entirely. 

In contrast to the states where minority entrepreneurship constitutes a large percentage of overall small business ownership, those with lower rates cover much of America’s heartland and northernmost areas. Maine and Vermont, with only 6.4% of each state’s population identifying as nonwhite, ranked first and second among the states with the lowest percentages of BIPOC-owned small businesses (at 2.9% and 3%, respectively).

Still, we don’t yet know the full impact of the Covid-19 pandemic on small businesses across the United States—the small business landscape may have shifted. And with Covid-19 variants on the rise, small businesses may face closures yet again. You can learn more about the state of minority small business ownership here.

TIME BUSINESS NEWS

TBN Editor

Time Business News Editor Team