Augusta’s Black-Owned Businesses

February is Black History Month, and Augusta has made it in the top 10 cities with the Most Black-Owned Businesses. This is a great achievement, especially when you consider how many cities were studied.

Research

LendingTree.com conducted a study and in Augusta, 5.9 percent of the business are Black-owned.  While that number may not seem very high, it puts Augusta between cities like St. Louis, Missouri (6 percent) and Baltimore, Maryland (5.4 percent).

The city with the highest percentage of Black-owned businesses is just a couple of hours away from Augusta, in Fayetteville, North Carolina.  Fayetteville has 11.2 percent Black-owned businesses.  The LendingTree report says, “Within the metro, Black people make up 33% of the population — seventh-highest among the 50 metros. The metro’s percentage of Black-owned businesses is closest to parity with the percentage of Black Americans in the U.S. at 12.8%.”

The study looked at the 50 metros with the most Black-owned businesses and compared those numbers with the amount of total businesses to find the percentages.

Some findings from this research:

• Surpringingly, Black-owned businesses are more likely to be within health care, social assistance, transportation and warehousing industries.
  • “Compared to national averages, Black-owned businesses are more likely to be within the health care and social assistance and transportation and warehousing industries. These two industries represent 36% of Black-owned businesses. Nationally, only about 14.7% of businesses — regardless of race — are in one of those two industries.”
• Not such a surprise: Black-owned businesses are far underrepresented compared to the population size of the country.
  • “Although Black people account for 12.8% of the total U.S. population, only 2.4% of businesses are Black-owned,” the study said. “This shows that Black-owned businesses are underrepresented relative to their share of the U.S. population.”
• The study found most cities with the lowest percentages of Black-owned businesses were also among the cities with the lowest percentage of Black population.
  • “The 10 metros with the lowest percentage of Black-owned businesses are all below 2%. And they aren’t concentrated in a particular geographic region, ranging from Pittsburgh to San Diego to Seattle to Milwaukee.”

Here are the top cities with the highest percentage of Black-owned businesses in the country:

• 1. Fayetteville, North Carolina

  5,210 businesses, 585 Black-owned businesses, 11.2%

  Population: 33% Black

• 2. Washington, D.C.

  111,872 businesses, 8,649 Black-owned businesses, 7.7%

  Population: 25% Black

• 3. Richmond, Virginia (Tie)

  25,617 businesses, 1,721 Black-owned businesses, 6.7%

  Population: 30% Black

• 3. Atlanta, Georgia (Tie)

  113,110 businesses, 7,539 Black-owned businesses, 6.7%

  Population: 35% Black

• 5. Memphis, Tennessee

  17,132 businesses, 1,123 Black-owned businesses, 6.6%

  Population: 48% Black

• 6. St. Louis, Missouri

  51,852 businesses, 3,112 Black-owned businesses, 6.0%

  Population: 18% Black

• 7. Augusta, Georgia

  8,197 businesses, 480 Black-owned businesses, 5.9%

  Population: 36% Black

• 8. Baltimore, Maryland

  51,461 businesses, 2,755 Black-owned businesses, 5.4%

  Population: 30% Black

• 9. Jackson, Mississippi

  8,889 businesses, 446 Black-owned businesses, 5.0%

  Population: 31% Black

• 10. Virginia Beach, Virginia

  26,741 businesses, 1,260 Black-owned businesses, 4.7%

  Population: 31% Black

• Other Cities of Note

  12 – Columbia, SC

  20 – Greenville, SC

• Tips To Start A Minority-Owned Business

  Below are some tips courtesy of LendingTree.com.

• Write A Business Plan

  A strong business plan is the first step in starting a business because it outlines the good or service you plan to sell and the customers you want to serve. A business plan also provides market analysis, financial projections and staffing needs.

• Decide On A Business Entity

  A business entity is your company’s legal structure. Depending on which form you select, the decision will affect how you file taxes, the degree to which you’re personally liable for your business debts and whether you can sell stock in the company.

• Keep Clear Records

  Once your business is in operation and legally incorporated, you’ll need to be diligent about keeping clear and consistent records. This will include a balance sheet tracking assets and liabilities, cash flow analysis and reports of accounts payable and accounts receivable. Not only will these reports help you monitor your business’s profitability, but they may also be requirements to apply for a small business loan.

• Build Strong Business Credit

  When you start a business, lenders will pay more attention to your personal credit score, but you’ll also want to build a strong business credit score over time. Similar to a personal credit score, a business credit score is a number that represents a business’s creditworthiness. To build yours, use your business’ employer identification number (EIN) or Data Universal Numbering System (DUNS) number to open a credit account with a vendor and pay your invoices in full when due.

• Qualify As A Minority-Owned Business With The Small Business Administration (SBA)

  Qualifying or certification as a minority-owned business opens opportunities to participate in the SBA’s 8(a) Business Development Program, which offers training, mentorship and the ability to compete for federal contracts. To qualify, you’ll need to be a for-profit business, meet the SBA’s size standards and income standards and be at least 51% owned and controlled by socially and economically disadvantaged U.S. citizens. You’ll apply at certify.sba.gov.

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