The rise of Black entrepreneurs is a phenomenon that is reshaping the business landscape. In fact, recent data reveals that Black entrepreneurs outpaced their peers in business openings in 2024, with a 67% increase in new businesses compared to 2019. This surge reflects a broader trend of Black business growth as more individuals seek financial autonomy, control over their schedules, and opportunities to build generational wealth.
However, this entrepreneurial growth has not come without its hurdles. The road to success is often paved with obstacles such as securing financing, dealing with systemic discrimination, and facing resource gaps. Despite these challenges, many Black business owners are not only surviving but thriving. In this article, we’ll explore the driving forces behind this growth, the ongoing barriers Black entrepreneurs face, and the inspiring stories of those who are forging their own paths.
Black Entrepreneurs: Breaking Barriers and Achieving Financial Autonomy
The Rise of Black-Owned Businesses
The 2025 Gusto New Business Formation Report highlights that Black entrepreneurs are not just starting businesses at a rapid rate but are outperforming other groups. According to the report, the number of Black-owned businesses rose by 67% in the last five years—far outpacing AAPI (17%) and Latinx entrepreneurs (25%). While White-owned businesses have seen a decline of 12% during the same period, the Black business boom represents an undeniable shift in the entrepreneurial landscape.
This surge in Black business ownership can be attributed to several factors, but a key driver is the pursuit of financial autonomy. Many Black entrepreneurs are motivated by the opportunity to control their schedules and financial futures, with ownership providing them an avenue for greater independence.
The Financial Challenges Facing Black Entrepreneurs
While the growth in Black entrepreneurship is promising, the journey is not without its challenges. One of the most significant obstacles that Black entrepreneurs face is securing the financing needed to launch and scale their businesses. In fact, almost 90% of new Black business owners reported that they required financing to start their businesses—compared to 75% of White business owners.
Moreover, Black entrepreneurs are often the least likely to receive the full funding they seek. Nearly all Black entrepreneurs use personal resources, such as credit cards or savings, to fund their businesses. This reliance on personal financing can limit their ability to invest in growth, restricting the scale of their ventures. As Nich Tremper, senior economist at Gusto, pointed out, entrepreneurs relying on personal funds are less likely to make significant investments, which can hinder long-term business development.
Despite these financial hurdles, Black entrepreneurs are showing resilience. According to the same report, 70% of new Black entrepreneurs reported being profitable in their first year—higher than the 63% of White entrepreneurs. This indicates that, despite financial challenges, Black-owned businesses are succeeding at higher rates.
Why Are Black Entrepreneurs Taking the Leap?
The Drive for Independence and Wealth Building
There are several reasons why Black entrepreneurs are entering the business world at such high rates. The desire for independence, both in terms of work schedule and financial control, is a primary motivator. Many entrepreneurs, like Carmeanna Eberly, who launched Bonsai & Brew Studio, cite the ability to control their own destiny as a key reason for starting their own business. Eberly, who left a corporate role to create her pop-up events company, wanted the flexibility to build something that aligned with her personal values.
Other entrepreneurs are motivated by a desire to build generational wealth. Many see business ownership as a way to create assets that can be passed down to future generations. In fact, the Gusto report found that 60% of Black entrepreneurs started their businesses with the goal of building wealth. This long-term vision is driving many to not only survive in business but to thrive and create opportunities for future generations.
Entrepreneurship as a Response to the Job Market
A key trend emerging from the report is that Black entrepreneurs are increasingly turning to business ownership as a response to a challenging job market. With hiring slow in many sectors, entrepreneurship is becoming a more attractive option for those who have lost jobs or face limited opportunities. In fact, the report found that 66% of entrepreneurs started their businesses after losing a job or as a side income to supplement existing wages.
This entrepreneurial spirit is not limited to just one gender. In fact, Black women are at the forefront of this growth. Since 2017, the number of Black women entrepreneurs has risen by 71%, making them one of the most powerful driving forces behind the Black business surge.
Inspirational Stories of Black Entrepreneurs
Carmeanna Eberly: A Case Study in Growth
Carmeanna Eberly’s journey with Bonsai & Brew Studio is a testament to the resilience and drive of Black entrepreneurs. After just one year, her business has surpassed expectations, serving over 1,000 customers and generating significant revenue for its venue partners. With ambitious plans to expand into other cities like Indiana and Milwaukee by 2026, Eberly exemplifies the entrepreneurial spirit that is propelling Black business growth.
Rosa Thomas: Creating a Legacy Through Entrepreneurship
Rosa Thomas, the owner of The Savoring Mind, represents another inspiring example of Black entrepreneurship. Launched in 2024, her business offers psychoeducational products aimed at helping others. For Thomas, entrepreneurship is not just about income—it’s about creating security for her family and building a legacy. With plans to expand into full-time digital publishing, Thomas exemplifies how Black entrepreneurs are shifting from traditional careers to business ownership for both financial security and personal fulfillment.
The Future of Black Entrepreneurship
As we look ahead, it’s clear that the landscape of Black entrepreneurship will continue to evolve. Despite ongoing obstacles, such as access to capital and discrimination, the growth rate of Black-owned businesses shows no signs of slowing. The combination of financial independence, wealth-building goals, and a drive for autonomy will keep pushing Black entrepreneurs to break through barriers and redefine the business world.
The key to sustaining this growth lies in addressing the financial challenges head-on. By ensuring better access to funding and resources, we can help Black entrepreneurs thrive and continue their upward trajectory in the coming years.
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Photo credit: EBONY Magazine
