welcome to Breaking the plan — a blog series that delves into the unique business challenges and opportunities of underrepresented entrepreneurs and entrepreneurs. Find out how they’ve grown or scaled their businesses, how they’ve explored entrepreneurial ventures within their companies or how they’ve created spin-off problems, and how their stories can inspire and inform your own success.
White-owned businesses receive an average of $18,500 in external equity financing, compared to just $500 for black-owned businesses.
Additionally, it can also be challenging for Black entrepreneurs to find mentorship, resources, and even community with other entrepreneurs with their shared experiences.
Fortunately, there are cities where Black entrepreneurs, past, present and future, thrive and have access to the resources and support they need. Read on to discover five of the best cities for black entrepreneurs.
The best cities for black entrepreneurs
1. Washington, DC
Sometimes called the Chocolate City, Washington DC was the first major black majority city in the United States in 1957.
Its black population has declined since then, but LendingTree ranks it as the second best city for black entrepreneurs, with 8,649 of its 111,872 black-owned businesses with an average income of 95,230 (according to IncFile).
Black entrepreneurs in the city have access to a variety of programs, resources and support, including the Greater Washington DC Black Chamber of Commerce, Black Owned Small Business Expo and the Washington Area Community Investment Fund.
It’s also home to HBCU Howard University, where HubSpot has made significant investments to help students with entrepreneurial interests develop their skills, some of whom may be interested in working for a new business venture.
2. Houston, Texas
Houston, Texas is the birthplace of Beyoncé and Megan Thee Stallion, two famous black women with successful entrepreneurial ventures.
Nearly four thousand of the city’s more than 111,041 businesses are black-owned, but the city makes up for it with its offerings. For example:
The Black Marketing Initiative takes Black entrepreneurs through a program of training, mentoring and networking to help them succeed.
3. Atlanta, Georgia
Dubbed the Black Mecca, Atlanta is home to famous black entrepreneurs like Rick Ross and Cardi B. In a city of 113,110 businesses, 7,539 (6.75%) are black-owned, meaning there is a community of black entrepreneurs that already they live there
Atlanta also has ample resources and opportunities for black business owners, including the Atlanta Black Chambers, the University of Georgia Office of Small Business Development’s Multicultural Business Division, and events like WeBuyBlack that advocate for black-owned businesses and its products.
Morehouse College and Spelman College, two HBCUs, are also in town, so recent business and entrepreneurship graduates eager to learn and make an impact are likely to be open to opportunities for advancement.
4. Charlotte, North Carolina
Charlotte, North Carolina’s largest city, is home to the Mecklenburg Investment Company, the city’s first black-owned and financed building. When it first opened it housed many black businesses, and the area around the building became known as Black Wall Street as business prospered.
With such a rich history of black entrepreneurship, Charlotte is worth considering for entrepreneurs looking to set down roots and grow their businesses – 14,000 black entrepreneurs have already done so.
Organizations like the North Carolina Black Entrepreneurship Council and Black Business Owners of Charlotte offer support, community, advice and representation to those with similar experiences. The city is also home to BLCKTECHLT, a company that helps startups bring their ideas to market, helping with branding, funding, sourcing and mentoring opportunities.
5. Richmond, Virginia
The Jackson Ward neighborhood of Richmond, VA is one of the first Black Wall Street communities. Maggie Lena Walker of Richmond was the first African-American woman to charter a bank and serve as bank president.
This entrepreneurial community is still prevalent and thriving, and LendingTree ranked it third on its list of best cities for black entrepreneurs, with 7% of the city’s businesses black-owned and a survival rate of 79.54% start for the state of Virginia.
Richmond entrepreneurs will also find support and community at the Northern Virginia Black Chamber of Commerce, Virginia Black Business Expo, BLCK Street Conference and the Jackson Ward Collective, which connects Black entrepreneurs with the resources they need to achieve their goals.
Black community support can help Black entrepreneurs thrive
One of the essential things for black entrepreneurs is to have the community support of people with shared experiences. Take stock of what’s most important to you as you start your new venture – every city on this list has a lot to offer and could be the birthplace of your successful business.
