Happy National Black Business Month!
Nationally and here in our region, Black-owned businesses represent an important and growing piece of the economy.
August is National Black Business Month, and REDI Cincinnati is thrilled to recognize the many Black-owned businesses in our region. This month-long celebration was established 20 years ago by John William Templeton, an author and historian, and Frederick E. Jordan Sr, a civil engineer and businessman.
Why do we get so excited about the Black-owned businesses who represent our region? Cincinnati’s thriving economic ecosystem is a product of this region’s diverse representation of entrepreneurial activity, as it’s been proven time and again that a diversity of racial identification, perspective, cultural experience and more lead to a more vibrant region with a wide range of business variety and greater prosperity.
Black-owned businesses are a big part of what makes the Cincinnati region so great for everyone!
On the Rise Nationally
On a national scale, Black- and minority-owned businesses encompass a growing and integral component of the U.S. economic landscape. According to the National Minority Supplier Development Council’s (NMSDC) 2023 Minority Businesses Economic Impact Report, annual minority business enterprise (MBE) revenue for the 2022-23 fiscal year hit $363.6 billion, which is up 15% from the previous year’s annual revenue. (The NMSDC’s ultimate goal is to see $1 trillion in MBE annual revenue by 2030.)
Across the nation, this amounted to the creation of 1 million jobs, up 4.5% from the previous year, with support for 2 million jobs total. The direct total in payroll wages for employees of MBEs was $81.5 billion, amounting to an 8.2% increase for the year; that number rises to $149.6 billion when factoring in downstream suppliers and employment impact on communities. And in terms of taxes, MBEs generated some $57.1 billion in taxes in 2022-23, which is an increase of 14.2% over the previous period.
Top industries for MBEs in 2023 were manufacturing; wholesale trade; professional, scientific and technical services; construction; and administrative and support and waste management and remediation services. In all, the report estimates that the total economic impact of MBEs, including indirect and induced funds, was $548.2 billion in 2023.
The NMSDC report did point out a need for more support nationally for Black minority women business enterprises, a segment that shows a disheartening lack of parity. But overall the report highlighted Black businesses’ strides to overcoming historic disparities, with 2023 showcasing double-digit revenue increases to the tune of a 12% increase, up to $66.5 billion.
A Local Love Story for Black-Owned Businesses
Black-owned business is big business. A recent study conducted by UC’s Alpaugh Family Economics Center was announced in July 2024 by the Greater Cincinnati and Northern Kentucky African American Chamber of Commerce (AACC). Going beyond just citing an assumed impact of Black-owned businesses on our regional economy, the report studied and gathered hard data that proves how significant this segment of economic activity is for our regional economy.
The center’s report found that, in 2023, Black-owned businesses in the Greater Cincinnati region (which, for this report, includes Southwest Ohio and Northern Kentucky) generated about $1.5 billion in direct sales and nearly $1.4 billion in indirect sales, for a total of more than $2.8 billion in total sales.
These earnings translated to big employment wins for our region, too. In terms of direct employment opportunities, 9,024 people went to work for a Black-owned business in 2023. In all, earnings from these positions totalled $341.2 million in locally earned dollars for the year. Beyond these direct wages, though, indirect sales supported an additional 7,448 jobs in 2023, for payroll earnings totaling $293.8 million. All told, Black-owned businesses directly and indirectly supported 16,472 jobs in 2023, providing $635.1 million in total employee earnings.
Moreover, the report found that earnings and sales tax revenue generated by these businesses totaled $34.3 million in tax dollars for state and local jurisdictions.
In our region, as well as nationally, the professional, scientific, and technical services industry was one of the top industries for Black-owned business activity. The retail trade and other services industries rounded out the top three in Greater Cincinnati; this trinity of industries represented about 47.4% of all industry activity amongst regional Black-owned businesses in 2023.
So, happy National Black Business Month indeed! This important component of both our regional and national prosperity is integral to our local economy’s long-term success, and REDI Cincinnati is proud to partner with a number minority-owned businesses as we promote and support Cincinnati’s robust economy. If you’re a member of a minority population with a business idea but find yourself struggling to connect with necessary resources, don’t hesitate to get in touch today. Our organization is committed to helping Black and minority business owners find success in Greater Cincinnati’s regional economy!
Interested in learning more about D&I initiatives and programs at REDI Cincinnati? Please visit our Growth for all page.
About REDI Cincinnati
The Regional Economic Development Initiative (REDI) Cincinnati is the first point-of-contact for companies locating or growing in the 15-county region at the heart of southwest Ohio, northern Kentucky, and southeast Indiana. REDI Cincinnati is supported by top business leaders and community partners and staffed by a team of economic development experts who are uniting the Cincinnati region to compete globally.
The future is bright, and we’re building it, right now. Join us at REDICincinnati.com.