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October 31, 2023

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Learn about states that are fertile ground for Black-run businesses

In its latest data report, Merchant Maverick, a company that provides reviews of small business products and services and develops data-driven reports pertaining to the small business industry, ranked all 50 states by how well they provide the best environment for Black businesses to thrive. The top ten states:

1.     Maryland

2.     Tennessee

3.     Nevada

4.     Virginia

5.     Georgia

6.     Louisiana

7.     Indiana

8.     Texas

9.     North Carolina

10. Florida

Complete ranking of all 50 states, in table format:

https://datawrapper.dwcdn.net/N4mKt/2/

Link to the data report:

https://www.merchantmaverick.com/2023-best-states-for-black-entrepreneurs/

Merchant Maverick collected data from seven different metrics for each state, including Black-owned employer businesses per capita, percent of the workforce employed by Black-owned businesses, average annual payroll of Black-owned businesses, and average annual income of Black business owners. Cost-of-living, unemployment rate, and state income rate were also taken into consideration.

The metrics were collected from multiple sources, including the U.S. Census Bureau Business Survey, the U.S. Census Bureau's American Community Survey, the Tax Foundation, and the U.S. Bureau of Labor Statistics.

For each metric, states were given a score out of 100 based on each state’s rank, with the best-ranked state scoring 100 and the worst-ranked state scoring 0. These individual metric scores were then multiplied by specific weights to achieve an overall score for each state.

A few key takeaways:

The Mid-Atlantic region remains a hotspot for Black entrepreneurs, with Maryland, Virginia, and North Carolina making strong showings at ranks 1, 4, and 9.

The Mid-Atlantic and Southern U.S. regions are solidifying their status as prime locations for Black business owners, with Gulf Coast states like Louisiana and Florida making notable strides in fostering Black entrepreneurship.

The South remains a fertile ground for Black-run businesses.

Northern states (with the exceptions of Maryland and Indiana) generally underperformed, regardless of the size of their local Black populations.

More about Merchant Maverick:

Merchant Maverick publishes expert-based editorial reviews of small business services, including point-of-sale systems, booking and scheduling apps, credit card processing services, business credit cards, finance and accounting software, and e-commerce solutions.

Merchant Maverick’s staff analyze and test products to develop unbiased and in-depth long-form reviews backed by its own research. Merchant Maverick takes a journalistic and transparent approach in its reviews by disclosing its scoring system and vendor information.

Merchant Maverick also develops informative content pertaining to the overall small business industry, its researchers produce data-driven reports affecting both consumers and business owners.