If you are a Black entrepreneur, the best city to do business and maximize profit is Washington, DC. Closely followed cities that will ensure the success of Black-owned businesses are St Louis, Indianapolis, Rochester, and Cleveland among others.
The worst cities, however, that Black-owned businesses must look out for when deciding to plant a business are Hialeah, Laredo, Spokane, Reno and Irvine.
The metrics the study looked at to arrive at this conclusion were the cost of living, revenue generation by Black-owned businesses and median income; the city’s Black population and Blacks who are resident in that city.
The researchers did their assessment by analyzing data from the 100 most populous cities between June and July 2022 to determine the best cities for Black-owned businesses.
In a statement released by the research firm on its website, the Chief Executive Officer of IncFile, Dustin Ray, said the location and some metrics are important when you intend to start a business and could make or break the business.
The study also revealed that Washington, D.C. has 45.4 percent of Black residents living in the city with a median residential income of $69,235.
It may have the 11th highest percentage of Black residents, but, Black businesses in Washington, D.C. also generate an average annual revenue of $95,230.
The Chief Executive Officer of IncFile said St. Louis which is the second best city for Black-owned businesses enables entrepreneurs to make more than $100,000 per year.
Indianapolis made it to the list because of the low cost of living and high average revenue for Black-owned businesses though it doesn’t have the Black population others on the list have.
The study also found that California, New York and Georgia have the highest number of Black women founders. Twenty-eight percent of Black entrepreneurs indicated that they are happy with their business.
Thirty-eight percent of Black businesses were found in the health sector and social assistance industries.