Blacktech Week’s 2017 List of Best Cities for Black Owned Businesses

Using the same methodology and, for the most part, the same databases, Blacktech Week has taken a new look at those metropolitan areas, to see whether the same level of attractiveness for black entrepreneurs still holds. We also looked at how those same cities ranked on Kauffman Foundation’s 2017 Index for Startup Activity, to showcase how black entrepreneurs actually fare in cities ranked on the Kauffman list The ranking is based on a total of 7 metrics measuring the economic environment and the success of black-owned businesses in each metropolitan area.

Results show that Southeastern states have a higher concentration of black businesses, with Georgia, Louisiana and Alabama each having two metropolitan areas among the top ten areas with higher percentages of black businesses in relation to the total businesses.

How different is the 2017 top ten ranking in relation to the ranking of 2015? Not much, the ten top metropolitan areas remained the same, although some changes in rank took place (the most notable change was Atlanta losing the leading spot and Memphis, TN emerging as the new leader).

Best metropolitan areas for black owned companies in 2017:

 

  1. Memphis, Tennessee (2015rank: 3)

Memphis dethroned Atlanta as the best metro area for black owned business. With an average annual revenue almost equal to that of Atlanta, Memphis has a lower unemployment rate (the lowest among the top 10), lower cost of living index, and higher percentage of black owned businesses (2nd nationwide). 

 

  1. Montgomery, Alabama (2015 rank: 2)

Keeping its second ranking, Montgomery has the highest percentage of black businesses nationwide. Among organizations that provide support for black-owned businesses are the Alabama State Black Chamber of Commerce and the Montgomery’s Chamber of Commerce Minority Business Development Task Force

 

  1. Atlanta-Sandy-Springs-Marietta, Georgia (2015 rank: 1)

While no longer holding the #1 spot for the greatest metro area for black businesses, Atlanta remains a powerful enclave for black entrepreneurs. Among the top 10, it has the highest number of businesses per 100 habitants, with almost 10. Black business owners have the support of the Atlanta Metropolitan Black Chamber of Commerce. 

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