The Washington region has the second-highest number of black-owned businesses in the nation, with Prince George’s County leading the way, according to U.S. Census data released Tuesday. But despite the large count of such firms, revenue generated by black business owners in Prince George’s County declined between 1997 and 2002.
The number of black-owned businesses in Prince George’s County grew by nearly 42 percent over the five-year period, a figure on par with the national average of 45 percent. But while revenue for black-owned companies across the nation jumped by about 25 percent, total receipts in Prince George’s County declined by nearly 6 percent.
The decline doesn’t track the whole picture, however, said Kwasi Holman, president and CEO of the Prince George’s County Economic Development Corp. The county has developed “aggressive” programs during the past several years to assist small business owners grow their companies, including a small business initiative program that attracted roughly $17 million in government and private contracts to the county last year.
“We shouldn’t minimize the fact that we’re No. 4 in the nation,” said Holman. “We’re the most affluent majority-minority community in the nation, which means our entrepreneurs have better personal resources to help build their companies.”
The population of Prince George’s County is 70 percent black, and the 28,000 black-owned businesses in the county comprise nearly 41 percent of all the firms in Prince George’s, far surpassing the national percentage of 5.2 percent.
One of the biggest challenges for the region and the nation in coming years will be growing black-owned businesses. In 2002, nearly 92 percent of all black-owned firms in the country were sole proprietorships, with only 91 companies in the nation employing more than 500 people.
“There are a large number of African-Americans making their living” as small-business owners, said Mike Little, chairman of the National Black Chamber of Commerce and a business owner in Prince George’s County. “But the challenge is moving to the next step.”
A closer look
Top metropolitan areas for black-owned businesses:
1. New York-Newark-Bridgeport
2. Washington-Baltimore-N.Va.
3. L.A.-Long Beach-Riverside
4. Atlanta-Sandy Springs-Gainesville
5. Chicago-Naperville-Michigan City
Top counties for black-owned businesses:
1. Cook, Ill. – 54,758
2. Los Angeles – 52,674
3. Kings, N.Y. – 37,499
4. Prince George’s – 28,389
5. Miami-Dade – 28,359
