6 Economic Wins America Is Missing By Underinvesting In Black Entrepreneurs Across Major Cities: This Juneteenth & Beyond

Forbes

5 hours ago

As cities take on the challenge of reducing inequality, building stronger communities, driving ... More economic growth, and securing their future, closing the Black business gap should be a core part of the strategy.
By investing in Black entrepreneurs, America doesn't just close racial equity gaps, it can generate massive economic opportunity across U.S. cities for residents. Juneteenth marks a moment to reflect not just on emancipation, but on the long-standing gaps in access to economic freedom and opportunity. Today, those barriers are clearly visible in how Black-owned businesses remain underfunded, underrepresented, blocked, and disconnected from the full promise of prosperity and the American dream despite contributing for generations to every engine that makes the nation run, from innovation to infrastructure, culture (including widely used language like AAVE) to commerce.
According to a 2024 analysis and research by the Brookings Institution, if Black-owned businesses reached parity with the Black population in each U.S. metro area, the national economy would see millions of new jobs, billions in additional wages, and trillions in potential revenue. The data published is a compelling call to action for smarter economic policy: achieving equity in business ownership isn't just moral; it's a strategy for widespread growth.
If local governments prioritized data-driven strategies to increase equity by expanding programs and resources that help more Black residents within their current populations become business owners, cities would gain more jobs, higher wages, stronger local economies, and billions in new revenue.
Here are six clear economic wins the U.S. is missing by failing to equitably invest in Black entrepreneurship:
1. Job Creation at a Transformational Scale
Cities like Detroit, New York, and Jackson show the power of equitable investment. In Detroit, for example, parity in Black-owned businesses could yield an estimated 466,000+ new jobs. In Jackson, the figure tops 388,000 new jobs. Across all major metros, Black businesses consistently show high job-generation potential when properly resourced.
2. Billions in Additional Wages for Local Economies
If Black businesses in Los Angeles alone reached population parity, they would contribute $7.1 billion in new wages. In Memphis, parity could yield $4 billion; New York would gain $22.2 billion. That's real money reinvested into communities, fueling everything from better housing to healthcare, education, neighborhood development, and local business ecosystems that residents can enjoy.
3. Increased Revenue Power and Economic Multiplier Effects
Across cities, many Black businesses often operate with fewer resources and are under-capitalized, yet still manage to outperform expectations and deliver real impact to the communities they serve. In Boston, parity could bring $12.9 billion in additional revenue. In Miami, $30.4 billion.
Nationwide, the numbers are even more staggering. Closing the business equity gap would have an unprecedented and miraculous ripple effect that boosts GDP, generates tax revenue, and strengthens supply chains. Benefits can also extend beyond our borders, strengthening trade partnerships and indirectly supporting economies in other countries interconnected through global markets.
4. Smart Use of Economic Strengths & Talent in Emerging Metro Areas
Places like Columbia, SC, and Virginia Beach, VA, with high Black populations but low representation in business ownership, are missing out. Columbia could gain 138,000+ jobs and over $13 billion in revenue. Virginia Beach would see $6.2 billion in additional revenue. That's untapped potential sitting in plain sight.
5. Reversing Generational Economic Disparities
Black entrepreneurs often face systemic barriers to capital, credit, and mentorship, a direct legacy of discriminatory policy. Equitable investment in these businesses and the supporting policies still need to be built on frameworks that address long-standing structural barriers limiting American economic growth, along with tools to measure progress effectively. To date, such comprehensive frameworks and measurement tools have been largely absent, perpetuating missed opportunities, economic instability, and slowing progress toward equity.
6. Shared Prosperity for the Entire Nation
Closing the Black business gap through smarter, tailored, and more specific economic policies doesn't just benefit Black communities. Every dollar in revenue, wages, or jobs created has a multiplier effect and is a net positive for both the local and American economy. Equitable entrepreneurship strengthens the middle class and brings more innovation, diversity, jobs, and educational opportunities to the industries and communities that need them most.
WASHINGTON, DC - JUNE 20: A Juneteenth flag is raised during the Celebration of Juneteenth at the ... More African American Civil War Memorial event on Monday June 20, 2022 in Washington, DC. (Photo by Matt McClain/The Washington Post via Getty Images)
This Juneteenth, the social and economic case for equity remains undeniable. It's time to move beyond performative posts and cultural awareness toward meaningful action by advocating for policies and practices that close the wealth gap and drive economic revitalization with far-reaching benefits for all communities. Investing in Black entrepreneurs is not a niche cause; it is a smart, scalable economic strategy.
As cities seek to address inequality, raise quality of life, stimulate growth, and future-proof their economies, closing the Black business gap must be central. This requires understanding the history of multi-generational Black America and building solutions that acknowledge and address these realities through new systems and processes.
The data is clear, and the opportunity is real. This holiday and beyond, we have the chance to come together and build a future where equity and morality open the door to new opportunities.