Small businesses are an essential part of our community. It goes without saying that the need to support them grows more and more each day. Now attach a pandemic and societal struggles on top of that, and imagine an even greater need for support. This is the sad reality of being a BIPOC small business owner.

Edwards Kirby conducted an analysis and found out the landscape of BIPOC-owned small businesses across the country. The analysis showed which states are thriving and whether there’s still plenty of work to be done overall. These are the four states that are dominating the country in a number of BIPOC-owned small businesses:

CALIFORNIA

With 1.6 million BIPOC-owned small businesses, this state leads the nation. 41.6% of the state’s population identifies as BIPOC. When looking at the percentage of BIPOC-owned small businesses in each state compared to the overall number of small businesses, California comes in third place, with only 39% of the small businesses being BIPOC-owned. This opens a new conversation to be had. While they have the most BIPOC-owned businesses out of every state, the landscape is still fairly white-dominated.

TEXAS

The lone star state has the second-highest number of BIPOC-owned small businesses, with 1.1 million. While they are ahead of California in the percentage of overall small businesses that are BIPOC-owned (39.3%), the same landscape is seen for the two states.

FLORIDA

Just shy of a million, Florida is home to 926,002 BIPOC-owned small businesses. 25.9% of the state’s population identifies as BIPOC. The state still ranks fairly high in terms of the percentage of BIPOC-owned small businesses in the state, coming in at #6 with 34.3% of small businesses in the state being BIPOC-owned.

NEW YORK

Rounding out the top four in New York. The empire state is home to 708,962 BIPOC-owned small businesses. 32.2% of their small businesses overall are BIPOC-owned.

It’s important to note that the number of BIPOC-owned small businesses in these top four states are outliers. The next state in line is Georgia, with 371,524 businesses. That’s nearly half of the amount that’s seen in New York. And while these states do have such high numbers of BIPOC small business ownership, the percentages still tell the tale that there’s still work to be done.

You can view the full analysis here.

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