President Biden’s Presidency Sees Record Numbers of New Black Entrepreneurs
Data shows significant growth in Black-owned businesses under the Biden administration
In a recent advertisement released during Black History Month, President Joe Biden highlighted the progress made by Black Americans during his presidency. One of the claims made in the ad was that there have been “record numbers of new Black entrepreneurs” under his administration. This statement has been supported by data from the U.S. Census Bureau and the Federal Reserve Board, which show a significant increase in Black-owned businesses in recent years. Independent analyses also suggest that some of the policies implemented by the Biden administration have played a role in fostering this growth.
Growth of Black-owned businesses
According to an analysis by the Brookings Institution, the number of Black-owned businesses with more than one employee has been steadily increasing since 2017. The most significant increase occurred between 2020 and 2021, with the number rising from approximately 140,000 to over 161,000. This represents a 14.3% increase, the largest percentage increase since 2017. The data from the U.S. Census Bureau’s Annual Business Survey supports the claim of “record numbers” of new Black entrepreneurs under the Biden administration.
Federal Reserve data on Black business ownership
The Federal Reserve’s Survey of Consumer Finances, conducted every three years, provides additional evidence of the growth in Black business ownership. The 2022 survey found that 11% of Black households held equity in a business, a significant increase from the previous record of 6.6% in 2016. Black-owned businesses also outpaced businesses owned by other racial and ethnic groups in several categories, including employee growth, revenue increase, and payroll expansion. These findings further support the claim made in the Biden ad.
Biden administration policies and their impact
Independent analyses suggest that some of the policies implemented by the Biden administration have contributed to the growth of Black-owned businesses. One such policy involved changes made to the Paycheck Protection Program (PPP) during the pandemic. The program aimed to provide loans to businesses to help them retain employees during public health restrictions. An evaluation of the program in August 2020 found that minority-owned businesses faced challenges in securing loans. However, changes made by the Biden administration, such as expanding lender participation and targeting minority businesses for lending, helped address these disparities. A study conducted by the University of California, Santa Cruz, also found that minority business owners, including Black entrepreneurs, saw gains in securing PPP loans.
Conclusion: The claim made in President Biden’s ad that there have been “record numbers of new Black entrepreneurs” under his administration is supported by data from the U.S. Census Bureau and the Federal Reserve Board. The growth of Black-owned businesses has been evident since 2017, with a significant increase observed between 2020 and 2021. Independent analyses suggest that policies implemented by the Biden administration, such as changes to the Paycheck Protection Program, have played a role in fostering this growth. However, despite these gains, Black business ownership still lags behind that of white Americans, indicating that there is still work to be done to achieve equity.