Black-owned businesses across Ohio are making a bigger impact on the state’s economy than ever before. A new analysis of U.S. Census Bureau data shows these businesses are creating more jobs, paying higher wages, and expanding their economic footprint.
The report, published by the Health Policy Institute of Ohio, found that more than 5,600 Black-owned businesses employed over 64,000 workers in 2023. Even more impressively, their combined annual payroll rose from $1.3 billion in 2017 to $2 billion in 2023. That represents an 82% increase over six years.
Black-Owned Businesses Fuel Ohio’s Economic Growth
The latest findings highlight the growing strength of Black entrepreneurship across Ohio. As more Black-owned businesses expand, they are creating employment opportunities while contributing billions of dollars to the state’s economy.
According to the Health Policy Institute of Ohio, the success of these businesses benefits everyone. The organization said Ohio’s diversity continues to strengthen the state’s economy.
“The data on the economic impact of Black-owned businesses in Ohio demonstrates that the state’s diversity is one of its greatest strengths and that the success of the Black community leads to success for the state overall.”
The report suggests that supporting Black entrepreneurs does more than help individual businesses. It also creates stronger local economies and wider opportunities for workers across the state.
Cincinnati Leads Ohio in Black Business Growth
While growth appeared across several cities, Cincinnati stood out as Ohio’s strongest success story. Data from the Brookings Institution showed the Cincinnati metropolitan area recorded a remarkable 125% increase in Black-owned employer businesses between 2017 and 2023.
Today, Black entrepreneurs own 3.5% of all employer businesses in the Cincinnati region. Meanwhile, Toledo experienced an 85% increase during the same period, while Akron posted a solid 27% gain.
However, the picture was not equally positive everywhere. Dayton and Youngstown both recorded declines in Black-owned employer businesses between 2017 and 2023. Looking only at 2022 to 2023, Cincinnati remained the only major metro area that continued growing year over year, rising another 18%. Other major cities experienced slight declines during that period.
National Growth Shows the Rising Power of Black Entrepreneurship
Ohio’s progress reflects a larger national trend. According to the Brookings Institution’s Black Business Parity Dashboard, the United States had more than 200,000 Black-owned employer businesses in 2023. That marks a 62% increase since 2017.
Together, those businesses generated $249 billion in revenue. They also supported more than 1.8 million jobs while paying nearly $70 billion in wages across the country.
Despite this progress, researchers noted there is still significant room for growth. Black Americans make up 14.4% of the U.S. population. Yet they own only 3.4% of employer businesses nationwide. The figures show important gains, but they also highlight the remaining gap in business ownership.
Challenges Still Face Black-Owned Businesses
Researchers warned that future growth cannot be taken for granted. They pointed to increasing scrutiny of diversity, equity, and inclusion initiatives as one possible obstacle.
The report specifically mentioned the elimination of the Minority Business Development Agency and changes affecting U.S. Small Business Administration contracting programs. Researchers believe these policy changes could slow future progress.
Brookings researchers Andre Perry and Hannah Stephens also emphasized that structural barriers continue to limit growth.
“With numerous structural barriers to growth—such as credit access, intergenerational wealth gaps, and outsized levels of debt—Black-owned businesses will not magically grow without inclusive and intentional policy and investments.”
They added that increasing business ownership among underrepresented groups helps reduce long-standing racial wealth gaps. It also moves business ownership closer to reflecting the country’s population.
Black Entrepreneurs Continue Building Economic Opportunity
The report paints an encouraging picture of Black entrepreneurship in Ohio. Business owners are hiring more workers, increasing payroll, and contributing more to local communities than they did just a few years ago.
Even so, researchers believe continued investment, fair access to capital, and supportive policies will be necessary to maintain this momentum. If those conditions remain in place, Black-owned businesses could play an even greater role in driving economic growth across Ohio and the United States.
