Title: Black-Owned Public Companies
Headings: Black-Owned Public Companies
Black-Owned Public Companies
Companies that went public and how they're doing
Public vs. Private
Key Takeaways
What Makes a Business Black-Owned?
Particular Challenges Facing Black-Owned Businesses
Capital
Connections
Cash Flow
Publicly Traded Black-Owned Businesses
RLJ Lodging Trust
Urban One
Ping Identity Holding
Global Blood Therapeutics
Carver Bancorp
Broadway Financial Corp.
Axsome Therapeutics
American Shared Hospital Services
The Bottom Line
Directories of Black-Owned Businesses
Article Sources

Content: Particular Challenges Facing Black-Owned Businesses
In 1992, there were 621,912 Black-owned businesses in the U.S. 14 ﻿ By 2012, that number rose to 2.58 million, before decreasing to over 1.08 million in 2020 (pre-pandemic). 15 ﻿ 16 ﻿ Periods of ups and downs are common to all businesses. However, Black entrepreneurs continue to encounter unique obstacles that make it difficult to reach the same level of success as many of their competitors, such as a limited access to startup capital, fewer useful connections, and operating in lower-revenue industries. 17 ﻿
Capital
Approximately 44% of Black business owners rely on cash to fund their business, compared to 37% for the average small business owner. 18 ﻿ Cash is a riskier means of financing a business, as it dips into funds also needed for essential items and paying bills, compared to a commercial loan, which allows business owners to retain much of their liquid assets. But getting access to loans isn't easy. In 2017, banks were twice as likely to provide business loans to White entrepreneurs than their Black counterparts. Conversely, they were also three times as likely to follow up with White applicants than with more qualified Black business owners. 19 ﻿ In 2014, 28.4% of Black entrepreneurs found that their profits were negatively impacted by their access to capital, while 22.6% were themselves negatively impacted by the actual cost of capital. 20 ﻿
As reported by The Business Journals, since peaking prior to the 2008 financial crisis, the annual number of loans to Black-owned businesses through the U.S. Small Business Administration's 7 (a) program decreased by 84%, compared to a 53% decline in 7 (a) loans awarded overall.