For the third consecutive year, Atlanta, GA, is the leading hub for Black-owned businesses in the United States.

According to a LendingTree analysis, the city boasts the highest percentage of Black-owned businesses in the nation, with 11.3% of all businesses in Atlanta — or 13,766 — being Black-owned. The analysis used the 2023 U.S. Census Bureau Annual Business Survey to rank metropolitan areas by the percentage of Black-owned businesses in 2022.

Windsor Jones, co-owner of Sweet Auburn Bread Company in the historic Sweet Auburn district, told Atlanta News First that he was not surprised by LendingTree’s findings.

“It’s always been the Black mecca for excellence and resilience and entrepreneurship,” Jones told the outlet, describing Atlanta as the best city for Black entrepreneurs to thrive.

As for nationwide trends, the LendingTree report revealed that Black-owned businesses in the U.S. grew by 22.2% year-over-year, accounting for 3.3% of all enterprises in 2022, up from 2.7% in 2021.

Women also lead a higher percentage of Black-owned businesses, with 39.1% of Black-owned businesses across the U.S. run by women compared to 22.3% of all companies.

Matt Schulz, LendingTree’s chief credit analyst, said in the report that the current economic climate may influence the rise of Black-owned businesses.

“There’s no question that stubborn inflation and today’s high prices are spurring more people to seek new ways to supplement their income,” he said. “As the saying goes, necessity is the mother of invention, and it has never been easier or cheaper to start a small business than today, so it shouldn’t be a surprise that more Americans are going that route.”

A variety of Black-owned businesses contribute to Atlanta’s ranking. Among them is Head’s Plumbing, a third-generation family-owned plumbing company that has been operating for over 40 years, as AFROTECH™ previously reported.

Another notable business is Flowing with Blessings Inc., a nonprofit founded in February 2022 that provides essential services, such as showers and clean clothing, to Atlanta’s homeless population.

In contrast, Salt Lake City, UT, has the nation’s lowest rate of Black-owned businesses, with only 0.8% — the only metropolitan area that has below 1.0%, per LendingTree. At 1.6%, it also stands out as the only metro area with less than 2.0% of its population identifying as Black.

Despite continued growth, LendingTree researchers identified two primary obstacles for Black-owned businesses — achieving success within the first year and accessing startup business loans. That’s why they encourage Black business owners to reach out to their networks for support in spreading the word as well as seek out funding opportunities and training tools online from organizations and other resources that want to help.

Schulz believes that young professionals, specifically Millennials and Gen Zers, have embraced entrepreneurship much more than older generations — which may be driving high startup rates.

He noted that, “Millennials and Gen Zers simply aren’t willing to center their whole financial lives around one paycheck they know could go away in a moment” after experiencing the Great Recession in the early 2000s and the pandemic or watching their parents struggle.

“They’re diving into side hustles and other opportunities to diversify their income, and that’s good. And they’re not only starting their own businesses. They’re also supporting others who do the same, and that’s a big deal, too,” he added.