As Black Business Month is celebrated this August, it is important to take a closer look at the realities and achievements of Black-owned enterprises in today’s economy. 2024 data from the U.S. Census Bureau and the Federal Reserve provide a clear picture of the scale and economic footprint of Black-owned enterprises, and their continued challenges with profitability and access to capital. This newsletter highlights the most up-to-date statistics available, offering a broad view of the landscape for Black-owned enterprises. THE CURRENT LANDSCAPE OF BLACK-OWNED BUSINESSES According to the Census Bureau’s December 19, 2024 release of the Annual Business Survey covering 2022, the United States had an estimated 194,585 Black- or African American-owned employer firms. Those companies generated about $211.8 billion in annual receipts, employed roughly 1.6 million workers, and paid approximately $61.2 billion in annual payroll. A quarter of Black-owned employer firms operated in Health Care and Social Assistance, underscoring the sector’s central role in Black business formation and job creation. Most Black-owned businesses operate without employees. The Census Bureau’s Nonemployer Statistics by Demographics (released August 8, 2024, covering 2021) reported approximately 4,128,432 Black-owned nonemployer businesses. These businesses accounted for about 14.5% of all nonemployer businesses nationwide and generated an estimated $109.8 billion in receipts. This illustrates the breadth of Black entrepreneurship across sole proprietorships and microbusinesses, which often serve as pipelines for future employer firms. PERFORMANCE AND EXPECTATIONS The Federal Reserve Banks’ 2024 publication Firms in Focus: Chartbook on Firms by Race and Ethnicity of Ownership (based on the 2023 Small Business Credit Survey of small business employer firms) provides detail on performance and outlook. At the end of 2022, only 28% of surveyed Black-owned employer firms reported operating at a profit, compared with 50% of white-owned employer firms. Even with those challenges, expectations remained optimistic: going into 2024, 77% of Black-owned employer firms anticipated revenue growth over the next 12 months, and 58% anticipated expanding headcount. These optimistic expectations highlight the resilience and forward-looking confidence of Black business owners. CHALLENGES IN ACCESS TO CAPITAL Financing remains a binding constraint. Among credit applicants in the 2023 survey year, as summarized in the Federal Reserve Banks’ 2024 chartbook, only 32% of Black-owned employer firms were fully approved for the financing they sought, compared with 56% of white-owned firms. Denial rates showed a mirror image: 41% of Black-owned applicants were denied outright, compared with 18% of white-owned applicants. These disparities continue to shape growth trajectories of black-owned enterprises by limiting the ability to invest in inventory, equipment, and payroll when demand is rising. CONCLUSION Taken together, the 2024 releases point to a Black-owned business ecosystem that is broad in participation, increasingly present in employment-creating firms, and concentrated in service sectors like health care, while still contending with profitability headwinds and sharply uneven access to credit. For organizations looking to support Black businesses, the message is clear: pair demand-side opportunity with capital readiness, credit access, and working-capital solutions, so that promising firms can translate strong pipelines into durable job growth. The SJS Law Firm, PLLC remains committed to supporting and advising entrepreneurs as they navigate these challenges and opportunities. For a complimentary consultation, please contact us at (202) 505-5309. Source Notes: U.S. Census Bureau, Annual Business Survey , reference year 2022 (released Dec. 19, 2024); U.S. Census Bureau, Nonemployer Statistics by Demographics , reference year 2021 (released Aug. 8, 2024); Federal Reserve Banks, Firms in Focus: Chartbook on Firms by Race and Ethnicity of Ownership (based on the 2023 Small Business Credit Survey), 2024.

Contracts are not just legal formalities; they are foundational tools that clarify expectations, outline responsibilities, and provide recourse if an issue occurs. For small businesses, getting the details right can mean the difference between a smooth engagement and an expensive dispute down the line. Therefore, contracts should be drafted with careful consideration and should not be reused without revision. Whether you are working with clients, independent contractors or vendors, here are some tips to make sure your contracts work for you and not against you: Be Precise About Scope, Deliverables, and Deadlines: Each contract should clearly define what work is being performed, what is included and excluded, when it is due, and how it will be delivered. Ambiguity around scope, deliverables, and deadlines can lead to disputes that will not only delay projects but also jeopardize business relationships because it erodes trust, creates friction over perceived obligations and can make future engagements less likely. Being detailed makes it easier to hold both sides accountable. Protect your Intellectual Property and Confidential Information: If your business involves creative work, proprietary materials, or client data, you should include provisions addressing ownership and confidentiality obligations. The contract should clearly state who owns the final work product and the underlying materials used to make the final work product and whether your business can use the final work product in its portfolio. In determining ownership of intellectual property, it is imperative that you know both industry standards and your own preferences to strike a balance that protects your rights and meets the expectations of clients. Include a Fair and Clear Termination Clause: A strong contract includes an exit plan. Contracts should state the conditions for either party’s termination, especially if there is a cure provision, how much notice is required, and what happens to any payments, works in progress, or confidential information upon termination. Avoid One-Size-Fits-All Contracts and Seek Legal Opinion: Using the same contracts across different clients can expose you to unnecessary risk if the terms are not tailored to the specific relationship or work. Make sure each contract reflects your actual agreement, including key business terms, deliverables, and payment structures. Pay close attention to potentially risky clauses like indemnity provisions or overly broad non-competes. If you are unsure about certain language and potential implications, having a legal professional review the document can help identify red flags and ensure you are fully protected. The SJS Law Firm, PLLC can help your small business draft effective contracts. For a complimentary consultation, please contact us at (202) 505-5309.