Diversity & Inclusion

DC is the top city in the US for Black entrepreneurs, says a new report

Incfile examined the 100 most populated cities in the US to determine the metric, which named DC as the #1 spot for Black entrepreneurs to start their business.

One of the rooms at I/O Spaces, a coworking facility for founders from the African diaspora in the DC suburb of Silver Spring, Maryland. (Photo by Jeneba Jalloh Ghatt)

If you’re a Black entrepreneur trying to launch an enterprise in the nation’s capital, a new report suggests that you’re definitely in the right place.

Incfile, a Texas-based company that helps startups with official filings, recently released a study that ranked DC as the best city in the US for Black entrepreneurs to start a business. Incfile measured the top cities based on the following criteria: High median income, combined with a low cost of living; high revenue-generation by Black-owned businesses; a high percentage of the population that identifies as Black; and a high level of Black residents responding to the U.S. Census.

“When starting a business, the characteristics of your city can make a big difference in whether or not you’re set up for success,” Incfile CEO Dustin Ray said in a statement to Technical.ly. “Of the top 100 most populated cities in the US, DC came out on top. [It] ranked high for average annual revenue for Black-owned businesses and medium income of residents.”

To determine the best spots to get started, Incfile applied the aforementioned metrics to the country’s 100 most populated cities between June and July of this year. Alongside DC, St. Louis, Missouri; Indianapolis, Indiana; Rochester, New York; Cleveland, Ohio and Charlotte, North Carolina were the top cities for Black entrepreneurs nationwide.

Closer to home, DC had the 11th highest percentage of Black residents at 45.4%. The study found that the residential median income of the district was $69,235, compared to an average annual revenue of $95,230 for Black-owned businesses in the area.

According to Incfile, DC also has the highest rate of Black-owned businesses in the US, although California, Georgia and New York have the highest number of Black women founders. On the flip side, Hialeah, Florida; Laredo, Texas; Spokane, Washington; Reno, Nevada and Irvine, California found themselves labeled the five worst cities for Black entrepreneurs, respectively.

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

DC, meet your 2024 Technical.ly Awards nominees 

What a second Trump administration means for local startup ecosystems

Discuss how AI is impacting media (and the election too)

The metrics and mechanics that get startups funded, according to 5 active investors

Technically Media