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.-30-