According to a recent study, Black-owned businesses in Southwest Ohio and Northern Kentucky contributed over $2.8 billion to the region’s economy in 2023.
The University of Cincinnati Alpaugh Family Economics Center for the Greater Cincinnati and the Greater Cincinnati and Northern Kentucky African American Chamber of Commerce (AACC) partnered to produce a report that analyzed data from a database of 1,417 Black-owned businesses across eight counties.
According to the report, Black-owned businesses played a significant role in generating $1.5 billion in direct sales and providing employment to 9,024 individuals in 2023. Additionally, these businesses also supported $1.4 billion in indirect sales, which further contributed to the creation of 7,448 jobs. These findings highlight the crucial role that Black-owned businesses play in driving economic growth and creating employment opportunities.
Eric H. Kearney, President of AACC, believes that the headline grabbing attention is the $2.8 billion mark. He expresses his desire to see Black-owned businesses expand and take advantage of the opportunities and growth that Ohio has to offer.
According to Kearney, who is a lobbyist and a former Ohio Senator, although Black-owned businesses have shown growth over the years, it hasn’t been at the rate he had hoped for.
According to him, the figure of $2.8 billion only makes up around 2% of the gross domestic product of Greater Cincinnati. Hence, it is not a significant amount. He further added that comparing this number to the percentage of the Black population, which is around 12 to 14%, would not be an appropriate comparison.
Black entrepreneurs have made significant contributions to the Cincinnati area’s economy, with their businesses generating a remarkable $2.8 billion. This achievement highlights the growing impact of black-owned businesses in the region and their invaluable role in driving economic growth. The success of these businesses is a testament to the hard work and dedication of black entrepreneurs who have overcome numerous challenges to establish and grow their companies. It is crucial to recognize the vital role that black-owned businesses play in promoting economic development and creating job opportunities in the Cincinnati area.
In the past, individuals belonging to minority groups have faced difficulties in accessing entrepreneurial resources such as startup capital or investors.
According to the report, “Black or African American individuals have the chance to amass wealth through business ownership. This is especially crucial for Black or African American families, who had a median net worth of $24,100 in 2019, which is 7.8 times less than the median net worth of White families.”
Matthew Cuff, the owner of Just Q’in BBQ, emphasized the significance of access to capital and opportunities, particularly in neighborhoods in Cincinnati. As an African American entrepreneur, he highlighted the importance of education in achieving success. He cautioned that having only two of these factors can lead to unfavorable outcomes.
In 2009, while working as an engineer at General Electric, Cuff started his own business as a passion project. This eventually led to the establishment of a food truck business. Thanks to funding from Cincinnati’s first mobile vending program, he was able to open his first brick-and-mortar location in 2011.
Cuff believes that Black businesses can offer a unique perspective and flavor. She emphasizes the importance of having representation for young Black children in their community who can look up to and aspire to be like successful entrepreneurs who share their race and ethnicity. She also notes that diversity is crucial in all aspects of life, including business and entrepreneurship.
According to Kearney, the success of Black-owned businesses, as well as those owned by Hispanic and Asian Americans, is a positive sign for the community and suggests that things will continue to improve.
Kearney expressed that job opportunities have increased, schools have improved, and neighborhoods have become better. He added that there are also more taxes allocated for infrastructure such as roads and bridges.
As a Cincinnati-based small business owner, Nijah Adams recognizes the significance of having access to financial resources. She is also a member of the Black community and runs a Black-owned business.
She stated that sometimes, despite having the desire to achieve something, lack of funds can hinder progress. She shared her own experience of taking on a second job and gradually saving up from her personal earnings to reach her goal.
In 2020, Skin Haven Aesthetics was founded by Adams, who utilized small business loans during the COVID pandemic.
Adams expressed that many establishments have flourished after receiving essential funding. “They just required that additional boost of capital to take off,” he shared. While Adams hopes that more opportunities will arise, he believes it is possible by providing more grants for minorities and simplifying the process.
You can find a plethora of resources for entrepreneurs through AACC, as mentioned by Kearney. With over 120 resources available, you can inquire about them by visiting their website.
The impact of Black-owned businesses on the economy and fiscal situation of Southwest Ohio and NKY is a crucial topic. Scribd has published a report on this subject titled “The Economic and Fiscal Impact of Black-Owned Businesses in Southwest Ohio and NKY” by webeditors.