Black household business ownership jumped from 5% in 2019 to 11% in 2022, representing the fastest growth rate in three decades, according to the 2026 Black August Report released by Mom Your Business, a Philadelphia-based nonprofit founded by entrepreneur and former journalist Tanya Morris. The data arrives in the final week of National Black Business Month, a period that has spotlighted both the accelerating pace of Black entrepreneurship and the persistent capital gaps that continue to constrain it.
Key Takeaways
- Black household business ownership rose from 5% in 2019 to 11% in 2022, the fastest growth rate in 30 years, according to the 2026 Black August Report by Mom Your Business.
- Black women have become the fastest-growing group of microbusiness owners in the United States.
- Despite the ownership surge, Black communities received just 1.3% of overall philanthropic giving in 2022, and venture capital investment in Black-founded startups has declined sharply since peaking in 2021.
- The Philadelphia Black August Summit, held August 28 in Germantown, brought together entrepreneurs, nonprofit leaders, and city officials to address funding gaps and connect business owners to coaching, capital, and technology resources.
- Mom Your Business has worked with more than 2,300 women entrepreneurs and helped business owners secure more than $1 million in capital since its founding in 2017.
- August 28 converges National Black Business Month, Black Philanthropy Month, and Black Giving Day, and also marks the anniversary of the Rev. Martin Luther King Jr.’s March on Washington.
The Numbers Show a Surge in Ownership but a Collapse in Capital Access
The 2026 Black August Report tells two stories at once. The first is a story of momentum. A doubling of Black business ownership in three years, from 5% to 11% of households, represents a structural shift in how Black Americans are participating in the economy. Much of that growth was concentrated during and immediately after the pandemic, when disruptions to traditional employment pushed millions of workers across all demographics toward self-employment and entrepreneurship. For Black households, the move was amplified by a broader cultural push toward ownership, financial independence, and community-rooted enterprise that gained energy through social media, local business networks, and national initiatives like Buy Black campaigns.
Black women have been at the center of that growth. The report identifies Black women as the fastest-growing group of microbusiness owners in the country, a finding consistent with data tracked by the U.S. Census Bureau and the Association for Enterprise Opportunity. Microbusinesses, defined as enterprises with fewer than 10 employees, represent the majority of Black-owned firms and are concentrated in services, retail, food, beauty, wellness, and creative industries.
The second story is about capital. The report found that Black communities received just 1.3% of overall philanthropic giving in 2022, a figure that has remained stubbornly low relative to the population’s share of the economy and its stated entrepreneurial ambitions. Venture capital tells a similar story. Investment in Black-founded startups surged during 2020 and 2021, driven by corporate equity pledges and fund launches that followed the racial reckoning of that period. Since then, VC funding for Black founders has declined sharply, tracking the broader pullback in venture capital spending but falling faster and further than the market-wide contraction.
The gap between ownership growth and capital access is the central tension facing Black entrepreneurship in 2026. More Black Americans are starting businesses than at any point in recent history, but the funding infrastructure, from venture capital to philanthropy to government contracting, has not kept pace with the pace of formation.
The Black August Summit Connects Entrepreneurs to Coaching, Capital, and Technology
The Philadelphia Black August Summit, organized by Mom Your Business and held August 28 at 441 E. High Street in Germantown, was built around addressing that gap directly. The event brought together entrepreneurs, nonprofit leaders, city officials, and service providers for a day of workshops, networking, and resource-sharing during a convergence of National Black Business Month, Black Philanthropy Month, and Black Giving Day.
Tanya Morris, the founder of Mom Your Business and a North Philadelphia native, described the convergence of those three observances on the calendar as the catalyst for the summit’s creation. Morris, a former Philadelphia Tribune reporter and author of three books, launched the nonprofit in 2017 after spending two decades leading a nonprofit organization. Since its founding, Mom Your Business has worked with more than 2,300 women entrepreneurs and helped business owners secure more than $1 million in capital through pitch competitions, financing opportunities, and investment connections. The organization’s network now includes more than 600 businesses.
The summit featured keynote speaker Karla Trotman, CEO and owner of Electro Soft Inc., based in Montgomeryville, Pennsylvania. Trotman is a third-generation Black entrepreneur whose company provides electronics manufacturing solutions for the aviation, rail, transit, defense, and original equipment manufacturing industries. Her presence at the summit underscored a point that often goes unmentioned in discussions of Black entrepreneurship: Black-owned businesses are not limited to consumer-facing industries. They operate across advanced manufacturing, defense contracting, technology, and industrial sectors, often with deep generational roots.
A New Technology Platform and a $10,000 City Council Contribution Signal Institutional Support
The summit also served as the local launch of Source Code, a new business-growth technology platform developed through the Black Innovation Alliance. Mom Your Business is among the first organizations in the country selected as a founding provider partner for the platform. Entrepreneurs attending the summit were able to complete a business assessment, identify their stage of growth, and receive a customized business blueprint along with coaching from vetted experts.
The Black Innovation Alliance, which developed Source Code, operates as a national network of organizations focused on expanding access to innovation ecosystems for Black entrepreneurs and communities. The platform’s launch at the Black August Summit positions Philadelphia as an early testing ground for a tool designed to scale business development resources beyond the in-person events and one-on-one coaching that have traditionally defined the support landscape for Black-owned businesses.
Philadelphia City Council Majority Leader Katherine Gilmore Richardson presented a $10,000 contribution to Mom Your Business during the event as part of Black Giving Day. A spokesperson for Gilmore Richardson’s office confirmed the presentation, describing it as a direct investment in the organization’s work supporting Black women entrepreneurs in the Philadelphia region. Representatives from the Philadelphia Department of Commerce were also in attendance.
The summit included a nonprofit pitch competition awarding up to $5,000 to a participating organization, professional headshots provided by photographer Brandon Captures, and presentations from content creators, executives, and business coaches. General admission tickets were priced at $48, with VIP tickets sold out ahead of the event. The Women’s Opportunity Resource Center served as a sponsor.
The National Landscape for Black Business Shows Growth Under Pressure
The data from Mom Your Business aligns with a broader national picture of Black business growth operating under economic headwinds. The 126th National Business League Conference, held August 19 through 22 in Atlanta, convened Black business owners from across the country and launched “Project 2035,” a national economic sovereignty think tank designed to form a 10-year economic agenda for Black communities. The conference theme centered on artificial intelligence and its implications for Black business competitiveness, capital formation, and procurement access.
Atlanta, which leads the nation with Black-owned firms comprising more than 10% of all businesses in the city, has emerged as a nexus for national conversations about Black economic development. The city also hosted Invest Fest 2026, which drew more than 31,000 attendees to the Georgia World Congress Center and awarded $250,000 to two Black-led startups through its pitch competition.
At the same time, Black business leaders have raised concerns about federal contract access, the instability of grant funding, and the challenge of competing for customers in an uncertain macroeconomic environment. The AFRO American Newspapers reported in late August that Black entrepreneurs are facing new economic pressures, with some business leaders advising a shift toward state and local contracting opportunities and deeper relationships with Community Development Financial Institutions as federal procurement becomes more competitive.
For Morris and the entrepreneurs who gathered in Germantown on August 28, the data is clear: Black business ownership is growing at a historic pace, but the ecosystem of support, from venture capital to philanthropy to government investment, has not grown with it. Closing that gap is the work that remains.
FAQs
How Much Did Black Business Ownership Grow Between 2019 and 2022?
Black household business ownership rose from 5% in 2019 to 11% in 2022, the fastest growth rate in three decades, according to the 2026 Black August Report by Mom Your Business.
What Is National Black Business Month?
National Black Business Month is observed throughout August to recognize, celebrate, and support Black-owned businesses across the United States. The observance encourages consumers to shop with Black-owned firms and raises awareness of the challenges Black entrepreneurs face in accessing capital and resources.
What Is Mom Your Business?
Mom Your Business is a Philadelphia-based nonprofit founded in 2017 by Tanya Morris. The organization provides business coaching, mentorship, and capital access to Black women entrepreneurs. It has worked with more than 2,300 women entrepreneurs and supported more than $1 million in capital connections through pitch competitions and financing opportunities.
What Percentage of Philanthropic Giving Reaches Black Communities?
The 2026 Black August Report found that funding directed to Black communities accounted for just 1.3% of overall philanthropic giving in 2022, a figure that underscores the disconnect between the growth of Black-owned businesses and the philanthropic investment reaching those communities.
