• Fayetteville ranks second in the U.S. for the percentage of Black-owned businesses.
• The city previously held the top spot in 2019 but dropped slightly to 10.1% in 2022.
• Atlanta currently holds the top ranking with 11.3% of its businesses being Black-owned.

A recent study found that Fayetteville ranks second among U.S. metropolitan areas in the number of Black-owned businesses, reflecting a slight decrease from previous years.

A LendingTree study found that as of 2022, the latest year for which data is available, 3.3% of U.S. businesses are Black-owned, reflecting a 22.2% increase from the previous year. Fayetteville previously topped the rankings in 2019 but was excluded from the 2020 and 2021 lists due to data availability. In 2019, Fayetteville led the nation with 11.2% of its businesses being Black-owned, The Observer reported. Now, Fayetteville ranks second, with Black-owned businesses making up 10.1% of the local market.

The study said the city’s high ranking highlights its support for Black entrepreneurs and the broader growth of Black-owned businesses nationwide. Here are other key findings about this demographic.

Black-owned and women-owned business

The study said a quarter of all Black-owned businesses operate in the health care and social assistance sector, with Fayetteville having the eighth-largest Black population percentage at 37%.

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The study also highlights that many Black-owned businesses led by women are relatively new, yet a notable percentage earn hundreds of thousands in revenue. Women own 39.1% of Black-owned businesses in the U.S.

Matt Schulz, LendingTree chief credit analyst, said economic challenges may have played a role in the rise of Black-owned businesses.

“There’s no question that stubborn inflation and today’s high prices are spurring more people to seek new ways to supplement their income,” Schulz said in the study. “As the saying goes, necessity is the mother of invention, and it has never been easier or cheaper to start a small business than today, so it shouldn’t be a surprise that more Americans are going that route.”

Previous coverage:Fayetteville has the most Black-owned businesses nationwide, study finds

Top five rankings for Black-owned businesses

Below are the top five cities for percentage of Black-owned businesses.

1. Atlanta, Georgia: Out of 121,927 total businesses, 13,977 — or 11.3% — are Black-owned, with Black residents making up 33.6% of the population.
2. Fayetteville, North Carolina: Out of 4,759 total businesses, 480 — or 10.1% — are Black-owned, with Black residents making up 37% of the population.
3. Virginia Beach, Virginia: Out of 28,148 total businesses, 2,632 — or 9.4% — are Black-owned, with Black residents making up 29.3% of the population.
4. Memphis, Tennessee: Out of 17,256 total businesses, 1,606 — or 9.3% — are Black-owned, with Black residents making up 45.8% of the population.
5. Washington, D.C.: Out of 113,790 total businesses, 10,486 — or 9.2% — are Black-owned with Black residents making up 24.4% of the population.

“Many organizations are dedicated to helping Black entrepreneurs succeed,” Schulz said. “Googling ‘Black small business resources in my area’ can be a good start. This can lead to opportunities for much-needed funding, networking opportunities, training tools and much more.”

Reporter Lizmary Evans can be reached at levans@gannett.com.