Diversification in the construction industry is a key focus for companies as labor challenges persist. However, the gap between non-Hispanic White workers and Black and Asian workers remains significant, a fact underscored by Black History Month, which recognizes the often-overlooked contributions of Black people to United States history, culture and society.
Persistent Gaps in Representation
According to a 2023 American Community Survey, non-Hispanic Black workers comprise 5% of the construction industry. Conversely, White workers account for more than 57% of the construction workforce.
When it comes to ownership, just 7% of all U.S. construction companies are owned by Black entrepreneurs. A 2023 Pew Research Center survey found that in 2022, there were 194,585 U.S. firms with majority Black ownership. In the construction industry, a LendingTree analysis of the 2024 U.S. Census Bureau Annual Business Survey showed more than 14,000 construction companies were Black-owned in a sector with more than 100,000 construction organizations total.
Capital Access Remains a Barrier
In a report by the Connecticut Community Outreach Revitalization Program (ConnCORP), one of the main reasons why so few companies are Black-owned is a lack of accessible capital. The report surveyed around 300 Black business owners across Connecticut. It found that while Black people start businesses at higher rates compared to other ethnicities, they do so with their own money, not loans, out of concern for discrimination.
“This year’s report tells a story that is both inspiring and sobering,” writes Erik Clemons, CEO of ConnCORP. “Black entrepreneurs across Connecticut are innovating, adapting and building despite persistent barriers that should not exist in 2025. The data is clear: our ecosystem is strong, but inequities in access to capital, municipal support, business readiness resources and coordinated ecosystem guidance continue to limit growth.”
LendingTree presented several tips for Black entrepreneurs to improve their odds of starting a successful business, whether in the construction industry or not. The tips include:
Seeking out targeted funding and support programs. Small business grants, accelerators and loan programs designed for minority-owned businesses can provide capital and mentorship, helping close access gaps;
Establishing community and professional connections. Joining networking groups, industry associations, local chambers of commerce and entrepreneur meetups can open doors to clients, partnerships and mentorship;
Building strong business credit early. Separating personal and business finances, opening a business bank account and paying vendors on time can help establish business credit; and
Shopping for the best small business funding rates. Comparison shopping matters. Compare rates from multiple lenders. Every penny matters.
