Recent headlines often paint a bleak economic image for Black America, citing reports of a growing wealth gap for Black men and boys following 600,000 Black women being pushed out of the workforce. But as Black Business Month is underway, there is another reality: Black entrepreneurs have built businesses at historic rates, nearly 19 times faster than the broader business sector, creating jobs in industries with a growth potential worth watching.

This Brookings Institution report found that, for the first time, the U.S. had more than 200,000 Black-owned employer businesses in 2023. Together, these companies earned $249 billion in annual revenue, employed 1.8 million people and paid nearly $70 billion in wages. Since 2017, the report cites that Black-owned firms grew by 62 percent, outpacing overall employer business growth.

So where is this new “Black Gold Rush” taking form? Brookings identified several industries where Black-owned employer businesses are gaining the strongest traction.

Health Care and Social Assistance

According to Brookings data, businesses in health care and social assistance have the largest number of Black-owned firms. Entrepreneurs have found growth in home health, behavioral health, child care, senior care, medical offices, and wellness services, stemming from the aging population, rising demand, community trust and the need for culturally responsive care.

Related: The Most Iconic Fictional Black Businesses We Wish Were Real

Professional, Scientific and Technical Services

Professional services are also expanding, with Black-owned consulting, marketing, communications, accounting, human resources and strategy firms increasing.

Technology, especially artificial intelligence, is making it easier to get started in business. As The Root previously reported, the rapid growth of AI is driving demand for skilled trades to support the industry’s expansion.

Transportation

Transportation is another area where Black-owned businesses have established a strong presence. Brookings found that Black entrepreneurs have one of the strongest ownership concentrations in transit, particularly in trucking, logistics, passenger transport and delivery services. The transportation industry has evolved with e-commerce growth and supply chain demand.

Administrative Support

Administrative and business support services are also growing as more companies outsource staffing, payroll and customer service to independent firms.

The Creative Sector

In arts and entertainment, Black entrepreneurs are building businesses in performing arts, media, production, creative agencies and digital content creation.

Growth Factors

A common thread in these sectors is low startup costs, reliance on specific expertise and the ability to scale from solo operations to employer firms. Technology, including AI, cloud software and remote work, continues to make transitioning to these industries more accessible.

Barriers to the Boom

Despite historic entrepreneurial growth between 2017 and 2023, Brookings found that growth slowed to 3.2% between 2022 and 2023. While it did not analyze the cause, the report noted that sustained inflation, a cooling labor market and reduced venture capital may have contributed.

Additionally, Black Americans still represent a minuscule share of the nation’s employer-owned businesses. According to the National Urban League, only 2.5 percent of businesses are Black-owned.

Brookings also found that Black women are rejected for business loans three times more often than white business owners, so 61 percent have to fund their businesses themselves.

Access to loans, capital, contracts and networks is also limited across the board. A recent Worldmetrics report found only 12 percent of Black-owned businesses received a bank loan in 2022.

Even so, Brookings called these findings historic. While the report covers business conditions up to 2023, before recent changes in the economy and policy, it shows where Black-owned employer businesses have made the most progress. For entrepreneurs looking for new opportunities, these industries could be the best guide to where the next wave of Black business growth is starting.

What the Growth Really Means

Today’s Black Gold Rush is not about “making it” in one industry. It is being built step by step by entrepreneurs who are starting businesses that grow, hire people and create economic opportunities.