This article is written and sponsored by Arlington Economic Development.
February is Black History Month, and this year the Small Business Coordinating Council will spotlight the State of Black Entrepreneurship with three dynamic speakers: Eric Alston and William Mitchell of WACIF, and Darin Cox, owner of The Peach Cobbler Factory in Washington, D.C.
Over the past decade, the growth of Black-owned businesses has been remarkable. Between 2017 and 2022, the number of Black-owned employer firms rose 56.9%, adding more than 70,000 new businesses. In 2022 alone, these firms generated $212 billion in revenue and paid $61 billion in salaries. Black women continue to lead the nation in business creation, driving a 71.6% increase in black-female–owned firms during that same five-year span.
Despite this positive momentum, however, black entrepreneurship is now at a pivotal crossroads. Innovation and new business formation remain strong, yet recent federal rollbacks, tighter access to capital, and shifting corporate commitments in 2025 have created formidable challenges. Among the most significant setbacks are:
- Federal support for disadvantaged businesses has declined sharply, jeopardizing an estimated $10 billion to $15 billion in annual resources for black-owned firms.
- The Minority Business Development Agency (MBDA) has faced efforts to dismantle it, undermining a key source of long-standing business support.
- Reduced funding for Community Development Financial Institutions (CDFIs) further limits access to affordable capital, which has already been a barrier for many black-owned firms.
With these higher barriers to financing and fewer federal procurement opportunities, local initiatives are becoming even more critical in building an inclusive economic ecosystem. Various community programs and organizations are stepping up to fill the gaps left by federal support, fostering a more supportive environment for entrepreneurs.
For those interested in getting involved, discussion forums will be available where local business leaders share insights and strategies to overcome prevalent challenges. Contact Prakriti Deuja at [email protected] for more information on joining us in person or online on Feb. 11, 2026, at 10:00 a.m. for this timely discussion. Participants will learn how local communities are stepping up to support one of the fastest-growing segments of entrepreneurs — and find ways to contribute to this positive development.
