Has Black Entrepreneurship Flourished Under President Joe Biden?

During Black History Month, President Joe Biden has emphasized the significant progress made by Black Americans under his presidency, including the historically low Black unemployment rate, a substantial decrease in Black child poverty, over $130 billion in student debt forgiveness, and record numbers of new Black entrepreneurs. These claims have been fact-checked and have been found to be mostly accurate.

According to data from the U.S. Census Bureau’s Annual Business Survey and the Federal Reserve’s Survey of Consumer Finances, there has indeed been a surge in Black business ownership to record levels. The number of Black-owned businesses with more than one employee has seen a consistent increase since 2017, with the largest percentage increase occurring between 2020 and 2021. The 2022 survey from the Federal Reserve also revealed that 11% of Black households now have equity in a business, signifying a significant increase from previous years.

The policies of the Biden administration have been acknowledged as contributing to this growth. Changes to the Paycheck Protection Program, a pandemic-era initiative that provided loans to businesses to maintain their workforce during public health restrictions, played a role in increasing support for minority-owned businesses. Furthermore, independent analyses have supported the notion that Biden’s policies have helped drive these increases, thereby providing additional validation to the claims made in the advertisement.

Despite these advancements, Black business ownership still lags behind that of white Americans. While there has been remarkable growth in Black-owned businesses, they still encounter challenges in achieving full equity. Although Black Americans represent 14.4% of the U.S. population, they only account for 2.7% of business owners. This underscores the need for continued efforts to address the systemic barriers that have limited Black entrepreneurs’ access to capital, networks, and government contracts.

In conclusion, the advertisement’s claim about record numbers of new Black entrepreneurs during Biden’s presidency is supported by data and independent analyses. While the surge in Black business ownership is a positive development, it also underscores the necessity for ongoing efforts to address the disparities that persist in entrepreneurship. With the implementation of the right policies and support, the path to full equity for Black entrepreneurs can become a reality.
By Louis Jacobson, PolitiFact Staff Writer.