Why It Matters
Ohio’s Black-owned businesses are contributing a larger share to the state economy than at any point in recent memory, according to a new analysis — but the gains are concentrated in certain metro areas while others have seen significant decline. The findings carry implications for economic development policy and targeted investment across the state.
What Happened
The Health Policy Institute of Ohio examined U.S. Census data on Black-owned businesses statewide and found that more than 5,600 such businesses employ over 64,000 workers. Annual payroll for those businesses climbed 82 percent between 2017 and 2023, rising from $1.3 billion to $2 billion.
Ohio also outperforms national benchmarks on one key measure: Black Americans make up 14.5 percent of the state’s population, and Black-owned businesses account for 11 percent of all businesses in Ohio. By contrast, Black Americans represent 14.4 percent of the national population but own just 3.4 percent of U.S. businesses.
By the Numbers
The metro-level data reveals a sharp divide across Ohio. Cincinnati posted the strongest long-term growth — a 125 percent increase in Black-owned businesses between 2017 and 2023, with Black-owned firms now representing 3.5 percent of all businesses in that metro area. Toledo saw an 85 percent increase over the same period, with Black-owned firms comprising 3.3 percent of local businesses, though that market edged down 1 percent in the most recent year-over-year comparison.
Akron recorded a 27 percent increase from 2017 to 2023 but posted a steep 29 percent decline between 2022 and 2023 alone — a sign of recent volatility. The situation in Dayton and Youngstown was more severe. Dayton saw Black-owned businesses fall 56 percent over the full 2017–2023 period, with that same 56 percent drop occurring just in the 2022-to-2023 window. Youngstown declined 39 percent over the longer period and plunged 77 percent year-over-year.
Zoom Out
The Ohio findings fit within a broader national pattern. A Brookings Institution review of 116 U.S. metro areas found that 72 showed growth in Black-owned businesses, meaning a meaningful minority of markets experienced contraction. The cities with the largest year-over-year losses nationally included Atlanta, San Francisco, Raleigh, Charlotte, and Virginia Beach — a mix of Sun Belt boomtowns and coastal metros that had previously drawn significant Black entrepreneurial activity.
Brookings researchers Andre Perry and Hannah Stephens cautioned that positive aggregate trends should not be mistaken for self-sustaining momentum. “With numerous structural barriers to growth — such as credit access, intergenerational wealth gaps, and outsized levels of debt — Black-owned businesses will not magically grow without inclusive and intentional policy and investments,” they wrote.
The ownership gap between population share and business ownership remains wide at every level of government. Nationally, Black Americans own businesses at roughly one-quarter of the rate their population share would suggest. Ohio’s 11 percent figure, while still below the 14.5 percent population benchmark, represents a notably smaller gap than most states.
Ohio’s broader economic policy environment — including debates over incentive structures for business development — will likely factor into how state and local officials respond to these findings.
What’s Next
The Health Policy Institute of Ohio’s analysis is expected to inform ongoing discussions at the state and local level about how economic development resources are allocated. Policymakers in metros like Dayton and Youngstown face a more urgent challenge than their counterparts in Cincinnati or Toledo, given the steep declines recorded in both short- and long-term windows.
The Ohio Black Caucus has been active on several fronts this year, and the new business data may add economic stakes to broader legislative conversations about investment and equity. Whether state government responds with targeted programs — or defers to market forces — remains to be seen as budget and appropriations discussions continue at the Statehouse.