As we reflect on Black History Month, it is important to recognize the profound contributions
Black entrepreneurs have made to the American economy. For generations, Black-owned
businesses have served as pillars of their communities – creating jobs, supporting families, and
helping build pathways to economic mobility.
Today, a new generation of technology is helping expand those opportunities. Artificial
intelligence (AI) is giving Black entrepreneurs new tools to grow their businesses, reach
customers, and operate more efficiently in an increasingly digital economy.
Black entrepreneurship has grown significantly in recent years. According to the U.S. Census’s
Annual Business Survey, Black-owned businesses generate more than $200 billion in annual
economic activity, employ more than 1.6 million workers, and pay more than $60 billion in
payroll each year. Black entrepreneurs are powerful engines of local job creation and economic
growth in communities across the country.
Yet many Black entrepreneurs continue to face persistent barriers to growth, particularly when it
comes to accessing capital and scaling their businesses. Black-owned businesses account for
only about 3 percent of U.S. employer firms, even though Black Americans represent roughly 14
percent of the population. Limited access to financing, networks, and resources can make it
more difficult for Black-owned businesses to expand, hire, and compete.
Digital tools are helping address these challenges by lowering the cost of doing business and
expanding access to new markets. Most Black-owned firms are small – 71 percent have fewer
than 10 employees – meaning digital tools can significantly expand their reach and operational
capacity.
By helping Black entrepreneurs operate more efficiently and connect with broader markets,
these tools can support business expansion and job creation at the local level. Across
industries, small business owners are already putting these tools to work in practical ways. For
example, a local restaurant owner might use AI to analyze customer ordering patterns and
design targeted promotions that bring customers back through the door, while a retail
entrepreneur could use AI-powered marketing platforms to generate product descriptions or
social media campaigns that reach customers far beyond their immediate neighborhood.
AI is quickly becoming an important part of Black business owners’ digital toolkit. Today, 66
percent of U.S. small businesses report using AI tools regularly, according to a 2026
QuickBooks survey of more than 5,000 businesses. For many small businesses, the efficiency
gains can be significant.
According to a recent survey by the Small Business &
Entrepreneurship Council, nearly three-quarters of small businesses say AI has strengthened
their competitiveness, and 60 percent report using it to improve efficiency and productivity. As a
result, 41 percent say AI allows them to spend more time focusing on growth, with many
reinvesting the savings into upgrading technology, increasing wages, or expanding operations.
This kind of growth has ripple effects that extend beyond individual businesses. When Black-
owned businesses grow, they create jobs, strengthen neighborhood commercial corridors, and
help drive economic opportunity within their communities.
Ensuring that entrepreneurs have access to emerging technologies will be critical to sustaining
this progress and expanding opportunities for future business owners. Policymakers should
prioritize expanding access to AI tools, education, training, and technical resources that help
entrepreneurs understand and adopt these technologies.
At the same time, policymakers should ensure that regulatory frameworks remain clear and
consistent, avoiding a patchwork of differing state requirements that could increase compliance
costs and create barriers for small businesses seeking to innovate and grow. For example, if
states adopt different rules governing how AI tools can be used for advertising, customer
outreach, or data analytics, small businesses that sell products online could face conflicting
requirements depending on where their customers live. Navigating multiple regulatory systems
can create uncertainty and raise costs, making it harder for smaller businesses to expand into
new markets.
Black entrepreneurship has long been a powerful force for resilience, creativity, and community
leadership. As AI continues to evolve, it offers a new set of tools that can help Black
entrepreneurs grow their businesses, create jobs, and expand opportunity in neighborhoods and
communities across the country.
