With momentum gaining through the Black Lives Matter movement, franchising is helping to empower minority groups through business ownership.

Diversity in Business

According to the latest Census, there are approximately 2.6 million black-owned businesses in the United States, an increase of more than 34 percent since 2007. Numerous Government initiatives, tax reforms and economic growth over the last few years has helped fuel this increase, along with the push in society for increased diversity and inclusivity in business.

Research carried out by Guidant Financial found some very positive and exciting statistics on African-American businesses across the country. Of the more than 3,000 black business owners who took part in the research, 49 percent considered themselves to be “very happy” in business, while 72 percent said that their businesses were currently profitable.

One-third of those who took part in the research declared they were “very confident” about small business in today’s climate. The top reason given for why black entrepreneurs are going into business for themselves? Thirty-four percent of respondents said they were ready to be their own boss.

By far, the most popular industry attracting most African-American entrepreneurs is the business service industry with 20 percent of black businesses falling into this category. The health, beauty and fitness industry, the food and restaurant industry, retail and the construction and contracting industries are all very similar, each accounting for approximately 9 percent of businesses owned by black entrepreneurs.

Franchising Success Rates

Franchising is attracting black business owners more than traditional small business ownership, with statistics showing just over 30 percent of franchises being owned by minority groups compared to just 19 percent of non-franchised businesses being owned by minorities. According to Derek Cafferata, CEO and President of franchise experts All State Franchise Finders, there are some key reasons for this.

Franchising continues to rise, with close to 800,000 established franchise units open across the country. The franchising industry employs almost 8.5 million people, with an output of nearly $8 billion US.

“More accessible franchise financing, lower initial start-up costs and some very effective diversity programs have helped to encourage African-American entrepreneurs to venture into the world of franchising,” says Derek. “Not to mention some really unique and consumer-driven franchise opportunities opening up across the country.”

Diversity Programs

“A number of programs are available to African-American entrepreneurs looking to move into business for themselves,” says Derek Cafferata. “You just need to know where to look and how to go about applying.”

The Minority Business Development Agency (MBDA), the National Minority Supplier Development Council (NMSDC) and the Local Initiatives Support Corporation (LISC) are just a few organizations focussing on helping minority-owned businesses get off the ground and succeed.

These groups, along with a number of other organizations, offer assistance with financing, business support, business development and even ongoing management support and advice.

Franchise Ownership from $25K

“Owning a franchise doesn’t need to cost you hundreds of thousands of dollars,” says Derek Cafferata. “In fact, there are some great franchise opportunities from as little as $25,000.”

Accounting and tax, commercial cleaning and home-care are just some of the industries that offer franchise opportunities from as little as $25,000 startup.

Future franchisees have a great selection of top-performing franchises to choose from without having to fund huge up-front franchise costs. Select from a wide range of industries to suit your lifestyle, passion and budget in order to find the right franchise to fit your needs.

With the help of an experienced franchise expert, the process of franchise selection, financing and setup doesn’t need to feel daunting or overwhelming. The right advice at the start will help set you on the path to business success. For more information, contact All State Franchise Finders, the franchising experts, on 1-800-544-2161 or visit allstateff.com today.