Black consumers support black business

What proportion of African-American income is spent witth black-owned business.

There are certain industries which are likely to serve primarily black customers.

Other industries more likely serve business and institutional clients.

Comparing the sales figures of black businesses by industry sectors to those consumer product classes indicates that the real answer to her question is: “It depends?”

Usually the key variable is proximity.  The more personal the product or service, the more likely it is provided by a black-owned business.

Perhaps the industry when black consumers are most likely patrons is health care, where the most recent black business sales figure for ambulatory health care is about 43 percent of black health care spending.

For hair, skin and nail services, black business receipts are about 38 percent of black spending in that sector.

In both health care and personal services, the figures are probably reductions from a period when black practitioners had closed exclusive markets. 

The 300 African-American auto dealers are making an impact among the black consumer market.  Their sales are 28 percent of black consumer spending.

The next ranking industry category is alcohol retailing where stores are capturing about 18 percent of the $3 billion in black spending.

In the education category, African-American elementary through post-secondary schools are gaining about 15 percent of the $7.5 billion black consumer market.

Black book stores revenue  stacks up to 14 percent of the $361 million spent on books.

On the low end, African-Americans spend only three percent on clothing with black-owned firms.

Black real estate  business revenues appear to capture only two percent of the $200 billion African-Americans spend on housing related expenditures.