And Haley isn’t the only one to start a business in response to the pandemic. Total number of companies employing employees in 2020-2021 The population of metro Atlanta grew by more than 5,000 people, according to an Atlanta Journal-Constitution analysis of new census data released in the fall. This is the highest year-over-year increase since at least 2017, when the Census changed how it surveyed business owners.
The largest growth rates from 2020 to 2021 were among Black or African American-owned employer businesses in the metro. The number of companies increased by 23.4%, from 8,663 to 10,689. Although the total number of black-owned employer businesses is much lower than white-owned businesses, the surge in new business for African-American businesses was eight times the growth rate for white-owned businesses that year.
From 2017 to 2021, the percentage of new Black-owned employer businesses in the metro increased by a staggering 57.3%, the highest of any racial group.
However, the employer companies represent only a small portion of the Black-owned businesses in metro Atlanta. According to the nonprofit Atlanta Wealth Building Initiative (AWBI), 97% of Black businesses in the region are sole proprietorships. The census only releases data through 2019, so it’s unclear how the pandemic has affected them.
bust and boom
New data on Black-owned employer businesses in the region reflects the recession-to-boom trend seen across the country in the wake of the pandemic.
In the first months after the coronavirus disease (COVID-19) spread across the United States, 41% of Black businesses closed between February and April 2020, according to researchers at Stanford University.
But then the rebound happened. U.S. Small Business Secretary Isabel Casillas Guzmán told the Atlanta Journal-Constitution that black entrepreneurship rates are at the highest they’ve been in 30 years.
Experts have different theories about what’s behind this growth.
Guzman said the increase may be due to a combination of people accessing startup capital due to the federal government’s unprecedented infusion of money during the pandemic, including the expansion of the child tax credit. He also said the job market had changed as more people left their jobs during the “mass resignations.”
“I think the pandemic has certainly brought changes that encourage people to pursue their dreams, but there are also great opportunities out there,” Guzman said.
Alex Camardel, AWBI’s vice president for policy research, suggested that the growth in employer firms may be due to an influx of pandemic relief funds, allowing companies to hire for the first time.
He also believes that changes in the labor market may mean people want to work for local small businesses rather than large corporations.
“It may have come as a result of choice, but it may have come as a result of, ‘My company is closing, so I need another opportunity,'” he says.
In Haley’s case, she decided to launch a new business because she saw opportunities in the medical and education fields due to the changes caused by the coronavirus.
“There were many more assets and inventory items in the hospital space to count,” Haley said. “There are vacancies at the university; [could] Ask, “Maybe I’ve deferred maintenance or postponed purchasing an item, but is there a way to take advantage of what I have now?”
His clients include Clark Atlanta University, North Carolina Duke Raleigh Hospital, North Carolina A&T State University, Emirates Airlines, and he has also worked with his previous employer, Delta Air Lines.
He also helps streamline the pickup process for ECOMSPACES, a local Black-owned e-commerce hub. Through Countifi, you can count items automatically instead of manually.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
But building a business while the world emerges from a pandemic hasn’t been easy for Haley.
“Honestly, it’s been a roller coaster,” he said. “But we’re getting it done.”
The Atlanta Journal-Constitution and Report for America are partnering to get more journalists covering the topics important to our communities. Please help us fund this important work. ajc.com/give
