In commemoration of Black History Month, we previously explored the growth trajectory of Black-owned employer businesses across metro Atlanta, comparing these numbers with other Sunbelt peer metros and over time. But to better understand the economic impact of these businesses, we are taking a deeper look at the latest release from the U.S. Census’ Annual Business Survey, this time focusing on just metro Atlanta Black-owned firms: what they earn, how much they pay their employees, and how these numbers vary by industry and size across the metro.
Our first chart shows average annual revenue by 2-digit NACIS code (top 7 only). When it comes to average annual revenue per firm, Wholesale Trade is the clear standout at roughly $3.2 million per business. This figure is more than double the next highest sector, Retail Trade at $1.4 million. Manufacturing rounds out the top three at $1.2 million of average annual revenue.
Chart 1: Average Annual Revenue of Black-Owned Firms by Industry (Top 7)
Revenue is one thing, but what about employee compensation? The picture shifts dramatically when looking at average annual payroll by industry. Management of Companies and Enterprises leads the way with an average annual payroll of around $110,000, followed by Information at around $77,000, and then Wholesale Trade at $60,000. Interestingly, despite being the runaway leader in average annual revenue, businesses in Wholesale Trade are a distant third in the payroll category. Payroll in this industry is very similar to that of Professional, Scientific, and Technical Services at roughly $57,000. Black-owned employer businesses in Health Care and Social Assistance employ more people than any other industry and feature the 7th highest average annual payroll of any industry in the metro.
Chart 2: Average Annual Payroll of Black-Owned Firms by Industry (Top 7)
Finally, while you might expect larger firms to pay higher average wages across the board, the data tell a slightly different story. Black-owned employer firms with 250-499 employees pay the highest average per-employee compensation at nearly $71,000, suggesting these larger small firms might operate in higher-wage sectors or have reached sufficient operating scale to offer competitive salaries.
However, the smallest Black-owned employer firms (1-4 employees) actually pay higher average salaries ($41,400) than mid-size firms in the 20-249 employee range. This could be the result of small businesses in niche fields like specialized consultants, tech startups, or professional services that pay higher average salaries than firms of greater size.
For the 50-99 employee category, note that the Census Bureau has suppressed this value due to the small sample size.
Chart 3: Average Annual Payroll of Black-Owned Firms by Firm Size
From these data, we see the great diversity in Black-owned businesses in the metro Atlanta area in terms of sectors, business revenue, and wage variance. We see businesses in high-revenue industries like Wholesale Trade and Manufacturing signaling a presence in these more capital-intensive sectors, while higher-wage industries like Management and Information point to Black business owners contributing to the local economy in these skilled, knowledge-based fields.