Black healthcare businesses set to benefit most from growing economy, new report says

Black businesses in healthcare and related industries are amongst those expected to benefit the most from the growing U.S. economy.

According to a report by William Michael Cunningham, economist and owner of Creative Investment Research, these corporations make up 28% of all black-owned businesses within the country across every industry, meaning the black business community tends to fare higher when the sector grows.

His evaluation comes after gross domestic product (GDP) doubled, rising a surprising 2.8% within the second quarter of this 12 months from 1.4% in the primary quarter. Spending on health care and related businesses increased by about $27 billion from the primary quarter to the second.

GDP is a vital economic indicator that essentially measures the worth of all goods and services produced in America over a given time frame.

Cunningham said much of the GDP growth in health care should translate into Black businesses doing relatively higher, “assuming these businesses have their costs under control and GDP growth trends continue, which we think they will.”

Cunningham said BLACK ENTREPRENEURSHIP that for minority-owned businesses, higher economic growth should lead to greater availability of credit and investment opportunities. He added that these opportunities are crucial to the sustainability of minority businesses.

The healthcare sector is critical for minority employment and ownership. “Growth in healthcare should be particularly significant for Black businesses, given their overrepresentation in this space.”

In the potential impact on other industries where Black businesses operate, Cunningham said the second-quarter 2024 data reveals sector-specific findings which are key to understanding the landscape for minority-owned businesses. For example, he said, the information shows a rise in consumer spending on services and goods, which should bode well for minority-owned businesses.

He listed major contributions in motorcars and parts, recreational goods and vehicles, household equipment and durables, and gasoline and other energy products in the products sectors. Black businesses are widely represented in these areas, aside from energy.

In addition, he said the rise in private investment in inventory mirrored increases in wholesale and retail trade. “Retail trade accounts for 38 percent of businesses owned by black and other minority employers, underscoring its importance to minority communities, so growth in retail trade should also support increased minority economic activity.”

However, Cunningham stressed that the advantages of growth are unevenly distributedMinority-owned businesses face increased competition without proportional access to the resources mandatory to compete effectively.