As Black History Month draws to a close, we would like to celebrate and honor some of the pioneers of Black-owned businesses, many of whom paved the way for African Americans to open successful independent businesses of their own throughout the nation’s history.
These early pioneers are still a large part of the small business landscape in the US.
Keeping Up with the News
One of the most famous African American entrepreneurs is Chistopher J. Perry, who founded the Philadelphia Tribune in 1884. The newspaper began as a voice for the African American community, which was marginalized at the time. The paper became a voice for civil rights and assisted African Americans in finding jobs during the Great Depression.
The paper is still around today and has won several awards for its stellar journalism. Perry’s commitment to journalism and civil rights is still felt, as the paper covers both national and global events and is recognized as one of the foremost news sources in the city.
Oyster Pie and Freedom
In 1825, Thomas Downing, became the first Black man to open an independent restaurant, Downing’s Oyster House in New York City. The restaurant specialized in oyster pie, fried and stuffed oysters and — most importantly — was a stop on the Underground Railroad for slaves seeking freedom in Canada.
However, Black individual contributions to traditional American cuisine began much earlier. In 1790, French-trained chef James Hemings, a slave who was considered the property of the nation’s third president, Thomas Jefferson, opened a small restaurant in downtown New York City. That restaurant, which served diplomats and members of Congress, is credited for making macaroni and cheese, crème brûlée and french fries common staples of the American diet.
Moving on up
When John T. Ward, a free Black man, moved from Richmond, Va., to Columbus, Ohio, with his wife to start a farm, he may not have been aware that he was going to make history as the nation’s first Black man to own a small business, and the proud tradition he would leave behind.
After using his farm as a stop on the historic Underground Railroad until the end of the American Civil War, he joined his son, William S. Ward, in 1881 to launch EE Ward Moving & Storage, the nation’s first and oldest Black-owned business. The company was acquired from Ward’s descendants by family friends, Brian Brooks and Otto Beatty, in 2001 and is still in operation today as an industrial moving company.
Insurance Boon
In the late 19th and early 20th centuries, African Americans were forced to live in largely insulated communities due to unjust segregation and Jim Crow laws, especially in the American South. This led to a boon in independent small businesses in these communities. African American insurance companies, especially, began to crop up because of this, and the most prominent of these was the North Carolina Mutual Life Insurance Company.
The insurance company quickly grossed $250,000 by 1910 ($8.3 million in today’s money) and is still one of North Carolina’s largest life insurance companies today. Black-owned insurance companies are still prominent, mainly in the South. The National African-American Insurance Association, formed in the early 20th century to help empower African Americans in the insurance industry, is still around today.
A Lot to Celebrate
According to the US Census Bureau, the number of Black-owned small businesses grew to 134,567 in 2023, with about $133.7 billion in sales revenue and $40.5 billion in combined payroll. Just under 30% of those businesses are in health care and the social assistance sector, the largest percentage out of any minority-owned small business group.
Kapitus is proud to celebrate every Black small business owner who has followed in the footsteps of John T. Ward by overcoming the odds and following their dreams and passions to launch and successfully run a small business.
