State of Black Business 2025 Update
Published: 08/01/2025
Updated: 07/31/2025
Since 2021, the State of Black Arizona (SBAZ) and Greater Phoenix Economic Council (GPEC) have collaborated to evaluate the challenges encountered by Black-owned and minority-owned businesses across the state. This comprehensive initiative has included research, public engagement, and the formulation of practical strategies aimed at promoting equity in areas such as entrepreneurship, capital access, financial literacy and the creation of generational wealth.
A key component of this work has been SBAZ’s development of The Arizona Business Database, which will be released in September. The database is a reliable and comprehensive compilation of current and emerging Black- and minority-owned businesses designed to address longstanding gaps in available data by incorporating economic, demographic and geospatial statistics.
Standout Industries
As the state has continued to see robust growth in business establishments, a few sectors have emerged as standouts for small businesses, meaning these industries make up a large share of the total firms. A comparative analysis of small business data (5 to 9 employees) from 2013-23 in Arizona highlights that the sectors experiencing consistent growth and representing a significant share of total establishments include: Retail Trade, Health Care and Social Assistance, Other Services (excluding Public Administration), Professional, Scientific, and Technical Services, Accommodation and Food Services, and Construction. Notably, in 2023, the Accommodation and Food Services sector saw a decline.
As SBAZ continues to enhance The Arizona Business Database, similar patterns in industry representation are emerging. However, two industries—Manufacturing and Arts, Entertainment, and Recreation—stand out as more prominent among Black-owned businesses compared to the broader Arizona economy.
| US Census Bureau | ||||
|---|---|---|---|---|
| Industry Code | Industry | 2013 | 2018 | 2023 |
| 44–45 | Retail trade | 19% | 17% | 8% |
| 62 | Health care and social assistance | 15% | 15% | 13% |
| 81 | Other services (except public administration) | 10% | 10% | 9% |
| 54 | Professional, scientific, and technical services | 9% | 9% | 17% |
| 72 | Accommodation and food services | 8% | 8% | 4% |
| 23 | Construction | 8% | 9% | 10% |
| Arizona Business Database | ||
|---|---|---|
| Industry Code | Industry | 2024 – 2025 |
| 81 | Other Services (except Public Administration) | 22% |
| 72 | Accommodation and Food Services | 15% |
| 44–45 | Retail Trade | 13% |
| 31–33 | Manufacturing | 13% |
| 54 | Professional, Scientific, and Technical Services | 9% |
| 54 | Arts, Entertainment, and Recreation | 6% |
Data sources – US Census Bureau: County Business Patterns by Employment Size: Establishments with 5 to 9 employees and the State of Black Arizona.
Despite ongoing structural challenges to business ownership, such as limited capital access and inequities in the credit system, there have been tangible gains. New funding sources, local business accelerators and strategic ecosystem partnerships are increasingly supporting early-stage minority entrepreneurs.
This year, we’re spotlighting Arizona businesses that have successfully navigated these barriers and whose journeys offer valuable lessons to fellow Black- and minority-owned ventures. Over the next few months, discover stories from business owners spanning industries on GPEC’s blog, and learn how they have tapped into resources and community to find success.
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View previous State of Black Business Reports to learn more.