Business Insider article BusinessInsider – Black owned businesses (BOCs) are more profitable than white-owned businesses, according to a study by the BOC Business Owners Coalition (Bocco).
The study, which looked at more than 1,000 BOCs across the US, found that the average profit for a BOC was $1.17, compared to $1 per $1 in white owned businesses.
The study, published on the Bocco website, compared the profitability of BOC businesses with the profitability for white-run businesses in the same region.
“It’s not just about being black owned, but the black business owners are a very good value for the dollar,” said Chris Bowers, founder of the Boca Raton-based BOCCO, who co-authored the report with BocCO founder and CEO John C. Cascio.
“For a Boca resident, that means that you’re paying less in taxes than you would if you owned a white business.”BOCCO is a coalition of more than 500 business owners who advocate for BOC business owners to be treated fairly by the federal government and local governments.
The coalition also promotes better BOC enforcement policies and better representation of BocCo business owners in local government.
Cascio said the study highlighted that BOCS are profitable for the average owner, even if they have a minority ownership stake in a business.
“We know that for some of the black-owned BOC companies, they do better than white businesses, even though they’re owned by the same community,” he said.
“This study provides some context and also highlights how these BOC owners are also worth more for taxpayers.”
For example, the Bancroft-based company The Black Lace Foundation has a total market value of $8 billion and has a Boc co-owner.
The Bancrop-based organization, founded by the Black Panthers, has a market value in excess of $100 billion and an owner that is a member of the Black Panther Party.
The study found that Bancrft-owned Black Laces are worth $2.1 billion and $1 billion more than Bancrafters-owned ones.
“Black owned businesses have higher profits because they are more efficient and less costly to run,” Casciosaid.
“We need to have more transparency in the federal tax code to help more of these businesses succeed.”
The study found more than half of the companies in the study were black-run and the majority were based in South Carolina.
The report found that African Americans were more likely than white Americans to own BOC properties, with 81 percent of Boca residents owning a Bancrac property compared to 72 percent of white residents.
“Boca Ratons Black Lacing Foundation is not alone in wanting to make sure black owned business owners have fair treatment under the law,” said Boc Co-Founder John Cascia.
“The Boca community has long been working to make this happen, and our hope is that this study will help Boca to make the case for fair treatment and economic opportunity for all Black people in Boca.”
The BOCCo is one of the oldest and largest BOC associations in the country.
The organization has a membership of more 100,000 businesses across more than 100 states, territories and countries.
For more information, visit www.blackownedbusiness.org