Atlanta has often played a pivotal role in propelling the country forward in social change. It has been a cradle for the Civil Rights movement, a banner for half a century of Black mayoral leadership, and a home for some of the country’s most renowned Historically Black Colleges and Universities (HBCUs).
Atlanta has historically demonstrated its propensity to attract businesses, facilitate development and serve as an economic engine for the American South. However, despite its role as an economic anchor, the city’s wealth is not equally distributed. The typical Black household in Atlanta holds about $5,180 in wealth, compared with $238,350 for the typical white household — a 46 to 1 racial wealth divide.
Credit: Handout
Credit: Handout
The Atlanta Wealth Building Initiative (AWBI) is a catalytic nonprofit that is committed to fostering inclusive economies that work for all, with an explicit focus on historically disinvested communities in Atlanta and across the South. We leverage research, policy advocacy, capacity building and equitable community development practices to promote wealth-building. AWBI also strategically pools and deploys capital to community-based organizations and mission-aligned entities focusing on building a community’s wealth.
The staggering racial and wealth divide in the city is best illustrated by Interstate 20. The 2024 Changing the Odds report, published by the Annie E. Casey Foundation, uses Atlanta’s Neighborhood Planning Unit (NPU) system to analyze economic, educational, and community development trends affecting children and families. The report found that NPUs north of I-20 tend to be majority white and experience better outcomes than those south of I-20, which are home to majority Black residents.
Evidence shows that one possible vehicle for wealth creation is business ownership. Preliminary research offers that scaling Black businesses will significantly reduce the racial wealth divide. Community input emphasized that a key method to ensuring a business can build wealth for Black business owners is to remove structural barriers that prevent Black-owned businesses from hiring employees and increasing their revenues. In Atlanta, those structural barriers are persistent. According to our analysis of Black business ownership and focus groups with the community:
· 97% of Black-owned businesses have just one employee — the owner.
· Annual revenue for Black-owned businesses are lower than the revenues of other businesses in the Atlanta area, and Black-owned businesses are overrepresented in lower-revenue industries.
· Small Black businesses are being displaced in majority Black neighborhoods. The median commercial rent in Atlanta’s majority Black neighborhoods increased 98% between 2013 and 2024. The sharp increases in commercial rents can lead to instability for Black-owned businesses’ tenure in the neighborhood, making these businesses vulnerable to displacement.
AWBI’s commitment to bolster Black businesses within the city has resulted in $83 million leveraged through microloans and grants to small businesses, capacity-building support and technical assistance since 2018. We are also committed to promoting policy solutions that ensure Black businesses can operate and create good jobs.
Our most recent efforts center on commercial and cultural corridors in historically Black neighborhoods. AWBI is currently focused on preserving and advocating for the growth of Historically Black Commercial Corridors (HBCCs) within the city. These corridors — not limited to the conventional notion of “Black Wall Streets” — embody a comprehensive understanding of commercial districts serving Black patrons, business owners and the extended community throughout generations. This positions AWBI and our allies in a unique way to inform, advise and drive equitable community development for the Southside neighborhood businesses that need the most economic support.
The change we hope to see in Atlanta will only be realized through a collective effort. As a member of the Changing the Odds Network, led by the Annie E. Casey Foundation, AWBI is just one of 61 organizations working toward more equitable outcomes for families and children. Neighborhood businesses are needed in communities to provide vital services, foster community pride and circulate wealth. There are so many ways we can protect the local businesses we know and love. One way is by urging city leaders to boldly commit to creating a policy environment that enables Black businesses to thrive for generations. To start, policymakers should:
· Expand affordable commercial space opportunities in the city.
· Increase transparency in procurement outcomes for Black-owned businesses in the city.
· Leverage infrastructure investments to increase opportunities for Black-owned businesses in infrastructure spending.
· Establish an Office of Community Wealth Building to support people centered development and community-oriented solutions.
These first steps will ensure that Atlanta’s economic opportunity is shared by all, creating a truly inclusive economy.
Jarryd Bethea is a senior research associate at the Atlanta Wealth Building Initiative.
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