10 US states where black entrepreneurs have the best chance of establishing successful businesses and getting the resources they need to succeed

David J. Phillip/AP

Patrice Farooq is the owner of Cupcake Kitchen Houston bakery in Houston, Texas.

• There are 2.6 million black-owned businesses in the US, yet black founders receive just 1% of venture capital.
• Fit Small Business ranked all 50 states based on opportunities for black entrepreneurs, local startup climate, and social and financial equality.
• Georgia was the top state, while Texas, Florida, and California also ranked among the top five.
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Although there are 2.6 million black-owned businesses in the US, the country still has a long way to go before they have equal opportunities, funding, and environments for growth.

Black founders receive just 1% of venture capital, according to a study by RateMyInvestor, a website where founders can rate their investors, and Diversity VC, a foundation promoting diversity in venture capital. While several black VCs are trying to close that gap, their efforts are often roadblocked by the lack of access capital, Fast Company reported.

Venture capital aside, black entrepreneurs can be impacted by other factors like cost of living, government incentives, startup survival rate, and local economic health. Some states are better equipped to support black founders and offer more resources for starting and scaling a business.

Fit Small Business, a website that writes advice for small businesses, ranked all 50 states based on opportunities and benefits for black entrepreneurs. The site ranked each state on start-up climate and opportunity, economic and financial health, social and financial equality, and black-owned business success. The report also included data from Kauffman Indicators of Entrepreneurship, WalletHub, and US News, among other surveys.

WalletHub's study rated all 50 states on racial progress, measuring levels of equality achieved over time. This metric was based on several factors such as gaps in median annual income, unemployment rate, homeownership, education, and voter turnout.

Here are the top 10 best states for black entrepreneurs, ranked lowest to highest.