Minority Businesses Increasing Fast

minority-business

The number of minority-owned businesses increased by 45.6 percent to 5.8 million between 2002 and 2007, according to the U.S. Census Bureau’s 2007 Survey of Business Owners (published on July 13, 2010). That figure is more than double the national growth rate of all U.S. businesses, which increased by 18.0 percent to 27.1 million.

Increases in the number of minority-owned businesses ranged from 60.5 percent for black-owned businesses to 17.9 percent for American Indian- and Alaska Native-owned businesses. Hispanic-owned businesses increased by 43.6 percent. In addition, the number of women-owned businesses increased by 20.1 percent.

Receipts of minority-owned businesses rose 55.6 percent to $1.0 trillion between 2002 and 2007. Over the same period, receipts of Hispanic-owned and women-owned businesses increased by 55.5 percent and 27.0 percent respectively.

Additional highlights:

Minority-Owned Businesses

  • Of the nation’s 5.8 million minority-owned businesses in 2007, an estimated 5.0 million had no paid employees. Receipts of these nonemployer businesses totaled $164.4 billion.
  • Among all minority-owned businesses, 768,147 had paid employees in 2007. These businesses employed 5.9 million people with a total payroll of $168.2 billion. Receipts for minority-owned businesses with employees totaled $864.2 billion.
  • In 2007, 30.0 percent of minority-owned businesses were in repair and maintenance, personal and laundry services, and health care and social assistance.
  • Minority-owned businesses accounted for 56.9 percent of businesses in Hawaii, which led the nation, followed by the District of Columbia, where 40.2 percent of businesses were minority-owned, and California, where 35.6 percent of businesses were minority-owned.

Women-Owned Businesses

  • The number of women-owned businesses totaled 7.8 million in 2007, up 20.1 percent from 2002. By comparison, men-owned businesses totaled 13.9 million, up 5.5 percent from 2002.
  • In 2007, 31.9 percent of women-owned businesses were in repair and maintenance, personal and laundry services, and health care and social assistance.

Black-Owned Businesses

  • There were 1.9 million black-owned businesses in 2007, up 60.5 percent from 2002. Receipts of these businesses totaled $137.4 billion, up 55.1 percent from 2002.
  • In 2007, 37.6 percent of black-owned businesses were in health care and social assistance, repair and maintenance, and personal and laundry services.
  • Black-owned businesses accounted for 28.2 percent of businesses in the District of Columbia, which led the nation, followed by Georgia, where 20.4 percent of businesses were black-owned, and Maryland, where 19.3 percent of businesses were black-owned.

Asian-Owned Businesses

  • There were 1.6 million Asian-owned businesses in 2007, up 40.7 percent from 2002. Receipts of these businesses totaled $513.9 billion, up 57.3 percent from 2002.
  • In 2007, 32.3 percent of Asian-owned businesses were in repair and maintenance; personal and laundry services; and professional, scientific and technical services.
  • Asian-owned businesses accounted for 47.2 percent of businesses in Hawaii, 14.9 percent in California and 10.1 percent in New York.

Hispanic-Owned Businesses

  • The number of Hispanic-owned businesses totaled 2.3 million in 2007, up 43.6 percent from 2002. Receipts of these businesses totaled $345.2 billion, up 55.5 percent from 2002.
  • In 2007, 30.0 percent of Hispanic-owned businesses were in construction, repair and maintenance, and personal and laundry services.
  • Hispanic-owned businesses accounted for 23.6 percent of businesses in New Mexico, 22.4 percent of businesses in Florida and 20.7 percent of businesses in Texas.

Respondents to the 2007 Survey of Business Owners were asked to report the percent of ownership by gender, ethnicity, race and veteran status for up to four primary owners. Business ownership is defined as having 51 percent or more of the equity, interest or stock in the business.

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