The most recent statistics on minority-owned business are derived from the U.S. Census Bureau’s 1997 Survey of Business Owners. The Census Bureau is currently completing analysis on the 2002 Survey of Business Owners, and has recently issued some preliminary data from this survey. The following is a brief summary of statistical information derived from the 1997 Survey of Business Owners.
Composition and Contribution of Minority-Owned Businesses
Of U.S. businesses, 5.8 percent were owned by Hispanic Americans, 4.4 percent by Asian Americans, 4.0 percent by African Americans, and 0.9 percent by American Indians.
Of minority-owned businesses, 39.5 percent were Hispanic-owned, 30.0 percent Asian-owned, 27.1 percent Black-owned, and 6.5 percent American Indian-owned.
Business density is the number of individuals in the population divided by the number of businesses in the population – the lower the number, the higher the density. Business density was 10.1 for nonminorities, 11.7 for Asians and Pacific Islanders, 12.6 for American Indians and Alaska Natives, 29.4 for Hispanics, and 42.1 for Blacks.
Of the 4,514,699 jobs in minority-owned businesses in 1997, 48.8 percent were in Asian-owned firms, 30.8 percent in Hispanic-owned firms, 15.9 percent in Black-owned firms, and 6.6 percent in American Native-owned firms.
Growth of Minority-Owned Businesses
The minority-owned business share of U.S. firms was 6.8 percent in 1982; it grew steadily to 9.3 percent in 1987, 12.5 percent in 1992, and 14.6 percent in 1997.
Growth in the number of Hispanic- and Asian-owned businesses tracks growth in these populations over the period. Some of the growth in businesses owned by African Americans, American Indians, and Alaska Natives may be rooted in educational improvements and governmental policies designed to curb poverty and promote minority business ownership.
Of all businesses with employees that started in 1992 and had positive payrolls, 47 percent survived until at least 1996. The survival rates were 50.4 percent for new businesses owned by Asians and other minorities, 48.7 percent for White non-Hispanic-owned businesses, 44.9 percent for White Hispanic-owned businesses, and 34.7 percent for new Black-owned businesses.
Additional Links for More Information
The following websites will provide additional statistics and background information on minority-owned businesses.
The U.S. Small Business Administration’s Office of Advocacy provides research on issues of interest to U.S. small business. The Office of Advocacy has produces a report on Minorities in Business that you can download from their website.
The U.S. Bureau of the Census has made available extensive information from the 1997 Survey of Business Owners. In addition the Bureau of the Census has compiled related information into the 1997 Survey of Minority-Owned Business Enterprises.
The National Women's Business Council has assembled fact sheets on African American, Asian American, Latina, and Native American Women-Owned Business.