FOR IMMEDIATE RELEASE AT 10:30 A.M. EDT
THURSDAY, JULY 12, 2001
Public Information Office
CB01-115
301-457-3030/301-457-3670 (fax)
301-457-1037 (TDD)
e-mail: pio@census.gov
Eddie Salyers/Valerie Strang
301-457-3316
Minority-Owned Firms Grow Four Times Faster
Than National Average, Census Bureau Reports
Minority-owned businesses grew more than four times as fast as U.S. firms
overall between 1992 and 1997, increasing from 2.1 million to about 2.8
million firms, according to a
report released today [pdf] by the Commerce
Department's Census Bureau.
The 30 percent growth rate exceeded the 7 percent increase for all U.S.
firms, which jumped from 17.3 million in 1992 to 18.4 million in 1997.
Receipts of all minority-owned firms (excluding C corporations) rose 60
percent to $335.3 billion in 1997, compared with a 40 percent increase for all U.S.
firms over the same period.
In releasing the report, Under Secretary for Economic Affairs Kathleen B.
Cooper said, "We are pleased to report that this portrait of the American
economy shows rapidly expanding opportunities for minority entrepreneurs and a
more diverse universe of small businesses."
Ronald N. Langston, director of the Commerce Department's Minority Business
Development Agency (MBDA), said, "Today's report clearly indicates
minority businesses are growing at a faster rate than U.S. businesses
overall." He further said, "As the director of MBDA, I will work to
empower minority businesses to achieve higher levels of success by directing
MBDA to be innovative and focused on entrepreneurship."
The growth estimates do not include C corporations, for which comparable
1992 data are not available. C corporations were covered for the first time in
the report, 1997 Survey of Minority-Owned Business Enterprises: Summary. C
corporations encompass all legally incorporated businesses, except for
subchapter S corporations. Subchapter S corporations are those whose
shareholders elect to be taxed as individuals rather than as corporations.
Forty-three percent ($255.9 billion) of all revenues generated by
minority-owned businesses were produced by 252,900 C corporations.
Including C corporations, there were more than 3 million minority-owned
business enterprises, employing 4.5 million people and generating $591.3
billion in revenues. Overall, minority-owned firms made up 15 percent of the
nation's businesses and generated 3 percent of all receipts.
Minority-owned businesses are those owned by African Americans, Hispanics,
Asians and Pacific Islanders, or American Indians and Alaska Natives.
The vast majority of these firms, 82 percent or 2.5 million, were sole
proprietorships (unincorporated businesses owned by individuals).
Highlights from the report:
- California, Texas, New York and Florida, the nation's most populous states and home to nearly half of all minority residents, had the largest number of minority-owned businesses.
- While Hispanics owned the largest share of firms owned by minorities, Asian- and Pacific Islander-owned firms reaped the largest share of minority-owned business revenues -- 52 percent.
- Men were owners of about 55 percent of the firms owned by each of the four minority groups. African Americans had the largest percentage of firms owned by women -- 38 percent.
- Thirty-nine percent of all minority-owned firms had 1997 receipts of under $10,000; about 3 percent had sales of $1 million or more.
- Average receipts per firm were $194,600 compared with $410,600 for all U.S. firms, excluding publicly held corporations and firms (such as mutual companies) whose owners' race or ethnicity could not be determined.
- About 1 in 5 of all minority-owned firms had paid employees. More than 4,400 minority-owned firms had 100 or more employees.
-
Fifty-nine percent of all minority-owned firms were in the services and retail trade industries, accounting for 43 percent of all receipts.
The following tables show the top states by number and percentage of
minority-owned firms:
| Ten States with the Largest Number of Minority-Owned Firms: 1997 | ||
| Geographic Area | Total Minority-Owned Firms | Percent of Total Minority-Owned Firms in U.S. |
| U.S. Total | 3,039,000 | 100 |
| California | 738,000 | 24.3 |
| Texas | 365,500 | 12.0 |
| New York | 296,500 | 9.8 |
| Florida | 286,900 | 9.4 |
| Illinois | 110,300 | 3.6 |
| New Jersey | 102,300 | 3.4 |
| Georgia | 88,700 | 2.9 |
| Maryland | 82,600 | 2.7 |
| Virginia | 71,700 | 2.4 |
| North Carolina | 61,600 | 2.0 |
| States with the Largest Percentage of Minority-Owned Firms: 1997 | |||
|
Geographic Area |
Total Minority-Owned Firms |
All Firms |
Minority-Owned Firms as a Percent of All Firms |
| U.S. Total | 3,039,000 | 20,821,900 | 14.6 |
| Hawaii | 54,300 | 94,000 | 57.8 |
| District of Columbia | 15,200 | 45,300 | 33.6 |
| California | 738,000 | 2,565,700 | 28.8 |
| New Mexico | 37,500 | 131,700 | 28.5 |
| Texas | 365,500 | 1,526,000 | 24.0 |
| Florida | 286,900 | 1,301,900 | 22.0 |
| Maryland | 82,600 | 400,200 | 20.6 |
| New York | 296,500 | 1,509,800 | 19.6 |
| Alaska | 10,700 | 64,100 | 16.7 |
| New Jersey | 102,300 | 654,200 | 15.6 |
| Georgia | 88,700 | 568,600 | 15.6 |
The data in the report were collected as part of the 1997 Economic Census from a large sample of nonfarm businesses filing tax forms as sole proprietorships, partnerships or any type of corporation with receipts of $1,000 or more in 1997. The economic census is taken twice a decade in years ending in 2 and 7.
The report presents data for minority-owned businesses by gender, size, type of business, geographic area (states, counties, metropolitan areas and places) and specific race and ethnic groups.
The data are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling error include errors of response, nonreporting and coverage.
Further details concerning survey design, methodology and data limitations are contained in the full report. Comparisons with 1992 data should be conducted with extreme caution because of changes in tax laws that cause inconsistencies between the 1992 and 1997 data. Changes in survey methodology also may contribute to differences.
| Percentage
of Total Minority-Owned Firms by State Compared with Percentage of Minority-Owned Firms to All Businesses by State: 1997 |
||||
|
Geographic Area |
Total Minority-Owned Firms | Percent of Total Minority Firms in U.S. | All Firms |
Minority as a Percent of All Firms |
| U.S. Total |
3,039,000 |
100 | 20,821,900 | 14.6 |
| Alabama | 28,300 | 0.9 | 285,200 | 9.9 |
| Alaska | 10,700 | 0.4 | 64,100 | 16.7 |
| Arizona | 43,300 | 1.4 | 329,000 | 13.2 |
| Arkansas | 13,000 | 0.4 | 193,400 | 6.7 |
| California | 738,000 | 24.3 | 2,565,700 | 28.8 |
| Colorado | 37,000 | 1.2 | 410,200 | 9.0 |
| Connecticut | 20,400 | 0.7 | 284,000 | 7.2 |
| Delaware | 5,300 | 0.2 | 56,600 | 9.4 |
| District of Columbia | 15,200 | 0.5 | 45,300 | 33.6 |
| Florida | 286,900 | 9.4 | 1,301,900 | 22.0 |
| Georgia | 88,700 | 2.9 | 568,600 | 15.6 |
| Hawaii | 54,300 | 1.8 | 94,000 | 57.8 |
| Idaho | 5,200 | 0.2 | 109,800 | 4.7 |
| Illinois | 110,300 | 3.6 | 882,100 | 12.5 |
| Indiana | 22,800 | 0.8 | 413,400 | 5.5 |
| Iowa | 5,300 | 0.2 | 227,600 | 2.3 |
| Kansas | 11,700 | 0.4 | 213,400 | 5.5 |
| Kentucky | 12,700 | 0.4 | 281,600 | 4.5 |
| Louisiana | 41,700 | 1.4 | 295,700 | 14.1 |
| Maine | 2,800 | 0.1 | 127,500 | 2.2 |
| Maryland | 82,600 | 2.7 | 400,200 | 20.6 |
| Massachusetts | 39,000 | 1.3 | 537,200 | 7.3 |
| Michigan | 51,800 | 1.7 | 677,500 | 7.6 |
| Minnesota | 15,300 | 0.5 | 410,600 | 3.7 |
| Mississippi | 22,000 | 0.7 | 167,900 | 13.1 |
| Missouri | 26,600 | 0.9 | 411,400 | 6.5 |
| Montana | 3,400 | 0.1 | 93,700 | 3.6 |
| Nebraska | 4,600 | 0.2 | 138,800 | 3.3 |
| Nevada | 15,200 | 0.5 | 129,800 | 11.7 |
| New Hampshire | 3,200 | 0.1 | 115,700 | 2.8 |
| New Jersey | 102,300 | 3.4 | 654,200 | 15.6 |
| New Mexico | 37,500 | 1.2 | 131,700 | 28.5 |
| New York | 296,500 | 9.8 | 1,509,800 | 19.6 |
| North Carolina | 61,600 | 2.0 | 570,500 | 10.8 |
| North Dakota | 1,500 | 0.0 | 55,300 | 2.7 |
| Ohio | 49,400 | 1.6 | 781,300 | 6.3 |
| Oklahoma | 28,500 | 0.9 | 280,700 | 10.2 |
| Oregon | 18,200 | 0.6 | 291,600 | 6.2 |
| Pennsylvania | 49,500 | 1.6 | 837,800 | 5.9 |
| Rhode Island | 4,800 | 0.2 | 80,900 | 5.9 |
| South Carolina | 30,800 | 1.0 | 260,300 | 11.8 |
| South Dakota | 1,700 | 0.1 | 65,800 | 2.6 |
| Tennessee | 32,500 | 1.1 | 415,900 | 7.8 |
| Texas | 365,500 | 12.0 | 1,526,000 | 24.0 |
| Utah | 8,600 | 0.3 | 169,200 | 5.1 |
| Vermont | 2,100 | 0.1 | 67,500 | 3.1 |
| Virginia | 71,700 | 2.4 | 480,100 | 14.9 |
| Washington | 42,900 | 1.4 | 447,400 | 9.6 |
| West Virginia | 4,300 | 0.1 | 111,700 | 3.8 |
| Wisconsin | 13,700 | 0.5 | 366,400 | 3.7 |
| Wyoming | 2,100 | 0.1 | 49,400 | 4.3 |
NOTE: Detail may not add to the total because a firm may be counted in more than one state.
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