Minority Share Of U.S. Business Ownership Nears 15 Percent 99 Percent Of Minority-Owned Firms Are Small Businesses

Minorities now own nearly 15 percent of American businesses. And, 99 percent of these firms are small businesses. These findings are detailed in Minorities in Business, 2001, a report issued today by the Office of Advocacy of the U.S. Small Business Administration (SBA).

Washington, D.C. -- Minorities now own nearly 15 percent of American businesses. And, 99 percent of these firms are small businesses. These findings are detailed in Minorities in Business, 2001, a report issued today by the Office of Advocacy of the U.S. Small Business Administration (SBA).

   Clearly minorities have moved into the mainstream of American business and these numbers prove it," said Tom Sullivan, Chief Counsel for Advocacy. He continued, Minority ownership of business has more than doubled in the last two decades, and the positive results of this surge are being felt at all levels of our society."

   Minorities in Business, 2001 reviews the most recently available statistical information on minority--owned firms, their composition, growth, and turnover. It also examines the demographic characteristics of minority business owners compared with those of the population as a whole. The review indicates that while minority-owned businesses are vital to the success of the U.S. economy, significant issues continue to impede the growth of these businesses.

   Highlights of the report include:

 In 1997, minorities owned 14.6 percent of all U.S. businesses, or more than 3 million firms. These firms had more than $591 billion in revenues, created more than 4.5 million jobs, and produced about $96 billion in annual payroll.
 Of total 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 (numbers do not add to 100 percent since Hispanics can be of any race).
 In 2000, Hispanics counted for about 12.5 percent of the population but owned only 5.8 percent of U.S. firms in 1997 (latest data), Blacks constituted 12.3 percent of the population but owned only 4.0 percent of firms, Asians were 3.6 percent of the population and owned 4.4 percent of firms, and American Indians composed 0.9 percent of the population while owning 0.9 percent of the firms.
 Of new businesses with employees in 1992, 50.4 percent of Asian/Other-owned firms survived until at least 1996, compared with 48.7 percent of White non-Hispanic-owned firms, 44.9 percent of White Hispanic-owned businesses, and 34.7 percent of Black-owned firms.

More information can be found on the Office of Advocacy website, www.sba.gov/advo. The full Minorities in Business, 2001 report is available at http://www.sba.gov/advo/stats/min01.pdf. Technical questions may be addressed to Dr. Ying Lowrey, Economist, at ying.lowrey@sba.gov, or by mail to the Office of Advocacy, U.S. Small Business Administration, 409 Third Street, S.W., Washington, D.C. 20416.

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Created by Congress in 1976, The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate, directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Issues are identified through economic research, policy analyses, and small business outreach. The Chief Counsels efforts are supported by offices in Washington, D.C., and by Regional Advocates located across the United States. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call (202) 205-6533.