We are seeing tremendous growth in the number of businesses owned by Asian Americans.
New York, NY (PRWEB) October 29, 2014
A new study released today by Biz2Credit.com finds that Asian-owned businesses have higher average annual revenues, credit scores and expenses than other small companies.
Asian-owned companies comprised nearly 10 percent of the small business loan applications completed on Biz2Credit.com for the period beginning Jan. 1, 2013, until Sept. 30, 2014. The average age of business was 33 months, compared to just 25 months for all other ethnicities. The average annual revenue for Asian-owned businesses was $271,983, compared to $82,866 for non-Asian owned companies. As a result of the positive revenue performance, Asian-owned companies averaged a 658 credit score, compared to 618 for all other groups.
The average operating expenses for Asian-owned firms were $110,579, compared to $27,076 for all other groups. The Biz2Credit study also found that Asian-owned businesses were in operation longer than non-Asian owned companies (33 months vs. 25 months).
California had the highest percentage (15.32%) of the Asian-owned companies that applied for funding by Biz2Credit.com, followed by New York, which had 12.84% of the total, Texas (8.47%), New Jersey (8.41%), and Florida (7.39%).
"We are seeing tremendous growth in the number of businesses owned by Asian Americans," said Biz2Credit CEO Rohit Arora, one of the nation's leading experts in small business finance. "On the East Coast and in the Silicon Valley, many of them are in the booming IT sector."
"Interestingly, in the Midwest, immigrants from South Asia are opening or expanding gas station-convenience stores at unprecedented rates. They are also purchasing existing businesses from retiring Baby Boomers," added Arora, who examined annual revenue, credit scores, age of business (in months), and operating expenses. "The demographics of this country are changing substantially - even in areas that are not traditionally known for their diversity."
For this analysis, Biz2Credit defined "small businesses" as companies having fewer than 250 employees or less than $10 million in annual revenues.
Despite the financial success of Asian-owned firms, they still face challenges in securing financing.
"Many people of Asian descent are unfamiliar and intimidated by the financial system. Some of them do not have sufficient language skills to be able to write a good business plan or articulate what their business does well. These factors can impact the decision-making of underwriters in a negative way," Arora added.
About the Biz2Credit Asian Small Business Credit Study
Biz2Credit analyzed the financial performance of nearly 2,000 Asian-owned businesses that completed loan applications on Biz2Credit.com platform from January 1, 2013 until September 30, 2014. The companies had less than 250 employees and less than $10 million in annual revenues from across the country. For a link to the findings, click here.
About Biz2Credit
Founded in 2007, Biz2Credit is a leading credit marketplace connecting small and medium sized businesses with lenders, service providers, and complementary business tools. The company matches borrowers to financial institutions based on each business’s unique profile -- completed in less than four minutes -- in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,300+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers.
Having arranged $1.2 billion in funding throughout the U.S., Biz2Credit is widely recognized as the #1 online credit resource for small business loans, lines of credit, working capital and other funding options. Follow on Twitter @Biz2Credit, and http://www.facebook.com/biz2credit.