from staff
The number of minority-owned businesses increased by 45.6 percent to 5.8 million between 2002 and 2007, more than twice the national rate of all U.S. businesses, according to the U.S. Census Bureau.
In addition, the number of women-owned businesses in-creased 20.1 percent during the same period.
The total number of U.S. businesses increased between 2002 and 2007 by 18 percent to 27.1 million.
The latest data come from the “Preliminary Estimates of Business Ownership by Gender, Ethnicity, Race and Veteran Status: 2007” from the U.S. Census Bureau’s 2007 Survey of Business Owners.
The preliminary report is the first of 10 reports on the characteristics of businesses owned by minorities, women and veterans to be released over the next year.
Increases in the number of minority-owned businesses rang-ed 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.
Receipts of minority-owned businesses rose 55.6 percent to $1 trillion between 2002 and 2007. Increases ranged from a high of 62.9 percent for Native Hawaiian and Other Pacific Islander-owned businesses to 28.3 percent for American Indian and Alaska Native-owned businesses.
Over the same period, receipts of Hispanic-owned and women-owned businesses increased by 55.5 percent and 27 percent respectively. Receipts of all U.S. businesses increased by 33.5 percent to $30.2 trillion.
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 (Hispanics may be of any race).
Business ownership is defined as having 51 percent or more of the equity, interest or stock in the business.
The Survey of Business Owners is conducted every five years as part of the economic census. The 2007 survey collected data from a sample of more than 2.3 million businesses.
All U.S. businesses:
• Employer firms: Of the nation’s 27.1 million businesses in 2007, roughly 5.8 million had paid employees. These businesses employed 118.7 million people, a 7.1 percent increase from 2002. Their payrolls totaled $4.9 trillion, up 28.2 percent from 2002, and their receipts totaled $29.2 trillion, up 33.8 percent.
• Nonemployer firms: An estimated 21.4 million businesses had no paid employees in 2007. Receipts at these firms totaled $972.7 billion, up 26.8 percent from 2002.
Minority-owned businesses:
• Of the nation’s 5.8 million minority-owned businesses in 2007, an estimated 5 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 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.
White-owned businesses:
• The number of white-owned businesses increased by 13.6 percent to 22.6 million between 2002 and 2007. Receipts of these businesses totaled $10.3 trillion, up 24.1 percent from 2002.
• In 2007, 28.5 percent of white-owned businesses were in professional, scientific and technical services and construction.
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 ac-counted 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 ac-counted for 47.2 percent of businesses in Hawaii, 14.9 percent in California and 10.1 percent in New York.
Native Hawaiian- and Other Pacific Islander-owned businesses:
• The number of Native Hawaiian- and Other Pacific Islander-owned businesses totaled 38,881 in 2007, up 34.3 percent from 2002; receipts of these businesses totaled $7 billion, up 62.9 percent from 2002.
• Repair and maintenance, personal and laundry services, and construction accounted for 26.9 percent of all Native Hawaiian- and Other Pacific Islander-owned businesses.
• Native Hawaiian- and Other Pacific Islander-owned businesses accounted for 9.4 percent of businesses in Hawaii, highest among all states.
American Indian- and Alaska Native-owned businesses:
• The number of American Indian- and Alaska Native-owned businesses totaled 237,386 in 2007, up 17.9 percent from 2002; total receipts of these businesses were $34.5 billion, up 28.3 percent from 2002.
• In 2007, 30.5 percent of American Indian- and Alaska Native-owned businesses were in construction, repair and maintenance, and personal and laundry services.
• American Indian- and Alaska Native-owned businesses accounted for 10 percent of businesses in Alaska, 6.3 percent in Oklahoma and 5.3 percent in New Mexico.
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 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.
Veteran-owned businesses:
• The 2007 Survey of Business Owners includes for the first time the number of veteran-owned businesses. The number of veteran-owned businesses totaled 2.4 million in 2007, with receipts totaling $1.2 trillion.
• In 2007, 32.5 percent of veteran-owned businesses were categorized in professional, scientific and technical services and construction.
• California accounted for 9.8 percent of veteran-owned businesses. Texas, Florida and New York accounted for 8.1 percent, 7.2 percent and 5.2 percent of veteran-owned businesses, respectively.