Minorities in Business, 2001

A report on the ownership, formation, management, financing, growth

and other social and economic characteristics of minorities in business,

based upon data compiled from federal government sources by the

Office of Economic Research of the U.S. Small Business Administration,

Office of Advocacy.

U.S. Small Business Administration

Office of Advocacy

November 2001

Minorities in Business, 2001

Office of Advocacy

U.S. Small Business Administration

409 Third Street, S.W.

Washington, DC 20416
Foreword

Minorities owned fewer than 7 percent of all U.S. firms, excluding C corporations, in 1982,

but this share soared to about 15 percent by 1997. Minorities owned more than 3 million

businesses in 1997, of which 615,222 had paid employees, generated more than $591 billion

in revenues, created more than 4.5 million jobs, and provided about $96 billion in payroll to

their workers.

Since its creation by the Congress in 1976, the U.S. Small Business Administration’s Office

of Advocacy has served as an independent voice for small business within the federal

government. Essential to that effort is an understanding of minority-owned businesses, which

are often smaller than those of their nonminority counterparts, but have grown rapidly in

numbers and size over the recent past.

The economic well-being of America’s minority communities is inextricably linked to their

involvement in business activities. Business ownership by members of minority groups in

American society has increased rapidly in recent years, and their participation has grown in

other economic activities, including self-employment, business decision making, and the

management of business operations. Minorities in Business, 2001 examines available data

reflecting minority participation in many of these business activities.

Like Women in Business, 2001, published in October 2001, Minorities in Business, 2001

studies the attributes of small business subgroups in an effort to stimulate discussion by

academics and policymakers on such issues as the reasons for their rapid growth and the

barriers to their success. As mandated in its authorizing legislation, the Office of Advocacy

continues its efforts to protect, strengthen, and effectively represent the interests of small,

women-owned, and minority-owned businesses by conducting research, serving as an

advocate in the regulatory process, and publishing the data necessary to increase public

understanding of small business contributions and concerns. Your comments and suggestions

are welcome.

More information is available on the Office of Advocacy website at www.sba.gov/advo. For

specific questions on minorities in business, contact Dr. Ying Lowrey at

ying.lowrey@sba.gov, write the Office of Advocacy, U.S. Small Business Administration,

409 Third Street, S.W., Washington, D.C. 20416, or call (202) 205-6533.

We appreciate your interest in and support for small business.

Susan Walthall

Acting Chief Counsel for Advocacy

U.S. Small Business Administration
Contents

Executive Summary 1

Introduction 3

Demographics 3

The Minority Population 3

Citizenship Status 4

Minorities in the Labor Force 5

Work Experience and Earnings 5

Minority Households and Income Levels 7

Minority-Owned Businesses 7

Hispanic-Owned Businesses by Ethnicity 10

Asian-Owned Businesses by Ethnicity 10

Economic Contributions of Minority-Owned Businesses 12

Contributions of Hispanic-Owned Firms by Ethnicity 13

Contributions of Asian-Owned Firms by Ethnicity 13

Sizes of Minority-Owned Businesses 14

Legal Forms of Ownership 16

Industry Divisions 16

Geographic Distribution 18

The Growth of Minority-Owned Businesses 18

Minority Business Turnover 22

Government Programs Supporting Minority-Owned Businesses 23

Financing Programs 23

Federal Procurement Programs 25

Conclusion 26

Appendix 1. Comparability of SMOBE, 1982, 1987, 1992, and 1997 28

Appendix 2 Definitions of Groups in the SMOBE 29

Appendix Tables 30
Executive Summary

The number of minority-owned firms and their contributions to the American economy have

been increasing rapidly over the recent past. Minority business owners more than doubled

their share of all firms from 1982 to 1997 and increased shares of employment and receipts.

Within the U.S. Small Business Administration’s Office of Advocacy, the Office of Economic

Research produces reports on the economic activity of small, minority- and women-owned

firms and assesses the impacts of regulation on them. Minorities in Business, 2001, reviews

the most recent available statistical information on minority-owned firms, their composition,

industrial distribution, legal forms of ownership, growth, and turnover. It also looks at

socioeconomic characteristics of minority business owners and suggests that while minority

participation is vital to the growth of the U.S economy, significant issues continue to affect

the growth of minority-owned businesses. Among the findings of the report are the following:

Demographics

• Of the 281.4 million people in the United States in 2000, 97.6 percent claimed one

racial identity, including 75.1 percent White, 12.3 percent Black or African American,

3.6 percent Asian, 0.9 percent American Indian and Alaska Native, 0.1 percent Native

Hawaiian and other Pacific Islander, and 5.5 percent other races.

• Another 2.4 percent—more than 6.8 million people—reported that they were

combinations of two or more races.

• Cutting across racial boundaries were more than 35.3 million people—12.5 percent of

the population—who claimed Hispanic or Latino ethnicity.

• Of the total U.S. minority population in 2000, 40.6 percent were Hispanic, 39.0

percent Black, 12.3 percent Asian, and 2.9 percent American Native. Another 17.7

percent of minorities were of other races and 7.9 percent claimed two or more races.

• In 1999, more than half of Asians, Pacific Islanders, Hispanics, and Latinos in the

United States were foreign-born, compared with about 10 percent of Whites, Blacks,

and American Indians.

• Self-employment as a share of each group’s nonagricultural labor force (averaged over

the 1991-1999 decade) was White, 9.7 percent; Black or African American, 3.8

percent; American Indian, Eskimo, or Aleut, 6.4 percent; and Asian or Pacific

Islander, 10.1 percent.

• Of all the minority and nonminority groups, Asians/Pacific Islanders had the highest

rates of higher education.

• Of White households, 15 percent had income of $95,000 or more in 1999; 29 percent

had income below $25,000. The comparable numbers for various other groups were as

follows: Asian or Pacific Islander, 23 percent and 24 percent; Black, 7 percent and 45

percent; and American Indian, Eskimo and Aleut, 6 percent and 43 percent.

Composition 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.
2

• Of minority-owned businesses 39.5 percent were Hispanic-owned, 30.0 percent Asianowned, 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. Among Asians, Koreans had the highest business density, “other Pacific

Islanders” the lowest. Among Hispanics, Spaniards had the highest, Puerto Ricans the

lowest.

• Nonminority-owned firms generated $92,706 in receipts per nonminority person in the

population; the comparable numbers were $28,842 for Asians/Pacific Islanders,

$13,871 for American Natives, $5,276 for Hispanics and $2,055 for Blacks in 1997.

Contributions of Minority-Owned Businesses

• 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 Blackowned firms, and 6.6 percent in American Native-owned firms.

• Minority-owned firms had about $96 billion in payroll in 1997. The average payroll

per employee was roughly $21,000 in the major minority groups and ranged from just

under $15,000 to just over $27,000 in various subgroups of the minority population.

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 government policies designed to curb poverty and promote

minority business ownership.

Business Turnover in Minority-Owned Firms

• 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 nonHispanic-owned businesses, 44.9 percent for White Hispanic-owned businesses, and

34.7 percent for new Black-owned businesses.

Government Programs Promoting Minority-Owned Businesses

• Based upon the average of annual data for the 1990-2000 period, minority groups

received the following shares of the dollar value of 7(a) loans from the U.S. Small

Business Administration: Asian-owned firms, 12.2 percent; Hispanic-owned firms, 5.1

percent; African-American-owned firms, 2.8 percent; and Native-American-owned

firms, 0.6 percent.

• Minority-owned businesses in the 8(a) program received 2.7 percent of federal

contract dollars in FY 2000.
3

Introduction

Just as women are playing a more and more important role in American business, minorityowned businesses have become a fast-growing segment of the U.S. economy. The minorityowned business population grew dramatically over the 1980s and 1990s, more than doubling

their share of U.S. firms from less than 7 percent in 1982 to almost 15 percent by 1997.1 This

companion study to Women in Business, 2001, looks at the demographics of American

minority groups, then offers observations about minority-owned businesses: their

composition, contributions, industry characteristics, legal forms, sizes, growth, and turnover.

The term “minorities” refers here to both race (grouped by, for example, White, Black, or

Asian) and ethnicity (including, for example, groupings for White Hispanic and White nonHispanic). Major race and ethnic groupings, dictated largely by the availability of Census

data, include White, Black or African American, American Indian and Alaska Native, Asian

and Pacific Islander, and Hispanic. Data limitations preclude providing information for every

group on every variable.

Minorities in Business, 2001 is primarily a report on available data; it is not an academic

research or policy study.2 Reviewed here are characteristics of businesses owned by

minorities and nonminorities, and of businesses owned by various racial and ethnic groups.

Demographics

The Minority Population

Of the 281.4 million people in the United States in 2000, 97.6 percent claimed one racial

identity, including 75.1 percent White, 12.3 percent Black or African American, 3.6 percent

Asian, 0.9 percent American Indian and Alaska Native, 0.1 percent Native Hawaiian and

other Pacific Islander, and 5.5 percent other races (Table 1).3 Another 2.4 percent—more than

6.8 million people—reported that they were combinations of two or more races.

Cutting across racial boundaries were more than 35.3 million people—12.5 percent of the

population—who claimed Hispanic or Latino ethnicity. According to estimates in the March

2000 Supplement of the Current Population Survey (CPS), 95 percent of Hispanics and

Latinos were White, 3.3 percent Black, 1.1 percent American Indian and Alaska Native, and

0.6 percent Asian and Pacific Islander.

 

1 Measurement of minority business ownership has changed since 1982. When data are adjusted to include only those groups

covered in 1982, the 1997 minority business share is 15.1 percent. See Appendix 1.

2

For instance, “Race and Gender in the Labor Market,” by Joseph G. Altonji and Rebecca M. Blank (in the 1999 Handbook

of Labor Economics) reviewed the hypothesis that group differences in earning, occupations, and employment patterns are

the consequence of preferences and skill differences. Ethnic patterns, if any, of earning, income, work experience, and

education are examined here briefly, especially with respect to patterns of business ownership and performance.

3U.S. Department of Commerce, Bureau of the Census, Census of Population and Housing, Profile of General Demographic

Characteristics, 2000 (May 2001).
4

Table 1. Racial and Ethnic Characteristics of the U.S. Population, 2000

Number Percent*

Total Population 281,421,906 100.0

One Race 274,595,678 97.6

White 211,460,626 75.1

Black or African American 34,658,190 12.3

American Indian and Alaska Native 2,475,956 0.9

Asian 10,242,998 3.6

Asian Indian 1,678,765 0.6

Chinese 2,432,585 0.9

Filipino 1,850,314 0.7

Japanese 796,700 0.3

Korean 1,076,872 0.4

Vietnamese 1,122,528 0.4

Other Asian 1,285,234 0.5

Native Hawaiian and Other Pacific Islander 398,835 0.1

Native Hawaiian 140,652 -

Guamanian or Chamorro 58,240 -

Samoan 91,029 -

Other Pacific Islander 108,914 -

Other Race 15,359,073 5.5

Two or More Races 6,826,228 2.4

Total Population 281,421,906 100.0

Hispanic or Latino (of Any Race) 35,305,818 12.5

Mexican 20,640,711 7.3

Puerto Rican 3,406,178 1.2

Cuban 1,241,685 0.4

Other Hispanic or Latino 10,017,244 3.6

Not Hispanic or Latino 246,116,088 87.5

White Alone 194,552,774 69.1

Total Householders** 105,480,101 37.5

* Percentage of total population

**Householders represent the person, or one of the people, in whose name the home is owned, being bought, or rented and who is listed as

Person #1 on the census questionnaire. If there is no such person in the household, any adult household member 15 years old or older may

be designated as Person #1.

 Source: U.S. Department of Commerce, Bureau of the Census, 2000 Census of Population and Housing, Profile of General

Demographic Characteristics, 2000.

Citizenship Status

Since before the United States became a nation, the North American continent has been a

magnet for people of many other continents; today, the people of the United States are a

mixture of native peoples, earlier immigrants, and new immigrants from every nation.4 For

many immigrants, the “American Dream” has included the ownership of a small business that

will serve as a gateway to America’s economic mainstream. In a society with constitutionally

protected freedoms, Americans old and new have created the most vibrant entrepreneurial

economy in the world. They take the risks necessary to create jobs, develop innovative

products, and introduce new business practices into the marketplace.

 

4

In labor economics and macroeconomics, immigration is considered an important source of human capital contributing to

the host country’s economic growth. Among many others, George J. Borjas (1999), “The Economic Analysis of

Immigration,” in the Handbook of Labor Economics, Volume 3 and Robert J. Barro and Xavier Sala-I-Martin (1995),

Economic Growth, provide empirical and theoretical analysis on the subject.
5

Many of the most recent U.S. immigrants are Asians, Pacific Islanders, Hispanics, or Latinos

(Table 2).5 In 1999, 20.7 percent of Asians and Pacific Islanders were “native”—born in the

United States or abroad of American parents, while 45.0 percent were foreign-born

naturalized U.S. citizens and another 34.4 percent were foreign-born noncitizens. Similarly, in

1999, 54.5 percent of Hispanics and Latinos (including 18.5 percent foreign-born U.S.

citizens and 36.0 percent foreign-born noncitizens) were born outside of the United States; the

remaining 45.5 percent were native-born U.S. citizens.

Of the other three major minority groups—White; Black or African American; and American

Indian, Eskimo, or Aleut—roughly 90 percent were native citizens born in the United States

or abroad of American parents and about 10 percent were first-generation immigrants. African

Americans were least likely to be new immigrants (8.8 percent).

Minorities in the Labor Force

About 141 million people were in the American labor force in 1999 (Table 3).6 About 118

million (83.5 percent) were White, 17 million (11.8 percent) Black, 5 million (3.9 percent)

Asian or Pacific Islander, and 1 million (0.9 percent) American Indian, Eskimo or Aleut.

Asians and Pacific Islanders had the highest labor force participation rates. Among the

minority groups, American Indians and Alaska natives had the largest share unemployed and

looking for work—almost 9 percent were in this situation.

Education is one of the most important factors in economic growth, according to many

economists.7 The American labor force is well educated on the whole, but average education

levels vary by minority group (Figure 1). Asians and Pacific Islanders were most likely (69

percent) to have college or higher degrees; corresponding figures for other groups were

White, 53 percent; Black or African American, 44 percent; American Indian, Eskimo, or

Aleut, 43 percent; and Hispanic or Latino, 30 percent.

Work Experience and Earnings

Of three subsets of the nonagricultural sector—self-employment, other private sector

employment, and government—most Americans—about 72 percent, worked in the private

sector outside of self-employment in 1999 (Table 4). Another 12 to 20 percent worked in

 

5

The data here include only householders; all other family members are excluded. This was done to capture only

characteristics of the adult population, including business owners or business operators.

6

 See U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement 2000. The labor

force discussed here consists of four groups: employed at work, employed—absent, unemployed on layoff, and unemployed

looking for a job.

7

 Paul M. Romer’s “Increasing Return and Long-Run Growth,” Journal of Political Economy, 94, October 1986, 1002-1037,

initiated a wave of new research on economic growth. This so-called endogenous growth theory virtually credits human

capital and the spillovers of knowledge across producers as the cause of continuous economic growth. Among many others,

David Card (1999), “The Causal Effect of Education on Earnings,” in Handbook of Labor Economics, Volume 3, offers

explanations about the importance of education in earnings.
6

Table 2. Citizenship Status of the U.S. Population (Percent), 1999

Category White

Black or

African

American

American

Indian,

Eskimo, Aleut

Asian or

Pacific

Islander

Hispanic or

Latino Total

Native, Born in the United States 88.1 90.8 88.5 16.5 38.0 86.0

Native, Born in Puerto Rico or U.S. Outlying Area 0.7 0.6 0.4 1.2 5.9 0.7

Native, Born Abroad of American Parent(s) 0.7 0.3 1.4 3.0 1.6 0.8

Foreign Born, U.S. Citizen by Naturalization 4.4 4.0 5.5 45.0 18.5 5.8

Foreign Born, Not a Citizen of the United States 6.0 4.4 4.2 34.4 36.0 6.8

Note: Including Hispanic or Latino as a category results in a double count because Hispanic is an ethnicity that overlaps racial groups.

Because 95 percent of Hispanics or Latinos are White, the major double count occurs when White is one of the categories; it is minor in

conjunction with the other three racial groups.

Source: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement, 2000.

Table 3. Minority Components of the U.S. Civilian Labor Force, 1999

Employed—at Work Employed—Absent Unemployed on Layoff

Unemployed and

Racial Group Looking for Work Total

Number Percent Number Percent Number Percent Number Percent Number Percent

White 108,900,000 92.55 4,163,293 3.54 824,720 0.70 3,780,247 3.21 117,668,260 83.52

Black 14,820,000 89.54 447,170 2.70 132,138 0.80 1,151,054 6.95 16,550,362 11.75

Native American 1,045,232 86.97 44,403 3.69 5,207 0.43 107,011 8.90 1,201,853 0.85

Asian 5,113,832 93.52 139,791 2.56 21,570 0.39 192,765 3.53 5,467,958 3.88

Total 129,879,064 92.19 4,794,657 3.40 983,635 0.70 5,231,077 3.71 140,888,433 100.00

Source: Estimates from U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement 2000.

Figure 1. Educational Levels of Householders by Race or Ethnic Group, 1999

Education Levels of U.S. Householders, 1999

0

5

10

15

20

25

30

35

40

45

50

Percent

Less than 9th Grade 6 6 14 6 25

9-12th 41 50 43 26 45

College 44 39 40 50 27

Post-Graduate 9 5 3 19 3

White Black or African 

American 

Amer Indian, 

Eskimo or Aleut

Asian or Pacific 

Islander

Hispanic or 

Latino
7

Table 4. Major Work Experience of the Nonagricultural Work Force by Race, 1991-1999

(Percent)

Self-Employment Other Private Sector Government

Year

White Black

American

Indian,

Eskimo or

Aleut

Asian or

Pacific

Islander

White Black

American

Indian,

Eskimo or

Aleut

Asian or

Pacific

Islander

White Black

American

Indian,

Eskimo or

Aleut

Asian or

Pacific

Islander

1999 9.1 4.5 4.6 9.6 73.2 73.8 71.8 76.3 14.0 19.5 20.1 12.5

1998 9.2 3.9 4.5 10.0 73.5 75.0 72.9 75.6 13.8 18.8 18.6 12.1

1997 9.9 3.6 6.8 10.9 73.1 74.9 71.6 74.1 13.5 19.8 19.3 12.6

1996 9.9 3.9 7.0 10.8 72.8 73.9 69.3 74.7 13.6 20.2 20.3 12.6

1995 9.4 3.8 6.4 9.4 72.5 73.1 68.9 74.7 14.0 20.3 21.7 13.5

1994 9.8 3.5 5.7 8.8 71.4 71.9 69.0 73.7 14.7 21.8 21.8 14.9

1993 10.0 3.8 8.1 10.2 70.8 70.1 64.7 72.3 15.0 23.0 24.7 15.3

1992 9.9 3.5 6.8 9.6 70.9 70.2 63.9 71.2 14.9 22.7 22.9 15.9

1991 9.7 3.3 7.7 11.2 71.5 71.3 67.1 72.0 14.7 22.2 21.6 13.9

Average 9.7 3.8 6.4 10.1 72.2 72.7 68.8 73.8 14.2 20.9 21.2 13.7

Source: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement, 1992-2000.

government. Self-employment rates ranged from 4.5 percent of Blacks to 9.6 percent of

Asians or Pacific Islanders. However, Blacks have increased their self-employment rate since

1991, whereas the rate of self-employment has dropped for Whites, American Natives, and

Asians and Pacific Islanders.

Self-employment was the major earning source for about the same shares of Whites and

Asians—6.4 to 6.5 percent (Table 5). A smaller but growing share of African Americans (3.4

percent) relied on self-employment for their income in 1999.

Minority Households and Income Levels

All groups had similar shares of households at the middle income levels (Table 6 and Figure

2). However, Blacks, American Indians, and a group that crosses racial boundaries, Hispanics,

had larger shares at lower income levels. Asians and Whites had larger shares at higher

income levels.

Minority-Owned Businesses

Minorities made up about 30.9 percent of the total U.S. population in 2000 but owned just

14.6 percent of all U.S. businesses in 1997. 8 Of the 20.8 million U.S. firms in 1997,

1,199,896 were owned by Hispanics, 912,960 by Asians and Pacific Islanders, 823,499 by

 

8 U.S. Department of Commerce, Bureau of the Census, Survey of Minority-Owned Business Enterprises (SMOBE) 1982,

1987, 1992 and 1997. With technical assistance from the Bureau of the Census, the Office of Advocacy compiled the four

volumes of data and included C corporations for the first time in the 1997 SMOBE. To make the data comparable, however,

C corporations will be excluded from multi-year comparisons of SMOBE data. Note that population figures used here are for

2000 and firm figures for 1997: the different years of data will create some distortions in comparisons.
8

Table 5. Major Earning Sources of the U.S. Nonagricultural Work Force by Race, 1991-1999

(Percent)

Wage and Salary Self-Employment

Year White Black

American

Indian,

Eskimo or

Aleut

Asian or

Pacific

Islander

White Black

American

Indian,

Eskimo or

Aleut

Asian or

Pacific

Islander

1999 92.8 96.5 95.1 93.2 6.4 3.4 4.1 6.5

1998 92.5 96.8 95.4 92.3 6.7 3.2 3.7 7.3

1997 92.3 96.9 94.4 92.1 6.9 3.0 5.0 7.1

1996 93.8 97.4 95.2 93.6 5.6 2.5 4.2 5.9

1995 93.4 97.1 95.4 95.0 5.9 2.8 4.1 4.9

1994 91.7 96.9 94.2 93.9 7.2 3.1 5.0 5.9

1993 91.4 96.5 92.2 92.2 7.3 3.4 7.3 7.2

1992 91.4 96.7 92.5 91.9 7.4 3.2 6.7 7.3

1991 91.6 96.8 90.5 91.3 7.3 3.1 7.5 8.3

Average 92.3 96.8 93.9 92.8 6.7 3.1 5.3 6.7

Source: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement, 1992-2000.

Table 6. Income Distribution of Householders by Race, 1999

White Black

American Indian,

Eskimo or Aleut

Asian or Pacific

Income Category Islander Total

Number % Number % Number % Number % Number %

Under $2500 1,155,917 1 427,240 3 30,917 4 102,646 3 1,716,720 2

$2,500-$14,999 11,799,531 13 3,239,511 25 204,031 24 356,224 11 15,599,298 15

$15,000-$24,999 12,149,979 14 2,111,892 16 131,458 16 325,761 10 14,719,090 14

$25,000-$34,999 11,041,632 13 1,746,177 14 93,157 11 347,436 10 13,228,403 13

$35,000-$44,999 9,668,406 11 1,387,788 11 103,161 12 361,420 11 11,520,773 11

$45,000-$54,999 8,304,526 9 1,005,219 8 85,736 10 282,143 8 9,677,625 9

$55,000-$64,999 6,981,263 8 817,660 6 59,626 7 254,971 8 8,113,520 8

$65,000-$74,999 5,553,068 6 481,311 4 30,281 4 212,642 6 6,277,300 6

$75,000-$84,999 4,738,461 5 427,150 3 28,767 3 206,705 6 5,401,083 5

$85,000-$94,999 3,358,777 4 293,289 2 30,233 4 117,059 4 3,799,357 4

$95,000 and Over 12,929,189 15 912,055 7 50,661 6 770,474 23 14,657,343 14

Total 87,680,749 100 12,849,292 100 848,027 100 848,027 100 104,710,512 100

Source: U.S. Department of Commerce, Bureau of the Census, Current Population Survey, March Supplement 2000.

Blacks, and 197,300 by American Indians and Alaska Natives (Table 7). Blacks and

Hispanics were underrepresented in the minority business population: Hispanic Americans

counted for about 12.5 percent of the population in 2000, but owned only 5.8 percent of U.S.

firms in 1997, while Blacks or African Americans constituted 12.3 percent of the U.S.

population but only 4.0 percent of business owners. Asians and Native Americans, on the

other hand, had business representation equal to or broader than their numbers in the

population would suggest: American Indians and Alaska Natives composed 0.9 percent of the

population and 0.9 percent of businesses, while Asians and Pacific Islanders constituted 3.6

percent of the population and 4.4 percent of businesses.
9

Figure 2. Income Distribution of Householders by Race, 1999

Table 7. Firms, Employment, and Payroll by Race and Ethnic Origin, 1997

All Firms Firms with Employees Number of Employees Total Payroll

Number Percent Number Percent Number Percent Millions of

Dollars

Percent

Total U.S. Firms 20,821,934 100.00 5,295.151 100.00 103,359,815 100.00 2,936,493 100.00

Nonminority-Owned Firms 17,782,901 85.40 4,679,929 88.38 98,845,116 95.63 2.840.964 96.75

All Minority-Owned Firms 3,039,033 14.60 615,222 11.62 4,514,699 4.37 95,529 3.25

 Black-Owned Firms 823,499 3.96 93,235 1.76 718,341 0.69 14,322 0.48

 Hispanic-Owned Firms 1,199,896 5.76 211,885 4.00 1,388,746 1.34 29,830 1.02

 American Native-Owned Firms 197,300 0.94 33,277 0.63 298,661 0.28 6,624 0.23

 Asian-Owned Firms 912,959 4.38 290,000 5.48 2,203,080 2.13 46,180 1.57

Note: The percentages may not sum to 100 because Hispanics may be of any race and may therefore be double counted.

Source: U.S. Department of Commerce, Bureau of the Census, SMOBE, 1997.

Annual Household-Income Distribution, 

by Householders of various Races, 1999

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Under

$2500

$2,500-

$14,999

$15,000-

$24,999

$25,000-

$34,999

$35,000-

$44,999

$45,000-

$54,999

$55,000-

$64,999

$65,000-

$74,999

$75,000-

$84,999

$85,000-

$94,999

$95,000

& Over

%

White 

Black 

American Indian, Eskimo or Aleut

Asian or Pacific Islander

Hispanic

Source: U.S. Department of Commerce, Bureau of the Cenuss, Current Population Survey, March Supplement 2000.
10

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—that is, there was a nonminority-owned business for every 10.1

people in the nonminority population (Table 8).9 In the minority population, business density

was 12.6 for American Indians and Alaska Natives, 11.7 for Asians and Pacific Islanders,

29.4 for Hispanics, and 42.1 for Blacks. Business sales per person in the population totaled

$92,706 per nonminority person, $28,842 for Asians and Pacific Islanders, $13,871 for

American Indians and Alaska Natives, $5,276 for Hispanics, and $2,055 for Blacks.

Hispanic-Owned Businesses by Ethnicity

Hispanics or Latinos of any race in the United States made up 12.5 percent of the total

population and 40.6 percent of the total minority population in 2000 and owned 5.8 percent of

all U.S. business firms and 39.5 percent of all minority-owned firms (Tables 1 and 9). More

than 1 million Hispanic-owned businesses existed in the United States in 1997, of which 39.3

percent were owned by Mexicans, 23.9 percent by Hispanic Latin Americans, 10.4 percent by

Cubans, 5.8 percent by Puerto Ricans, 4.8 percent by Spaniards, and 15.7 percent by other

Spanish, Hispanic, or Latino business owners. Business density or business participation was

at 29.4 Hispanic members of the population per business. Spaniards, Cubans, and Hispanic

Latin Americans were strongly represented in the business population compared with other

Hispanic and Latino groups (Table 10). Business sales and receipts per member of the

Hispanic/Latino population also ranged widely from a record high of $159,775 per Spaniard

to $2,201 per Puerto Rican in the population. The low share of Spaniards in the Hispanic

population—0.3 percent—may be part of the explanation for the large disparity in the data.

Asian-Owned Businesses by Ethnicity

Asians and Pacific Islanders in the United States made up 3.6 percent of the total population

and 12.3 percent of the total minority population in 2000, and owned 4.4 percent of all U.S.

business firms and 30.0 percent of all minority-owned firms in 1997 (Tables 1 and 11). Of

912,959 Asian and Pacific Islander-owned businesses in 1997, Chinese business owners

owned 27.7 percent; Asian Indians, 18.3 percent; Koreans, 14.9 percent; Vietnamese, 10.7

percent; Japanese, 9.4 percent; Filipinos, 9.3 percent; Hawaiians, 1.7 percent; other Asians,

7.8 percent; and other Pacific Islanders, 1.7 percent (Table 11).10 Business density rates

averaged 11.7 for all Asian businesses, higher than the national average of 13.5 (Table 12).

By Asian ethnic group, the rates ranged from strong representation in the business population

by Koreans, at 7.9, to a much lower participation rate for other Pacific Islanders at 67.5.

Business sales and receipts per member of the population ranged widely among ethnic groups,

from Japanese at $54,903 to Filipino at $5,987.

 

9Business density is calculated here using population figures for 2000 and firm figures for 1997. The different years of

population and firm data will create some distortion in this approximate figure.

10 Other Asian includes other Asian alone, or two or more Asian categories.
11

Table 8. Minority Population, 2000, Minority-Owned Firms and Receipts, 1997

Race/Ethnic Group Population

Number Percent1

Total Receipts

(Thousands of Dollars)

Business

Density2

Receipts per Person

in Population

(Dollars)3

All U.S. 281,421,906 100.0 18,553,243,000 13.5 65,927

Nonminority 194,552,774 69.1 18,036,263,127 10.1 92,706

All Minorities 86,869,132 30.9 516,979,920 28.6 5,951

Black 34,658,190 12.3 71,214,662 42.1 2,055

Hispanic 35,305,818 12.5 186,274,581 29.4 5,276

American Native 2,475,956 0.9 34,343,907 12.6 13,871

Asians 10,641,833 3.78 306,932,982 11.7 28,842

1

Percentages are a share of U.S. total.

2Business density is defined here as the number of individuals in the population (2000) per firm owned by a member of the population

(1997). The different years of population and firm data will create some distortion in this approximate figure.

3Receipts per person is defined as the 1997 dollar value of business sales and receipts per person of population (2000).

Sources: U.S. Department of Commerce, Bureau of the Census, firm data from SMOBE, population data 2000 Census of Population.

Table 9. Hispanic-Owned Firms, Employment, and Payroll by Ethnicity, 1997

All Firms Firms with Employees Number of Employees Total Payroll

Race/Ethnic Group Number Percent* Number Percent* Number Percent* Millions of

Dollars

Percent*

Total U.S. Firms 20,821,934 100.00 5,295.151 100.00 103,359,815 100.00 2,936,493 100.00

Nonminority 17,782,901 85.40 4,679,929 88.38 98,845,116 95.63 2.840.964 96.75

All Minority 3,039,033 14.60 615,222 11.62 4,514,699 4.37 95,529 3.25

All Hispanic 1,199,896 5.76 211,885 4.00 1,388,746 1.34 29,830 1.02

 Cuban 125,273 10.4 30,203 14.3 176,428 12.7 4,163 14.0

 Mexican 472,033 39.3 90,755 42.8 695,372 50.1 13,015 43.6

 Puerto Rican 69,658 5.8 10,976 5.2 61,509 4.4 1,497 5.0

 Spaniard 57,160 4.8 12,590 5.9 76,338 5.5 2.046 6.9

 Hispanic Latin American 287,314 23.9 42,916 20.3 238,612 17.2 5,863 19.7

 Other Hispanic 188,458 15.7 24,445 11.5 140,487 10.1 3,247 10.9

*Percentages for first four lines are a share of total U.S. firms; percentages for Hispanic subgroups are a share of Hispanic-owned firms.

Note: The percentages may not sum to 100 because Hispanics may be of any race and may therefore be double counted.

Source: U.S. Department of Commerce, Bureau of the Census, SMOBE, 1997.

Table 10. Hispanic Population, 2000, and Hispanic-Owned Firms and Receipts, 1997, by

Ethnicity

Race/Ethnic Group Population

Number Percent1

Total Receipts

(Thousands of Dollars)

Business

Density2

Receipts per Person

in Population

(Dollars)3

All U.S. 281,421,906 100.0 18,553,243,000 13.52 65,927

Non-Hispanic 246,116,088 87.4 18,366,968,419 13.84 74,627

All Hispanic 35,305,818 12.5 186,274,581 29.42 5,276

Cuban 1,235,704 3.5 26,492,208 9.86 21,439

Mexican, Mexican American 20,653,904 58.5 73,706,753 43.76 3,569

Puerto Rican 3,389,359 9.6 7,461,069 48.66 2,201

Spaniard 105,917 0.3 16,922,913 1.85 159,775

Hispanic Latin American 3,036,300 8.6 40,997,923 10.57 13,503

Other Spanish, Hispanic, Latino 6,884,635 19.5 20,693,715 36.53 3,006

1

Percentages for first three lines are a share of total U.S. firms; percentages for Hispanic subgroups are a share of Hispanic-owned firms.

2Business density is defined here as the number of individuals in the population (2000) per firm owned by a member of the population

(1997). The different years of population and firm data will create some distortion in this approximate figure.

3Receipts per person is defined as the 1997 dollar value of business sales and receipts per person of population.

Sources: U.S. Department of Commerce, Bureau of the Census, firm data from SMOBE, population data 2000 Census of Population.
12

Table 11. Asian-Owned Firms, Employment, and Payroll by Ethnicity, 1997

All Firms Firms with Employees Number of Employees Total Payroll

Race/Ethnic Group Number Percent* Number Percent* Number Percent* Millions

of Dollars

Percent*

All U.S. Firms 20,821,934 100.00 5,295.151 100.00 103,359,815 100.00 2,936,493 100.00

Nonminority 17,782,901 85.40 4,679,929 88.38 98,845,116 95.63 2.840.964 96.75

All Minority 3,039,033 14.60 615,222 11.62 4,514,699 4.37 95,529 3.25

All Asian/Pacific Islander 912,959 4.38 290,000 5.48 2,203,080 2.23 46,180 1.63

Asian Indian 166,737 18.26 67,189 23.17 490,629 22.27 12,586 27.25

Chinese 252,577 27.67 90,582 31.24 691,757 31.40 12,945 28.03

Filipino 84,534 9.26 14,581 5.03 110,130 5.00 2,667 5.78

Japanese 85,538 9.37 23,309 8.04 262,223 11.90 7,107 15.39

Korean 135,571 14.85 50,076 17.27 333,649 15.14 5,789 12.54

Vietnamese 97,764 10.71 18,948 6.53 79,035 3.59 1,166 2.52

Other Asian 70,868 7.76 22,292 7.69 201,610 9.15 3,136 6.79

Hawaiian 15,544 1.70 2,023 0.70 20,698 0.94 498 1.08

Other Pacific Islander 3,826 0.42 1,000 0.34 13,349 0.61 286 0.62

*Percentages for first four lines are a share of total U.S. firms; percentages for Asian subgroups are a share of Asian-owned businesses.

Source: U.S. Department of Commerce, Bureau of the Census, SMOBE, 1997.

Table 12. Asian and Pacific Islander Population, 2000, and Firms and Receipts, 1997, by

Ethnicity

Race/Ethnic Group Population

Number Percent1

Total Receipts

(Thousands of Dollars)

Business

Density2

Receipts per Person

in Population

(Dollars)3

All U.S. Firms 281,421,906 100.00 18,553,243,000 13.5 65,927

Non-Asian and Pacific Islander 270,780,073 96.22 18,246,310,018 13.6 67,384

All Asian and Pacific Islander 10,641,833 3.78 306,932,982 11.7 28,842

Asian Indian 1,678,765 15.78 67,503,357 10.1 40,210

Chinese 2,432,585 22.86 106,196,794 9.6 43,656

Filipino 1,850,314 17.39 11,077,885 21.9 5,987

Japanese 796,700 7.49 43,741,051 9.3 54,903

Korean 1,076,872 10.12 45,936,497 7.9 42,657

Vietnamese 1,122,528 10.55 9,322,891 11.5 8,305

Other Asian 1,285,234 12.08 19,016,149 18.1 14,796

Hawaiian 140,652 1.32 2,250,153 9.0 15,998

Other Pacific Islander 285,183 2.43 1,888,205 67.5 7,313

1

Percentages for first three lines are a share of total U.S. firms; percentages for Asian subgroups are a share of Asian-owned businesses.

2Business density is defined here as the number of individuals in the population (2000) per firm owned by a member of the population

(1997). The different years of population and firm data will create some distortion in this approximate figure.

3Receipts per person is defined as the 1997 dollar value of business sales and receipts per person of population.

Sources: U.S. Department of Commerce, Bureau of the Census, firm data from SMOBE, population data 2000 Census of Population.

Economic Contributions of Minority-Owned Firms

Like other businesses, minority-owned businesses produce goods and services, create

innovations, absorb labor and generate jobs, provide wages and salaries, and contribute to the

support of government services through taxes. All of these business activities are important

contributions to the dynamic American economy.11

 

11 Milken Institute points out that “minority communities represent the most potent potential market in the American

economy. Minority groups are experiencing higher rates of population growth than whites. By 2050, minorities are projected

to comprise almost 50 percent of the U.S. population. Minority businesses are growing even faster than the population in

terms of both numbers of new firms and revenues.” (See February 1999 Milken Institute Policy Brief.)
13

In 1997, 615,222 minority-owned firms with paid employees had 4,514,699 workers and

provided payroll of about $95.5 billion (Table 7). Of all employees hired by minority-owned

firms, 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. Asian-owned

firms contribute 48.3 percent of total minority business payroll; Hispanic-owned firms, 31.2

percent; Black-owned firms, 15.0 percent; and American Native-owned firms, 6.9 percent.

Most U.S. firms are small; only 25.4 percent of firms had paid employees in 1997 (Table 13).

Nearly one-third—31.8 percent—of Asian-owned firms had paid employees; smaller shares

ranging from 11.3 percent to 17.7 percent of other minority-owned businesses had paid

employees. On average, each nonminority-owned firm with paid employees employed 21

workers in 1997. The employment numbers in minority-owned firms with paid employees

were smaller, ranging from 7 to 9 on average. Payroll per employee in 1997 averaged $28,742

in nonminority-owned firms and ranged between about $20,000 and $23,000 in minorityowned firms.

Contributions of Hispanic-Owned Firms, by Ethnicity

The 211,885 Hispanic-owned firms with paid employees in the United States had 1,388,746

workers and provided about $29.8 billion in payroll in 1997 (Table 9). Half of employees

hired by Hispanic-owned firms were in firms owned by Mexican or Mexican-American

business owners; between 10 and 17 percent each were in Hispanic Latin American-, Cuban-,

and Other Spanish, Hispanic, Latino-owned firms; and about 5 percent each were in firms

owned by Spanish and Puerto Rican business owners. Each ethnic group contributed similar

shares of payroll.

Most Hispanic-owned firms are small; just 17.7 percent had paid employees in 1997 (Table

14). By ethnic group, the share of firms that had employees ranged from about 13.0 percent of

“other Hispanic, Spanish, Latino-owned firms” to 24.1 percent of Cuban-owned firms.

Hispanic-owned employer firms had about 7 workers per firm in 1997. The average payroll

per employee was $21,480. Among Hispanic-owned firms, those owned by Spaniards

provided the highest average payroll, $26,798; Mexican-owned firms had the most employees

per firm, but paid the lowest, $18,717.

Contributions of Asian-Owned Firms, by Ethnicity

The 290,000 Asian-owned firms with paid employees employed 2,203,080 and provided

about $46.1 billion in payroll (Table 11). Of employees hired by Asian-owned firms, 31.40

percent were in Chinese-owned firms, 22.3 percent in Asian Indian-owned firms, 15.1 percent

in Korean-owned firms, 11.9 percent in Japanese-owned firms, 9.2 percent in Other Asianowned firms, 5.0 percent in Filipino-owned firms, 3.6 percent in Vietnamese-owned firms,

0.9 percent in Hawaiian-owned firms, and 0.6 percent in Other Pacific Islander-owned firms.

Payroll was distributed similarly by ethnicity.
14

Table 13. Contributions of Minority-Owned Firms, 1997

Race or Ethnicity

Firms with Employees

(Percent of Group Firms)

Employees per

Firm1

Payroll per Employee

(Dollars)2

All U.S. Firms 25.43 20 28,410

Nonminority-Owned Firms 26.32 21 28,742

All Minority-Owned Firms 20.24 7 21,160

 Black-Owned Firms 11.32 8 19,938

 Hispanic-Owned Firms 17.66 7 21,480

 American Native-Owned Firms 16.87 9 22,180

 Asian or Pacific Islander-Owned Firms 31.76 7 23,070

1. A measure of the average size of firms in the group.

2. This measure may be an indicator of the skills or knowledge levels required for jobs these firms provide.

Source: U.S. Small Business Administration, Office of Advocacy calculations based on U.S. Department of Commerce, Bureau of the

Census, SMOBE, 1997.

Table 14. Contributions of Hispanic-Owned Firms, 1997

Race or Ethnicity

Firms with Employees

(Percent of Group Firms)

Employees per

Firm1

Payroll per Employee

(Dollars)2

All Hispanic-Owned Firms 17.66 7 21,480

Cuban-Owned Firms 24.11 6 23,594

Mexican, Mexican American-Owned Firms 19.23 8 18,717

Puerto Rican-Owned Firms 15.76 6 24,336

Spaniard-Owned Firms 22.03 6 26,798

Hispanic Latin American-Owned Firms 14.94 6 24,570

Other Spanish, Hispanic, Latino-Owned Firms 12.97 6 23,114

1. A measure of the average size of firms in the group.

2. This measure may be an indicator of the skills or knowledge levels required for jobs these firms provide.

Source: U.S. Small Business Administration, Office of Advocacy calculations based on U.S. Department of Commerce, Bureau of the

Census, SMOBE, 1997.

Asian firms are small, although larger, on average, than Hispanic-owned firms: 31.8 percent

had paid employees in 1997 (Table 15). Asian Indian-, Korean -, and Chinese-owned firms

were larger, on average: their employer shares were 40.3 percent, 36.9 percent, and 35.9

percent, respectively. Asian-owned firms with paid employees had 7 employees, on average,

in 1997. The employment numbers varied by Asian ethnicity from 13 in other Pacific

Islander-owned firms to 4 in Vietnamese-owned firms. Four Asian ethnic groups—Japanese

at $27,102; Asian Indian, $25,652; Filipino, $24,220; and Hawaiian, $24,058—paid more

than the $23,070 average for Asian-owned firms.

Sizes of Minority-Owned Firms

Most minority-owned businesses have no employees, including 89 percent of Black-owned

businesses, 83 percent of American Indian- and Alaska Native- owned, 82 percent of

Hispanic-owned, and 68 percent of Asian- and Pacific-Islander-owned firms. Of firms with

paid employees, almost all had fewer than 100 employees: 98.1 percent of those owned by

nonminorities and about 99 percent of those owned by the various minority groups (Table 16).
15

Table 15. Contributions of Asian-Owned Firms, 1997

Race or Ethnicity

Firms with Employees

(Percent of Group Firms)

Employees per

Firm1

Payroll per Employee

(Dollars)2

All Asian and Pacific Islander-Owned Firms 31.76 7 23,070

Asian Indian-Owned Firms 40.30 7 25,652

Chinese-Owned Firms 35.86 8 18,713

Filipino-Owned Firms 17.25 8 24,220

Japanese-Owned Firms 27.25 11 27,102

Korean-Owned Firms 36.94 7 17,352

Vietnamese-Owned Firms 19.38 4 14,747

Other Asian-Owned Firms 31.46 9 15,554

Hawaiian-Owned Firms 13.01 10 24,058

Other Pacific Islander 26.14 13 21,447

1. A measure of the average size of firms in the group.

2. This measure may be an indicator of the skills or knowledge levels required for jobs these firms provide.

Source: U.S. Small Business Administration, Office of Advocacy calculations based on U.S. Department of Commerce, Bureau of the

Census, SMOBE, 1997.

Table 16. Employment Sizes of Minority-Owned Businesses, 1997

Group of Business Firms All Firms

Firms with No

Paid Employees

No

Employees* 1 - 9 10-19 20-99

100 or

more

All U.S. Firms 20,821,934 15,526,783 619,990 3,536,055 570,401 473,051 95,654

Nonminority-Owned Firms 17,782,901 13,102,972 529,819 3,109,125 515,700 434,062 91,222

All Minority-Owned Firms 3,039,033 2,423,811 90,171 426,930 54,701 38,989 4,432

Black-Owned Firms 823,499 730,264 15,217 63,996 7,171 5,961 889

Hispanic-Owned Firms 1,199,896 988,012 29,118 149,454 19,860 12,330 1,121

American Native-Owned Firms 197,300 164,023 3,705 23,928 2,932 2,357 355

Asian and Pacific Islander-Owned Firms 912,959 622,961 43,658 199,117 25,820 19,319 2,084

Share of Total Minority-Owned Firms (Percent)

Black-Owned Firms 27.10 30.13 16.88 14.99 13.11 15.29 20.06

Hispanic-Owned Firms 39.48 40.76 32.29 35.01 36.31 31.62 25.29

American Native-Owned Firms 6.49 6.77 4.11 5.60 5.36 6.05 8.01

Asian and Pacific Islander-Owned Firms 30.04 25.70 48.42 46.64 47.20 49.55 47.02

*“No Employees” refers to firms reporting annual payroll that did not report employees on their payroll during the specified period in 1997.

Source: The Office of Advocacy based on US Census Bureau 1997 Economic Census, Survey of Minority-Owned Business Enterprises.

Of minority-owned firms with fewer than 100 employees, about 47 percent were owned by

Asians or Pacific Islanders, about 35 percent by Hispanics, about 15 percent by Blacks and

about 6 percent by American Indians and Alaska natives. Shares of firms with more than 100

employees were similar, although Blacks and American natives were more strongly

represented in the larger firms. (Table 16).

Measured by receipts size, Black-owned businesses in particular were much more likely to be

small: Black-owned firms constituted more than 30 percent of the minority-owned firms

earning less than $25,000 in receipts, but just 10 percent of those earning $500,000 or more

(Table 17). Hispanic and American Native-owned firms also had somewhat larger shares of

the firms in the smaller receipts size categories. Asian-owned firms, on the other hand,
16

Table 17. Receipts Sizes of Minority-Owned Businesses, 1997

Group of Business Firms

Total Receipts

($1000)

Firms with

<$5,000

$5,000-

$9,999

$10,000-

$24,999

$25,000-

$99,999

$100,000-

$499,000

$500,000

or more

Nonminority-Owned Firms 18,036,263,127 3,932,476 2,273,136 2,991,559 3,854,217 3,022,738 1,708,875

All Minority-Owned Firms 516,979,920 692,861 487,107 627,591 648,895 413,019 169,460

Black-Owned Firms 71,214,662 247,536 156,255 188,811 152,147 61,567 17,182

All Hispanic-Owned Firms 186,274,582 263,071 212,214 273,321 252,430 143,975 54,256

American Native-Owned Firms 34,343,907 50,433 30,387 41,515 42,024 23,794 9,147

All Asian and Pacific Islander-Owned Firms 306,932,982 151,751 107,890 147,311 221,949 192,198 91,860

Share of Total Minority-Owned Firms (Percent)

Black-Owned Firms 13.78 35.73 32.08 30.09 23.45 14.91 10.14

All Hispanic-Owned Firms 36.03 37.97 43.57 43.55 38.90 34.86 32.02

American Native-Owned Firms 6.64 7.28 6.24 6.61 6.48 5.76 5.40

All Asian and Pacific Islander-Owned Firms 59.37 21.90 22.15 23.47 34.20 46.53 54.21

Note: Because Hispanics can be of any race, the sum of various minority groups’ receipts will not equal total minority receipts.

Source: The Office of Advocacy based on US Census Bureau 1997 Economic Census, Survey of Minority-Owned Business Enterprises.

represented about 22 percent of the minority-owned firms with less than $25,000 in receipts,

but more than 54 percent of those with receipts of $500,000 or more.

Legal Forms of Ownership

Minorities make various choices of legal forms for their businesses. Of all U.S. businesses,

72.6 percent are individual proprietorships, 11.5 percent are C corporations, 9.5 percent are S

corporations, 5.9 percent are partnerships, and .5 percent are other (Table 18). All minority

groups except Asians were much more likely than average to choose the proprietorship form

of organization, doing so more than 85 percent of the time. They were less likely to choose

any of the other forms. Asians were an exception, being slightly less likely than average to

form a proprietorship and more likely to incorporate: 71.0 percent of Asian-owned businesses

were sole proprietorships, but 14.0 percent were C corporations and 10.2 percent were S

corporations.

Probably because most new and small businesses are sole proprietorships, this form of

ownership has been observed to have higher proportions of business closure and low business

income. Higher proportions of sole proprietorships in the Hispanic, American Native, and

Black business communities have lower average business receipts and lower shares of firms

with paid employees (Tables 7 and 13).

Industry Divisions

Minority-owned firms were well represented in many major industries in 1997 (Table 19). At

the national level, the largest proportion (42.7 percent) of businesses were in the services
17

Table 18. Minority-Owned Firms by Legal Form of Organization, 1997

Legal Form of Total Black Hispanic American Native Asian/Pacific Islander

Organization Number % Number % Number % Number % Number %

Total 20,821,934 100.00 823,499 3.95 1,199,896 5.76 197,300 0.95 912,960 4.38

C Corporation 2,390,478 11.48 42,729 5.19 78,463 6.54 9,379 4.75 127,480 13.96

 S Corporation 1,979,425 9.51 29,410 3.57 65,244 5.44 9,618 4.87 92,877 10.17

Sole Proprietorship 15,122,882 72.63 737,076 89.51 1,027,411 85.63 173,385 87.88 648,337 71.01

Partnership 1,226,455 5.89 13,595 1.65 27,998 2.33 4,626 2.34 40,854 4.47

Other 102,694 0.49 688 0.08 781 0.07 293 0.15 3,412 0.37

Source: U.S. Small Business Administration, Office of Advocacy, based upon data published by the U.S. Department of Commerce, Bureau

of the Census, 1997 Survey of Women and Minority-Owned Businesses.

Table 19. Minority-Owned Firms by Industry, 1997

Major Industry Total Black Hispanic American Native Asian/Pacific Islander

Number % Number % Number % Number % Number %

All 20,821,934 823,499 3.95 1,199,896 5.76 197,300 0.95 912,960 4.38

Agriculture 496,164 2.38 12,464 1.51 40,040 3.34 8,942 4.53 12,988 1.42

Mining 126,809 0.61 231 0.03 1,909 0.16 947 0.48 660 0.07

Construction 2,333,424 11.21 56,508 6.86 152,573 12.72 27,435 13.91 27,711 3.04

Manufacturing 688,782 3.31 10,447 1.27 25,552 2.13 6,717 3.40 23,242 2.55

Transportation 919,570 4.42 71,586 8.69 84,554 7.05 6,291 3.19 37,501 4.11

Wholesale 797,856 3.83 8,120 0.99 31,480 2.62 4,365 2.21 50,400 5.52

Retail 2,889,041 13.87 87,568 10.63 155,061 12.92 14,768 7.49 195,691 21.43

Finance 2,237,675 10.75 37,934 4.61 56,629 4.72 4,616 2.34 68,765 7.53

Services 8,891,023 42.70 437,646 53.14 500,449 41.71 34,144 17.31 406,010 44.47

Unclassified 1,480,003 7.11 101,128 12.28 151,931 12.66 89,243 45.23 90,509 9.91

Source: U.S. Small Business Administration, Office of Advocacy, from data published by the U.S. Department of Commerce, Bureau of the

Census, 1997 Survey of Women and Minority-Owned Businesses.

industry, followed by retail trade (14.0 percent), construction (11.2 percent) and finance,

insurance, and real estate (10.8 percent).

Hispanic-owned businesses were distributed much like the average business distribution in

most major industries, except mining, and finance, insurance, and real estate. Black-owned

firms tended to be concentrated in the transportation, communications and public utilities and

service sectors. A large share of American Indian-owned businesses were in the

“unclassified” category.12 American Indian-owned firms were also concentrated in

agricultural, construction and manufacturing industries. Asian- and Pacific-Islander-owned

firms tended to be engaged in greater than average proportions in retail and wholesale trade

and services.

 

12 The unclassified category may reflect a large proportion of businesses in gambling. For figures, see

http://www.indiangaming.org/library/index.html .
18

Geographic Distribution

Not surprisingly, minority-owned businesses are most prevalent in the southern states and in

urban areas where minority populations tend to be larger. In 1997, California, Florida, Texas,

New Mexico, Hawaii, Maryland, and the District of Columbia all had concentrations of

minority-owned businesses exceeding 20 percent (Figure 3). In sheer numbers, New York had

the largest number of Black-owned businesses—more than 86,000; Hawaii had the largest

number of businesses owned by Pacific Islanders—nearly 7,000; and California had the

largest numbers of minority-owned businesses owned by Hispanics (336,000), Asians

(313,000), and American Indians (27,000) (Table A.5).

The Growth of Minority-Owned Businesses

The number of minority-owned businesses has grown explosively since 1982 (Table 20).

Fewer than 7 percent of U.S. firms were minority-owned in 1982 (Figure 4). Minority-owned

firms’ share more than doubled to almost 15 percent in 1997.13 Minority-owned firms

increased at rates between three and seven times those of nonminority-owned firms, by 55

percent from 1982 to 1987, 68 percent between 1987 and 1992, and 30 percent from 1992 to

1997.

One reason for minority-owned firm growth is simply the rate of minority population growth.

The small growth rates of nonminority-owned firms match the low growth rates of the

nonminority population for the three quinquennial periods (Figure 5).14 For the same periods,

the rapid growth rates of minority-owned firms parallel growth rates in the minority

population, particularly for Hispanics and Asians and Pacific Islanders, whose population

growth was on average four times the total U.S. population growth rate.15 There are many

reasons for the growth in minority-owned businesses, but at least some of the increase may

also be credited to long-term efforts to encourage minority business growth through various

initiatives at all levels of government.16

 

13 Changes in the Survey of Minority-Owned Business Enterprises (SMOBE) database over the years have made comparisons

difficult. When data are adjusted to include only those groups covered in 1982, the 1997 minority business share is 15.1

percent (Figure 4). See Appendix 1for a description of the SMOBE database.

14Population data from U.S. Department of Commerce, Bureau of the Census, The National Data Book, Statistical Abstract of

the United States 1998.

15 This average was determined by first calculating for each minority group the growth rate relative to all U.S. population

growth. For example, the Hispanic population grew at five times, four times, and four times the U.S. population growth rates

during the three quinquennial periods. These figures average to four.

16 For example, the government-wide procurement preference goaling program requires agencies to award 23 percent of

prime contracts to small businesses; 5 percent of prime and subcontracts to small disadvantaged businesses; 5 percent of

prime and subcontracts to women-owned small businesses; increasing percentages from 1 percent to 3 percent of prime

contracts to HUBZone small businesses for FY 1999 through FY 2003 and ongoing; and 3 percent of prime and subcontracts

to service-disabled veteran-owned small businesses (see http://www.sba.gov/GC/whatwedo.html).
19

Figure 3. Geographic Distribution of Minority-Owned Businesses, 1997

Source: U.S. Department of Commerce, Bureau of the Census, Survey of Minority-Owned Business Enterprises, 1997

Table 20. Growth in Numbers of Minority-Owned Firms, 1982-19971

Number of Firms Growth Rates (Percent)

1982 1987 1992 1997 1982-

1987

1987-

1992

1992-

1997

All U.S. Firms 12,059,950 13,695,480 17,253,143 18,431,456 14 26 7

Nonminority-Owned Firms 11,234,999 12,419,170 15,103,959 15,645,358 11 22 4

All Minority-Owned Firms 824,951 1,343,910 2,149,184 2,786,098 55 68 30

Black-Owned Firms 308,260 424,165 620,912 780,770 38 46 26

Hispanic-Owned Firms 284,011 489,973 862,605 1,121,433 73 76 30

American Indian and Alaskan Native-Owned Firms 17,100 24,931 102,271 187,921 46 310 84

Asian, and Pacific Islander-Owned Firms 2 240,806 414,340 603,426 785,480 72 46 30

1Estimated undercounts have been included to illustrate trends believed reliable at the all firm level. Estimates are based on a large ample

mailout designed to measure the undercoverage of Hispanic and Asian firms of firms not identified by race code or surname.

2Undercounts for Asians and Pacific Islanders, American Indians and Alaskan Natives are estimated based on total undercounts for the

combined categories.

Source: U.S. Small Business Administration, Office of Advocacy, based on data from the U.S. Department of Commerce, Bureau of the

Census, Survey of Minority-Owned Business Enterprises, Company Statistics Series 1982, 1987, 1992, and 1997.
20

Figure 4 Growth in the Minority-Owned Business Population, 1982-1997

The rapid business growth occurred across minority groups (Table 20). Black-owned

businesses increased their numbers by 38 percent from 1982 to 1987, by 46 percent from

1987 to 1992, and by another 26 percent from 1997 to 1992. The quinquennial growth rates

for Hispanic-owned businesses were 73 percent, 76 percent, and 30 percent. Asian and Pacific

Islander-owned businesses increased by 72 percent, 46 percent, and 30 percent over the three

periods. The most striking percentage increases were in businesses owned by American

Indians and Alaska Natives, which grew at about nine times the rate of U.S. firms overall. It is

estimated that, excluding C corporations, the number of American Indian- and Alaska Nativeowned businesses rose 47 percent from 1982 to 1987, 310 percent from 1987 to 1992, and 84

percent from 1992 to 1997.

The astonishing growth in American Indian and Alaska Native-owned firms, especially the

310 percent increase over the 1987-1992 period, appears to reflect strong growth starting from

a relatively small base of firms. The growth may be attributable, at least in part, to specific

government policies supporting business growth. The 1988 Indian Gaming Regulatory Act

(IGRA) made it possible for federally recognized tribes to legally run casinos on Indian lands.

The 1987-1992 period covers firm growth starting one year before IGRA’s enactment and

continuing through the first years after enactment. The growth of American Indian and Alaska

Native-owned businesses deserves further close examination.

In the African American community, business growth exceeded population growth over the

three quinquennial periods. The faster growth in Black-owned businesses may reflect

increased opportunity, greater equality, better education, and direct governmental policies

targeting social and economic disadvantage and discrimination. Strong activism for greater

equality helped end segregationist policies in the government contracting process as early as

Change in the Minority Composition of 

U.S. Firms, 1982-1997

NonMinority 

Firms

MinorityOwned 

Firms

80%

85%

90%

95%

100%

1982 1987 1992 1997

Growth of Firms, 1982-1997

11

22

4

55

68

30

0 20 40 60 80

1982-1987

1987-1992

1992-1997

Growth Period

%

Minority-Owned Firms

Nonminority-Owned Firms
21

Figure 5. Minority-Owned Businesses and the Minority Population, 1982-1997

1941.17 The civil rights movement of the 1950s and 1960s moved the African American

community toward greater equality in many other aspects of society. An entrepreneurial focus

emerged in the 1970s, and the number of Black-owned firms increased by 47 percent over the

1977-1982 period. After the 1972 enactment of anti-discrimination provisions with respect to

education, a strong focus on improving education within the African American community

and concomitant efforts to increase minority education by the U.S. government helped raise

education levels, further supporting increases in entrepreneurship and business activity in the

 

17 In 1941, efforts of African-American trade unions and individuals such as trade union leader A. Phillip Randolph to defeat

segregation helped lead to President Franklin D. Roosevelt’s signing of Executive Order 8802, which outlawed segregationist

hiring policies by defense industries in the federal contracting process.

Number of Minority-Owned Firms, 

1982, 1987, 1992 and 1997

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1982 1987 1992 1997

Hispanic-Owned Firms 

Black-Owned Firms

Asian and Pacific Islander-Owned Firms*

American Indian and Alaskan Native-Owned Firms

Minority Population, 

1982, 1987, 1992 and 1997

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1982 1987 1992 1997

(in Thousands)

Hispanic

Black

Asian and Pacific Islander

American Indian and Alaska Native

Category (in thousands) 1982 1987 1992 1997 1982-87 1987-92 1992-97

All US Population 231,664 242,289 255,002 267,636 4.6 5.2 5.0

Nonminority Population 182,782 186,353 190,657 194,571 2.0 2.3 2.1

Hispanic Population 16,240 19,946 24,361 29,348 22.8 22.1 20.5

Black Population 26,856 28,351 30,333 32,298 5.6 7.0 6.5

Asian and Pacific Islander Population 4,367 5,985 7,794 9,443 37.1 30.2 21.2

American Indian and Alaska Native Population 1,420 1,654 1,856 1,976 16.5 12.2 6.5

1. The data presented are believed to be reliable. Efforts have been made to reconcile data collected using different methods.

2. All data exclude C corporations. Data for 1992 and 1997 are based on Census 1992-1997 comparison tables found in the 1997

summary of minority-owned business enterprises. In order to reconcile 1982 and 1987 data with 1992 and 1997 data estimated

undercounts have been added.

3. The estimated undercount is based on a large sample mailout conducted by Census and designed to measure the undercoverage of

Hispanic and Asian firms for those firms where neither race code nor surname identified them as possibly Asian or Hispanic.

Sources: 1) Survey of Minority-Owned Business Enterprises 1982, 1987, 1992, and 1997, the U.S. Department of Commerce, Bureau of

Census. 2) U.S. Department of Commerce, Bureau of Census, The National Data Book, Statistical Abstract of the United States 1998.
22

Black community.18 Other government policies such as the 1978 Small Business Act

supported equal opportunity in the marketplace.19

Minority Business Turnover

Lack of financial capital is one of many impediments to the survival of small firms and

minority-owned firms in particular. The SBA’s Office of Advocacy sponsored a study that

examined minority business turnover and the reasons for it, using a database of firms with

employees that started in 1992. 20 Forty-seven percent of the businesses with positive payrolls

that started in 1992 survived until at least 1996. The survival rate for new White nonHispanic-owned businesses was 48.7 percent. For new Black-owned businesses, it was 34.7

percent and for new White Hispanic-owned businesses it was 44.9 percent. For businesses

started by Asians and other minorities, the survival rate was 50.4 percent.

The study also examined, for each nonminority and minority group, the top five industries in

terms of 1992-1996 survival rates (Table 21). The highest survival rate by industry was

almost 82 percent for White non-Hispanic businesses in the oil and gas extraction industry,

and the highest rates by industry for minority-owned businesses ranged from 79.1 percent for

Black-owned businesses in legal services to 65.6 percent for White Hispanic-owned business

in health services. The fifth highest survival rate by industry was in the mid-50s range for all

minority groups, whereas for White, non-Hispanic-owned businesses the fifth highest rate was

near 70 percent.

The industries with the highest survival rates among minority-owned businesses are generally

service-producing industries—industries where entry costs tend to be lower than in goodsproducing industries. In contrast, for White non-Hispanic-owned businesses, the industries

with the highest survival rates are considerably more capital-intensive. As a general

proposition, this is probably a manifestation of systematic racial/ethnic differences in the

industrial distribution of businesses. The fact that minority-owned businesses tend to be more

prevalent in industries with lower entry costs may—at least in part—reflect more binding

liquidity constraints and generally less access to startup capital among prospective minority

business owners.

 

18 In addition, private sector efforts through organizations such as the National Foundation for Teaching Entrepreneurship

have played an important role in entrepreneurial education in minority and nonminority communities.

19 Among other things, the act required federal agencies to direct “not less than 5 percent” of their contracts to small

businesses “owned and controlled by social and economically disadvantaged individuals.”

20 Alicia Robb, while on staff in the Office of Advocacy, matched the Census Bureau's 1992 Survey of Minority-Owned

Business Enterprises (SMOBE) and 1992 Women-Owned Businesses survey data with the 1989-1996 Business Information

Tracking Series (BITS). The BITS is an annual, longitudinal database containing data on nearly all U.S. businesses and

establishments with positive payrolls. As a result of her work, it is now possible to examine a wide variety of longitudinal

inquiries over the 1992-1996 time period by gender, race, and/or ethnicity of business ownership. See Richard Boden,

“Analyses of Business Dissolution by Demographic Category of Business Ownership,” unpublished report prepared for the

Office of Advocacy of the U.S. Small Business Administration, Washington, D.C., December 2000.
23

Table 21. Top Five Major Industries in Business Survival Rates by Ethnicity, 1992-1996

Major Industry Name SIC Code Survival Rate (Percent)

White, Non-Hispanic-Owned

Oil and Gas Extraction 13 81.69

Electric, Gas, and Sanitary Services 49 76.61

Measuring, Analyzing, and Controlling Instruments 38 76.36

Fabricated Metal Products (exc. Machinery and Transportation Equip.) 34 71.50

Health Services 80 69.55

Black-Owned

Legal Services 81 79.11

Social Services 83 66.42

Real Estate 65 57.00

Insurance Agents, Brokers, and Service 64 56.24

Miscellaneous Retail 59 54.10

White, Hispanic-Owned

Health Services 80 65.60

Legal Services 81 58.43

Construction Special Trade Contractors 17 58.06

Automotive Dealers and Gasoline Service Stations 55 54.71

Wholesale Trade – Durable Goods 50 54.60

Asian/Other-Owned

Health Services 80 76.33

Legal Services 81 71.83

Hotels, Rooming Houses, Camps, and Other Lodging Places 70 68.52

Business Services 73 59.90

Wholesale Trade – Durable Goods 50 57.90

* Note: Data pertain exclusively to new (in 1992) firms (employer identification numbers or EINs) with positive payrolls in 1992. Also,

in order to be included in this tabulation, a major industry must have had at least 50 new firms (EINs) in 1992.

Source: Special tabulations of 1992-1996 Business Information Tracking Series (BITS) data matched with 1992 SMOBE and WOB

data. This merged data series was created by Dr. Alicia Robb of the Federal Reserve Board of Governors while she was employed by

the Office of Advocacy of the U.S. Small Business Administration.

Government Programs Supporting Minority-Owned Businesses

Financing Programs

The 7(a) loan guaranty program provides loans to small businesses unable to secure financing

on reasonable terms through normal lending channels. The program operates through privatesector lenders that provide loans guaranteed by the SBA; the agency has no funds for direct

lending or grants. The number and dollar amounts of 7(a) loans have been increasing rather

steadily for all minority groups; they have reached a plateau in the recent past for

nonminorities. Asians have received a larger share of dollars than of the number of loans,

implying that they have applied for and been awarded larger loans than other groups. On

average, minority shares of the number and value of 7(a) loans were as follows: Asian-owned

firms, 8.5 percent and 12.2 percent; Hispanic, 6.5 percent and 5.1 percent; African American,

4.2 percent and 2.8 percent; and Native American, 0.8 percent and 0.6 percent (Tables 21 and

22).
24

 Table 22. Number of 7(a) Loans by Ethnicity, 1990-2000

Year

African

American Hispanic 1

Native

American 2

Asian Unknown

Other Incl

White

MultiNationalTotal #

Loans

2000 2,000 3,221 525 5,359 64 32,455 125 43,749

1999 2,057 3,456 515 5,106 93 32,348 82 43,657

1998 1,840 3,036 439 4,818 107 32,039 44 42,323

1997 1,819 3,160 389 4,170 152 35,297 391 45,378

1996 2,231 3,040 408 3,300 94 36,731 176 45,980

1995 2,696 3,742 392 3,478 24 45,348 106 55,786

1994 1,424 2,383 229 2,610 247 29,470 56 36,419

1993 795 1,462 136 1,674 707 21,860 56 26,690

1992 675 1,185 117 1,484 673 19,985 57 24,176

1991 550 870 97 1,304 695 15,901 51 19,468

1990 610 718 87 1,035 814 15,799 66 19,129

Average 1,518 2,388 303 3,122 334 28,839 110 36,614

Average Share* 4.15 6.52 0.83 8.53 0.91 78.77 0.30 100.00

*Each group’s 1990-2000 average share of total 7(a) loans.

1/ Hispanic-owned businesses include Puerto Rican and Hispanic from original data.

2/ Native American-owned businesses include Native American and Eskimo/Aleut from original data.

Data Source: The Office of Advocacy, based on data from Office of Financial Assistance, The Small Business Administration.

Table 23. Nominal Dollar Value of 7(a) Loans by Ethnicity, 1990-2000

Year

AfricanAmerican Hispanic1Native

American 2

Asian Unknown

Other, Incl

White

MultiNational Total

2000 353,870,408 664,591,345 94,485,017 2,123,381,272 18,187,400 7,332,977,208 19,476,942 10,606,969,592

1999 352,940,177 642,133,544 76,205,224 1,894,481,899 31,923,800 7,225,275,916 13,120,200 10,236,080,760

1998 278,377,347 544,650,285 67,912,734 1,506,676,336 24,144,200 6,671,898,131 11,689,300 9,105,348,333

1997 266,741,654 550,810,858 73,816,907 1,316,177,833 40,214,288 7,198,643,522 131,395,861 9,577,800,923

1996 264,247,374 418,590,780 67,079,536 887,292,852 30,256,822 6,055,871,424 57,171,888 7,780,510,676

1995 268,201,875 466,679,023 57,997,718 796,480,862 3,508,644 6,712,235,248 19,429,105 8,324,532,475

1994 205,577,625 434,008,823 49,565,259 863,575,696 66,111,995 6,616,932,849 17,620,950 8,253,393,197

1993 139,703,672 299,418,026 33,177,285 596,239,102 183,558,436 5,516,675,186 18,395,970 6,787,167,677

1992 122,082,835 254,642,992 27,758,660 532,015,365 182,427,585 4,834,745,413 16,946,546 5,970,619,396

1991 97,444,699 168,904,151 18,585,198 423,527,977 161,662,543 3,559,612,495 14,870,910 4,444,607,973

1990 96,721,264 143,436,389 13,737,808 300,037,350 172,707,792 3,461,048,989 20,357,150 4,208,046,742

Average

Share* 2.76 5.13 0.64 12.24 1.45 77.40 0.40 100.00

* Percentage based on the average of each group’s annual shares of the 7(a) loan dollar totals issued from 1990 to 2000.

1/ Hispanic-owned businesses include Puerto Rican and Hispanic from original data.

2/ Native American-owned businesses include Native American and Eskimo/Aleut from original data.

Source: U.S. Small Business Administration, Office of Advocacy, based on data from SBA’s Office of Financial Assistance.

The 504 Certified Development Company (CDC) program provides growing businesses with

long-term, fixed-rate financing for major fixed assets, such as land and buildings. A certified

development company is a nonprofit corporation set up to contribute to the economic

development of its community. The dollar value of 504 loans has fluctuated from year to year

(Table 24). The share of the value of 504 loans won by the various minority groups is similar

to their shares of 7(a) loans (Table 25).
25

Table 24. Nominal Dollar Value of 504 Loans by Ethnicity, 1990-2000

Year

AfricanAmerican Hispanic 1/

Native

American 2/ Asian Unknown

Other, Incl

White

MultiNational Total

1990 6,777,500 7,758,000 374,043 19,291,200 39,251,000 415,158,840 2,208,000 490,818,583

1991 5,247,000 13,940,124 701,000 17,652,909 34,161,000 405,987,847 2,231,000 479,920,880

1992 9,913,969 25,521,000 644,000 33,872,000 31,759,000 561,840,753 481,000 664,031,722

1993 14,706,000 25,038,000 3,382,000 40,552,100 40,709,000 723,656,586 6,548,000 854,591,686

1994 22,616,000 60,727,558 3,124,000 106,147,000 33,755,000 1,146,969,882 4,337,000 1,377,676,440

1995 27,324,000 77,730,754 2,852,000 150,697,499 1,580,000 1,349,678,817 11,896,000 1,621,759,070

1996 37,092,044 112,896,525 17,683,000 292,291,167 2,756,000 2,114,862,319 15,794,000 2,593,375,055

1997 27,228,000 77,320,000 7,089,000 185,971,000 1,078,000 1,198,802,586 5,512,000 1,503,000,586

1998 26,169,999 90,152,000 9,249,000 189,786,000 2,069,000 1,515,471,873 955,000 1,833,852,872

1999 36,524,000 113,310,600 8,215,000 254,379,400 370,000 1,629,148,198 N.A. 2,041,947,198

2000 37,674,000 102,614,000 7,512,000 271,466,000 1,962,000 1,426,182,986 2,615,000 1,850,025,986

Average

Share* 1.59 4.18 0.33 8.69 2.51 82.34 0.36 100.00

* Percentage based on the average of each group’s annual shares of the 7(a) loan dollar totals issued from 1990 to 2000.

1/ Hispanic-owned businesses include Puerto Rican and Hispanic from original data.

2/ Native American-owned businesses include Native American and Eskimo/Aleut from original data.

Source: U.S. Small Business Administration, Office of Advocacy, based on data from SBA’s Office of Financial Assistance.

Table 25. Ethnic/Racial Share of 504 Loan Dollar Value (Percent), 1990-2000

AfricanAmericanHispanic 1 Native

American 2

Asian Unknown

Other, Incl

White

MultiNational Total

2000 2.04 5.55 0.41 14.67 0.11 77.09 0.14 100.00

1999 1.79 5.55 0.40 12.46 0.02 79.78 0.00 100.00

1998 1.43 4.92 0.50 10.35 0.11 82.64 0.05 100.00

1997 1.81 5.14 0.47 12.37 0.07 79.76 0.37 100.00

1996 1.43 4.35 0.68 11.27 0.11 81.55 0.61 100.00

1995 1.68 4.79 0.18 9.29 0.10 83.22 0.73 100.00

1994 1.64 4.41 0.23 7.70 2.45 83.25 0.31 100.00

1993 1.72 2.93 0.40 4.75 4.76 84.68 0.77 100.00

1992 1.49 3.84 0.10 5.10 4.78 84.61 0.07 100.00

1991 1.09 2.90 0.15 3.68 7.12 84.59 0.46 100.00

1990 1.38 1.58 0.08 3.93 8.00 84.58 0.45 100.00

Average 1.59 4.18 0.33 8.69 2.51 82.34 0.36 100.00

1/ Hispanic-owned businesses include Puerto Rican and Hispanic from original data.

2/ Native American-owned businesses include Native American and Eskimo/Aleut from original data.

Source: U.S. Small Business Administration, Office of Advocacy, based on data from SBA’s Office of Financial Assistance.

Federal Procurement Programs

By law, U.S. federal agencies are required to provide small and women-owned businesses and

small business owned or controlled by socially and economically disadvantaged individuals

the “maximum practicable opportunity” to participate in federal contracts for good and

services.

The law sets a government-wide goal of 5 percent of the total dollar value of all federal prime

and subcontracts to be awarded to small business concerns owned and controlled by “socially
26

and economically disadvantaged individuals.” The value of contracts over $25,000 awarded to

minority-owned businesses has been increasing over the years (Table 26).

The 8(a) program helps small companies owned and controlled by socially and economically

disadvantaged individuals obtain federal agency contracts through a certification process

carried out by the U.S. Small Business Administration. Under the program, the SBA, which

acts as the prime contractor in the process, works with other federal agencies to identify

requirements suitable for the 8(a) program. The federal agencies, with SBA assistance, then

negotiate subcontracts with certified 8(a) program participants. The 8(a) share of total contract

actions increased significantly from 1.5 percent in fiscal year (FY) 1984 to a high of 3.7

percent in FY 1995 and 1996, then dropped to 2.7 percent in FY 2000 (Table 27). From FY

1997 to 2000, total dollars in contract actions over $25,000 kept growing, while dollars in 8(a)

contracts declined from $6.5 billion in FY 1998 to $6.1 billion in FY 1999 and to $5.6 billion

in FY 2000. The reasons for the decline warrant further examination.

Conclusion

Minorities in Business, 2001, a companion to the Office of Advocacy report, Women in

Business, 2001, is neither an academic research report nor a policy study, but reviews

available data on the contributions, composition, and growth of minority-owned businesses. It

is hoped that this data report will stimulate further studies on minority-owned businesses.

The fast growth of Hispanic-owned businesses corresponds with the fast growth of the

Hispanic population, and growth is expected to continue in both. Hispanic-owned businesses

are well represented in most major industries, but lower levels of education in parts of the

Hispanic population may hinder future business development and growth in industries that

require high concentrations of human capital. There is a severe business income disparity

among Hispanic ethnic groups: Puerto Rican- and Mexican-owned businesses were among the

poorest.

Blacks remain the poorest racial group in the United States; they are also the least represented

in the U.S. business sector, as seen in measures such as the number of Black-owned

businesses, African Americans’ self-employment and business participation rates, and the

dollar value of Black-owned business receipts per Black population. Survival rates of new

businesses owned by Blacks were the lowest compared with other business groups. African

Americans constitute a large proportion of the U.S. minority population, and there is great

potential for growth in the Black-owned business community, as well as a continuing need for

educational, financial, and other resources.

The significant growth rate of American Indian and Alaska Native-owned businesses may

mirror such factors as (1) a low initial rate of business ownership as a starting point; (2) strong

and favorable government support; and (3) a significant share of educated individuals in the

population. Business income generation might be increased by intensifying the physical and

human capital devoted to these businesses and by their further diversification into technology

and production-oriented industries.
27

Table 26. Annual Change in the Dollar Volume of Contract Actions Over $25,000 Awarded

to All, Small, and Minority-Owned Businesses, FY 1980—FY 2000 (Thousands of Dollars)

Total, All Business Small Business Minority-Owned Business

Total Change from Prior Year Total Change from Prior Year Total Change from Prior Year

Actions Dollars Percent Actions Dollars Percent Actions Dollars Percent

2000 203,613,296 15,640,066 8.3 38,260,306 2,515,114 7.0 12,586,798 727,575 6.1

1999 187,973,230 3,862,225 2.1 35,745,192 1,485,753 4.3 11,859,223 414,203 3.6

1998 184,111,005 -11,175,936 -5.7 34,259,439 -7,013,742 -17.0 11,445,020 312,398 2.8

1997 195,286,941 17,218,902 9.7 41,273,181 8,082,760 24.4 11,132,622 491,851 4.6

1996 178,068,039 -2,783,936 -1.5 33,190,421 1,383,158 4.3 10,640,771 121,302 1.2

1995 180,851,975 6,164,024 3.5 31,807,263 3,384,230 11.9 10,519,469 1,459,981 16.1

1994 174,687,951 -3,649,028 -2.0 28,423,033 475,592 1.7 9,059,488 255,468 2.9

1993 178,336,979 550,598 0.3 27,947,441 -282,308 -1.0 8,804,020 1,007,913 12.9

1992 177,786,381 -11,815,839 -6.2 28,229,749 -617,609 -2.1 7,796,107 1,309,818 20.2

1991 189,602,220 18,301,330 10.7 28,847,358 3,445,732 13.6 6,486,289 796,229 14.0

1990 171,300,890 2,605,909 1.5 25,401,626 1,685,455 7.1 5,690,060 356,172 6.7

1989 168,694,981 -5,402,604 -3.1 23,716,171 -1,955,147 -7.6 5,333,888 141,382 2.7

1988 174,097,585 -7,441,007 -4.1 25,671,318 -2,256,401 -8.1 5,192,506 343,381 7.1

1987 181,538,592 -2,111,635 -1.1 27,927,719 -852,373 -3.0 4,849,125 563,200 13.1

1986 183,650,227 -4,335,239 -2.3 28,780,092 2,077,397 7.8 4,285,925 401,286 10.3

1985 187,985,466 20,051,980 11.9 26,702,695 1,196,672 4.7 3,884,639 -119,500 -3.0

1984 167,933,486 12,345,380 7.9 25,506,023 3,425,999 15.5 4,004,139 817,048 25.6

1983 155,588,106 3,190,222 2.1 22,080,024 -1,478,539 -6.3 3,187,091 328,180 11.5

1982 152,397,884 23,533,140 18.3 23,558,563 3,489,774 17.4 2,858,911 223,903 8.5

1981 128,864,744 27,971,359 27.7 20,068,789 4,742,668 30.9 2,635,008 813,087 44.6

1980 100,893,385 - - 15,326,121 - - 1,821,921 - -

Source: Federal Procurement Data System, special reports prepared for the U.S. Small Business Administration, Office of Advocacy.

Table 27. Contract Actions Over $25,000 with Annual 8(a) Set-Aside, FY 1984—FY 2000

Thousands of Dollars

Fiscal Year Total 8(a) Set-Aside 8(a) Share (Percent)

2000 205,847,301 5,616,701 2.7

1999 187,973,230 6,125,505 3.3

1998 184,111,005 6,527,194 3.5

1997 178,924,894 6,511,118 3.6

1996 183,483,693 6,765,012 3.7

1995 185,119,992 6,911,080 3.7

1994 181,500,339 5,977,455 3.3

1993 184,426,948 5,483,544 3.0

1992 183,081,207 5,205,080 2.8

1991 193,550,425 4,147,148 2.1

1990 179,286,902 3,743,970 2.1

1989 172,612,189 3,449,860 2.0

1988 176,544,042 3,528,790 2.0

1987 181,750,326 3,341,841 1.8

1986 183,681,389 2,935,633 1.6

1985 188,186,629 2,669,174 1.4

1984 168,101,394 2,517,738 1.5

Source: Federal Procurement Data System, special reports prepared for the U.S. Small Business Administration, Office of Advocacy.

A large proportion of the Asian community are new immigrants—hard-working,

entrepreneurial people in search of the “American Dream.” They are equipped with abundant

human capital and substantial business know-how, and they are relatively evenly distributed

among income groups. Many Asian-owned firms have paid employees. There is significant

potential for ethnic groups such as Filipinos, Vietnamese, other Asians, Hawaiians, and other

Pacific Islanders to improve their business earnings.
28

Appendix 1 Comparability of SMOBE 1982, 1987, 1992 and 1997

The primary source of data used here is the Survey of Minority-Owned Business Enterprises

(SMOBE) for 1982, 1987, 1992, and 1997, prepared by the Census Bureau as part of its

quinquennial Economic Censuses. The Economic Census first began in 1954 and since 1967

has been conducted every five years. Data may not be comparable between different years

because of significant changes in survey methodology. Whenever possible, comparable data

have been used and major discrepancies have been noted. Some of the significant differences

in the data include the following.

1987

Prior to 1987, surveys included any firm filing a business tax return with business receipts

greater than zero. In 1987, only firms with receipts totaling $500 or more were included in the

data. Another change in 1987 was the exclusion of firms filing tax returns other than the IRS

1120S form (for Subchapter S corporations.) This was done to correct problems with prior

survey methods that resulted in undercoverage of medium-sized to large minority-owned

corporations.

1992

Significant changes between 1987 and 1992 include a change in the classification of firm

data. For 1992, classifications were based on the 1987 SIC manual. This manual was updated

to better reflect industry trends. For 1987, classifications were based on the 1972 SIC manual.

Further, in 1987, processing errors resulted in a significant overstatement of the number of

employer firms.

1997

1997 data are not directly comparable to past surveys because of a number of significant

changes. Only firms with $1,000 or more in receipts were included in the 1997 tabulation of

minority-owned businesses. C corporations are now included in the data, whereas in the past

only Subchapter S corporations, partnerships, and sole proprietorships were included. Another

change is in the tabulation of firms with 50 percent minority ownership. Past tabulations of

minority-owned businesses included firms with 50 percent minority ownership, while 1997

data include only those with 51 percent minority ownership or more. Jointly owned minority

and nonminority firms, where no one single racial/ethnic group has majority ownership, are

tabulated separately in the 1997 Economic Census Company Summary publication as 50

percent minority-, 50 percent nonminority-owned.

The list above includes only a portion of the changes made to survey methodology and should

in no way be considered an exhaustive explanation of data comparability.
29

Appendix 2 Definitions of Groups in the SMOBE

The racial and ethnic categories used in the SMOBE/SWOBE survey are consistent with those

mandated by the Office of Management and Budget at the time the survey was conducted.

Both the Executive Branch and Congress developed these standards. Respondents in this

survey were not given the opportunity to identify themselves as being of two or more races, as

was allowed in the 2000 Census of Population and Housing.

American Indian- and Alaska Native-owned businesses are those for which the sole proprietor

checked American Indian or Alaska Native on the 1997 or 1992 survey questionnaire or, in the case of

firms with multiple owners, where 51 percent or more of stock interest, claims, or rights were held by

American Indians or Alaska Natives so determined. The 1992 form further defined the category as

persons having origins (ancestry) in any of the original peoples of North America, and who maintain

cultural identification through tribal affiliation or community recognition.

Asian- and Pacific Islander-owned businesses are those for which the sole proprietor identified his

or her origin as Asian Indian, Chinese, Filipino, Japanese, Korean, Vietnamese, Other Asian, Native

Hawaiian, or Other Pacific Islander on the 1997 or 1992 survey questionnaire; or, in the case of firms

with multiple owners, where 51 percent or more of stock interest, claims, or rights were held by

Asians so determined. The 1992 form further identified the group as persons having origins in any of

the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands.

Black-owned businesses are those for which the sole proprietor checked "African Am./Black/Negro"

on the 1997 survey or "African American/Black/Negro" on the 1992 survey questionnaire or, in the

case of firms with multiple owners, where 51 percent or more of stock interest, claims, or rights were

held by African Americans so determined.

Hispanic-owned businesses are those for which the sole proprietor identified his or her origin as

Cuban, Mexican/Mexican American/Chicano, Puerto Rican, Spaniard, Hispanic Latin American, or

Other Spanish/Hispanic/Latino on the 1997 or 1992 survey questionnaire; or, in the case of firms with

multiple owners, where 51 percent or more of stock interest, claims, or rights were held by Hispanics

so determined. Hispanic origin and race were determined in separate questions and some Hispanicowned businesses were also counted in race categories included in this report.

Jointly owned businesses refers to businesses with 50 percent minority ownership and 50 percent

nonminority ownership

Publicly held, foreign-owned, and not for profit are businesses or organizations for which the

primary ownership by a racial, ethnic, or gender category could not be determined.

Total minorities refers to businesses owned by Blacks, Hispanics, Asians, Pacific Islanders,

American Indians, and Alaska Natives.

Universe (All Firms) refers to all businesses, without regard to the race, ethnicity, or gender of the

business owners.
30

Appendix Tables

A.1 Survey of Minority-Owned Business Enterprises, 1997

A.2 Survey of Black- and American Indian and Alaska Native-Owned Business

Enterprises, 1982, 1987, 1992, and 1997

A.3 Survey of Hispanic-Owned Business Enterprises, 1982, 1987, 1992, and 1997

A.4 Survey of Asian and Pacific Islander-Owned Business Enterprises, 1982, 1987, 1992,

and 1997

A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity

and State, 1997
31

Table A.1 Survey of Minority-Owned Business Enterprises, 1997

All Firms Firms with Paid Employees Nonemployers

Ethnic Group Firms

(Number)

Sales and

Receipts

(Thousands of

Dollars)

Firms

(Number)

Sales and

Receipts

(Thousands of

Dollars)

Employees

(Number)

Payroll

(Thousands of

Dollars)

Firms

(Number)

Sales and

Receipts

(Thousands of

Dollars)

Universe (All Firms) 20,821,935 18,553,243,047 5,295,152 17,907,940,321 103,359,815 2,936,492,940 15,526,783 645,302,726

Black 823,499 71,214,662 93,235 56,377,860 718,341 14,322,312 730,264 14,836,802

Hispanic 1,199,896 186,274,582 211,884 158,674,537 1,388,746 29,830,028 988,012 27,600,045

 Cuban 125,273 26,492,208 30,203 23,873,193 176,428 4,162,640 95,070 2,619,015

 Mexican Mexican American, Chicano 472,033 73,706,753 90,755 62,270,808 695,372 13,014,996 381,278 11,435,945

 Puerto Rican 69,658 7,461,069 10,976 5,814,069 61,509 1,496,894 58,682 1,647,000

 Spaniard 57,160 16,922,913 12,590 15,263,807 76,338 2,045,675 44,570 1,659,106

 Hispanic Latin American 287,314 40,997,923 42,916 34,798,421 238,612 5,862,668 244,398 6,199,502

 Other Spanish/Hispanic/Latino 188,458 20,693,715 24,445 16,654,239 140,487 3,247,154 164,013 4,039,476

American Indian and Alaska Natives 197,300 34,343,907 33,277 29,226,260 298,661 6,624,235 164,023 5,117,647

Asian and Pacific Islander 912,960 306,932,982 289,999 278,294,345 2,203,079 46,179,519 622,961 28,638,637

 Asian Indian 166,737 67,503,357 67,189 61,760,453 490,629 12,585,621 99,548 5,742,904

 Chinese 252,577 106,196,794 90,582 98,233,262 691,757 12,944,824 161,995 7,963,532

 Filipino 84,534 11,077,885 14,581 8,966,386 110,130 2,667,333 69,953 2,111,499

 Japanese 85,538 43,741,051 23,309 41,294,865 262,223 7,106,692 62,229 2,446,186

 Korean 135,571 45,936,497 50,076 40,745,504 333,649 5,789,472 85,495 5,190,993

 Vietnamese 97,764 9,322,891 18,948 6,768,324 79,035 1,165,550 78,816 2,554,567

 Other Asian 70,868 19,016,149 22,292 16,800,603 201,610 3,135,784 48,576 2,215,546

 Hawaiian 15,544 2,250,153 2,023 1,956,793 20,698 497,950 13,521 293,360

 Other Pacific Islander 3,826 1,888,205 1,000 1,768,155 13,349 286,293 2,826 120,050

Total Minority 3,133,655 598,766,133 628,395 522,573,002 4,608,827 96,956,094 2,505,260 76,193,131

Minority Share of Total Firms 0.15 0.03 0.12 0.03 0.04 0.03 0.16 0.12

Source: U.S. Department of Commerce, Bureau of Census.
32

Table A.2 Survey of Black- and American Indian and Alaska Native-Owned Business

Enterprises, 1982, 1987, 1992 and 1997

Group Year All Businesses

(Number)

Gross Receipts

(Thousands of

Dollars)

Businesses with

Employees

(Number)

Gross Receipts

(Thousands of

Dollars)

Employees

(Number)

American Indians 1982 14,844 646,749 1,462 408,411 7,216

1987 21,380 911,279 3,739 602,789 8,956

1992* 102,271 8,057,003 n/a n/a n/a

1997 197,300 34,343,907 33,277 29,226,260 298,661

American Indian 1982 12,096 563,322 1,401 381,116 6,894

1987 17,884 803,424 3,343 559,484 8,571

1992 95,040 7,419,832 n/a n/a n/a

1997 n/a n/a n/a n/a n/a

Aleut 1982 997 38,083 29 4,197 161

1987 1,143 53,301 116 20,094 212

1992 2,738 221,623 n/a n/a n/a

1997 n/a n/a n/a n/a n/a

Eskimo 1982 1,751 45,344 32 23,098 161

1987 2,353 54,554 280 23,211 173

1992 4,493 415,548 n/a n/a n/a

1997 n/a n/a n/a n/a n/a

Black 1982 308,260 9,619,055 37,841 5,704,545 121,373

1987 424,165 19,762,876 70,815 14,130,420 220,467

1992 620,912 32,197,361 64,478 22,589,676 345,193

1997 823,499 71,214,662 93,235 56,377,860 718,341

Note: American Indian and Alaska Native 1992 data were as based on Asian 1992 report, Table A: estimates.

*These data are not comparable across years.

Source: U.S. Department of Commerce, Bureau of the Census.
33

Table A.3 Survey of Hispanic-Owned Business Enterprises, 1982, 1987, 1992 and 1997

Groups Year

All Businesses

(Number)

Gross Receipts

($1,000)

Businesses with

Employees

(Number)

Gross Receipts

($1,000)

Employees

(Number)

Hispanic 1982 248,141 14,976,337 39,917 10,652,868 189,636

1987 422,373 24,731,600 82,908 17,729,432 264,846

1992 771,708 72,824,269 115,366 57,187,371 691,057

1997 1,199,896 186,274,581 211,885 158,674,537 1,388,746

Cuban 1982 36,631 2,149,198 5,215 1,395,659 22,639

1987 61,470 5,481,974 10,768 4,227,065 47,266

1992 93,096 15,568,045 17,839 13,362,106 120,477

1997 125,273 26,492,208 30,203 23,873,193 176,428

Mexican, Mexican American,

Chicano

1982 143,177 7,177,398 24,110 4,847,049 106,712

1987 229,706 11,835,080 49,078 8,403,796 148,008

1992 378,614 28,901,213 56,277 21,690,496 323,883

1997 472,033 73,706,753 90,755 62,270,808 695,372

Puerto Rican 1982 14,690 663,270 1,700 331,803 5,528

1987 27,697 1,447,680 4,629 903,848 13,231

1992 47,401 3,756,616 6,162 2,848,686 33,797

1997 69,658 7,461,069 10,976 5,814,069 61,509

Spaniard 1982 20,838 1,186,830 3,203 828,927 13,174

1987 24,755 2,054,537 5,299 1,628,133 21,196

1992 45,200 6,224,397 7,987 5,146,260 56,063

1997 57,160 16,922,913 12,590 15,263,807 76,338

Hispanic Latin

American

1982 26,986 1,113,343 3,646 662,607 11,919

1987 66,356 3,202,238 10,793 2,031,768 27,386

1992 161,413 12,085,160 19,325 8,903,470 99,182

1997 287,314 40,997,923 42,916 34,798,421 238,612

Other Spanish/

Hispanic/Latino

1982 5,819 2,686,298 2,043 2,586,823 29,664

1987 12,389 710,091 2,341 534,822 7,759

1992 45,984 6,288,838 7,776 5,236,353 57,655

1997 188,458 20,693,715 24,445 16,654,239 140,487

These data are not comparable across years. The data came from each year and from each minority survey, unless otherwise noted.

Overall totals were sums of data entries

Source: U.S. Department of Commerce, Bureau of Census.
34

Table A.4 Survey of Asian and Pacific Islander-Owned Business Enterprises, 1982, 1987,

1992 and 1997

Groups Year

All Businesses

(Number)

Gross Receipts

($1,000)

Businesses with

Employees

(Number)

Gross Receipts

($1,000)

Employees

(Number)

Asian and Pacific Islanders 1982 204,211 15,785,561 42,149 11,721,641 200,946

1987 355,331 33,124,326 92,718 24,501,338 351,345

1992 603,426 95,713,613 n/a n/a n/a

1997 912,959 306,932,982 290,000 278,294,345 2,001,671

Asian Indian 1982 25,539 1,661,251 6,387 1,125,271 20,697

1987 52,266 6,714,684 16,370 5,186,582 65,733

1992 93,340 19,284,010 n/a n/a n/a

1997 166,737 67,503,357 67,189 61,760,453 490,629

Chinese 1982 52,839 6,074,605 14,110 4,982,676 91,864

1987 89,717 9,609,592 26,531 7,462,818 126,763

1992 153,096 30,188,984 n/a n/a n/a

1997 252,577 106,196,794 90,582 98,233,262 691,757

Filipino 1982 26,464 747,499 3,036 405,811 8,126

1987 40,412 1,914,133 6,711 1,253,570 16,822

1992 67,625 4,780,663 n/a n/a n/a

1997 84,534 11,077,885 14,581 8,966,386 110,130

Japanese 1982 49,039 2,731,098 6,791 1,989,651 31,597

1987 53,372 3,837,255 10,186 2,784,406 38,389

1992 68,662 12,262,772 n/a n/a n/a

1997 85,538 43,741,051 23,309 41,294,865 262,223

Korean 1982 31,769 2,677,067 7,893 1,704,762 24,663

1987 69,304 7,682,668 21,657 5,502,006 70,530

1992 104,918 16,170,438 n/a n/a n/a

1997 135,571 45,936,497 50,076 40,745,504 333,649

Vietnamese 1982 5,234 215,259 960 126,523 2,319

1987 25,671 1,360,974 5,840 837,012 13,357

1992 59,674 4,312,528 n/a n/a n/a

1997 97,764 9,322,891 18,948 6,768,324 79,035

Hawaiian 1982 3,305 85,579 291 48,714 1,196

1987 4,279 221,176 640 141,684 1,956

1992 11,587 1,058,332 n/a n/a n/a

1997 15,544 2,250,153 2,023 1,956,793 20,698

Other Asian and Pacific

Islander.

1982 10,022 1,593,203 2,681 1,338,233 20,484

1987 20,310 1,783,844 4,783 1,333,260 17,795

1992 44,524 7,655,886 n/a n/a n/a

1997 74,694 20,904,354 23,292 18,568,758 13,550

These data are not comparable across years. The data came from each year and from each minority survey, unless otherwise noted.

Overall totals were sums of data entries.

Asian and Pacific Islander 1992 data were based on the Asian 1992 report, Table A: estimates of firms owned.

Source: U.S. Department of Commerce, Bureau of Census.
Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms 20,821,934 18,553,243,04

7

5,295,151 17,907,940,321 103,359,815 2,936,492,940 15,526,783 645,302,726

American Indian/Alaska Native 197,300 34,343,907 33,277 29,226,260 298,661 6,624,235 164,023 5,117,647

Asian 893,590 302,794,625 286,976 274,569,397 2,169,032 45,395,276 606,614 28,225,229

Black 823,499 71,214,662 93,235 56,377,860 718,341 14,322,312 730,264 14,836,803

Hispanic 1,199,896 186,274,582 211,884 158,674,537 1,388,746 29,830,028 988,012 27,600,045

Pacific Islander 19,370 4,138,357 3,023 3,724,948 34,047 784,243 16,347 413,409

United States

White Non-Hispanic 17,316,796 7,763,010,611 4,372,817 7,252,270,327 54,084,357 1,395,150,230 12,943,980 510,740,283

All Firms in the State 285,206 237,406,593 75,987 228,632,577 1,530,488 36,646,331 209,219 8,774,016

American Indian/Alaska Native 3,513 459,539 592 382,184 4,001 75,893 2,921 77,355

Asian 3,278 1,383,041 1,441 N.A. 10,000~24,999 N.A. 1,837 N.A.

Black 19,077 1,008,966 2,266 728,041 13,232 231,869 16,810 280,925

Hispanic 2,919 396,775 426 355,509 3,950 91,369 2,493 41,266

Pacific Islander 37 3,918 17 N.A. 250~499 N.A. 20 N.A.

Alabama

White Non-Hispanic 250,639 115,109,012 66,389 107,972,826 845,795 18,962,584 184,250 7,136,187

All Firms in the State 64,134 36,911,657 14,948 35,275,916 182,184 5,829,807 49,186 1,635,741

American Indian/Alaska Native 6,820 1,709,448 828 1,505,318 8,131 264,928 5,992 204,131

Asian 1,661 N.A. 592 N.A. 2,500~4,999 N.A. 1,069 41,320

Black 876 55,713 117 44,394 704 13,094 759 11,320

Hispanic 1,385 192,077 331 155,239 1,802 31,440 1,054 36,839

Pacific Islander 155 N.A. 55 N.A. 100~249 N.A. 100 2,302

Alaska

White Non-Hispanic 51,018 14,649,540 11,442 13,354,694 95,751 2,941,230 39,576 1,294,847

All Firms in the State 329,031 247,191,482 86,302 237,960,022 1,666,364 41,788,366 242,729 9,231,460

American Indian/Alaska Native 5,510 752,520 848 673,949 8,703 163,623 4,662 78,571

Asian 6,898 1,882,400 2,540 N.A. 10,000~24,999 N.A. 4,358 N.A.

Black 3,582 314,497 503 252,736 5,704 92,407 3,080 61,761

Hispanic 28,894 4,226,654 6,320 3,712,514 42,791 770,963 22,574 514,139

Pacific Islander 246 119,440 92 N.A. 500~999 N.A. 154 N.A.

Arizona

White Non-Hispanic 276,147 111,744,406 70,116 104,013,965 868,393 20,081,021 206,032 7,730,441
36

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 193,424 143,570,776 49,341 135,575,701 915,826 19,926,386 144,083 7,995,075

American Indian/Alaska Native 2,308 438,170 351 369,989 3,456 63,573 1,958 68,182

Asian 1,502 N.A. 608 N.A. 2,500~4,999 N.A. 894 N.A.

Black 6,721 386,958 761 264,831 2,464 40,975 5,961 122,127

Hispanic 2,586 189,955 365 121,645 2,044 30,487 2,221 68,310

Pacific Islander 27 N.A. 8 N.A. 20~99 N.A. 19 N.A.

Arkansas

White Non-Hispanic 175,715 68,928,986 43,610 64,256,804 516,081 10,350,424 132,106 4,672,182

All Firms in the State 2,565,734 2,178,292,213 618,232 2,086,547,724 11,474,180 358,473,980 1,947,502 91,744,489

American Indian/Alaska Native 26,603 5,835,958 5,039 5,067,499 77,803 1,894,671 21,564 768,459

Asian 312,956 121,055,596 93,557 109,630,780 791,632 15,076,922 219,399 11,424,817

Black 79,110 6,395,311 7,377 4,552,255 56,252 1,081,299 71,734 1,843,056

Hispanic 336,405 51,682,136 50,223 42,872,261 392,434 8,082,903 286,182 8,809,876

Pacific Islander 3,092 509,981 191 436,705 6,136 125,279 2,901 73,276

California

White Non-Hispanic 1,762,449 851,616,827 424,264 787,626,267 5,630,572 163,647,881 1,338,183 63,990,560

All Firms in the State 410,249 277,629,997 104,989 266,136,186 1,646,273 45,736,518 305,260 11,493,811

American Indian/Alaska Native 3,390 515,072 405 415,046 3,539 110,075 2,985 100,026

Asian 8,733 2,010,148 2,904 1,767,465 18,783 348,414 5,829 242,683

Black 4,926 512,868 740 423,043 4,204 88,485 4,187 89,824

Hispanic 20,859 3,068,288 4,102 2,665,587 27,620 603,750 16,758 402,701

Pacific Islander 295 49,690 46 43,917 378 9,453 249 5,773

Colorado

White Non-Hispanic 361,601 122,290,677 89,119 112,470,172 902,840 22,678,968 272,482 9,820,503

All Firms in the State 284,022 314,909,364 76,539 304,204,471 1,473,721 51,816,980 207,483 10,704,893

American Indian/Alaska Native 1,311 407,124 418 350,652 3,748 100,739 893 56,472

Asian 5,820 2,506,940 2,146 N.A. 10,000~24,999 N.A. 3,674 N.A.

Black 7,251 528,164 857 403,166 4,761 135,296 6,394 124,998

Hispanic 6,594 1,162,806 1,078 879,929 9,670 266,018 5,516 282,877

Pacific Islander N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

Connecticut

White Non-Hispanic 255,021 125,539,640 65,714 117,133,443 761,202 25,003,041 189,308 8,406,196
37

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 56,586 89,318,585 18,385 87,509,700 346,302 10,780,041 38,201 1,808,885

American Indian/Alaska Native 288 55,226 56 49,898 1,423 18,542 231 5,328

Asian 1,499 N.A. 732 472,660 2,976 73,546 766 N.A.

Black 2,707 184,549 322 144,443 3,450 43,258 2,385 40,106

Hispanic 898 503,859 159 426,546 1,517 33,284 739 77,313

Pacific Islander 3 N.A. 0 0 0 0 3 N.A.

Delaware

White Non-Hispanic 47,034 21,028,393 13,578 19,487,688 162,477 4,003,710 33,456 1,540,705

All Firms in the State 45,297 52,900,995 14,500 51,303,513 345,685 13,482,410 30,797 1,597,482

American Indian/Alaska Native 66 N.A. 32 N.A. 250~499 N.A. 34 N.A.

Asian 2,412 N.A. 1,529 N.A. 5,000~9,999 N.A. 883 N.A.

Black 10,909 1,334,651 1,232 N.A. 10,000~24,999 N.A. 9,677 N.A.

Hispanic 2,153 663,650 377 619,753 4,349 163,579 1,776 43,897

Pacific Islander 11 N.A. 6 N.A. 0~19 N.A. 4 N.A.

District of Columbia

White Non-Hispanic 25,562 19,614,137 7,929 18,678,258 141,756 5,737,854 17,633 935,879

All Firms in the State 1,301,920 828,429,130 335,393 789,239,505 5,449,574 133,351,371 966,527 39,189,625

American Indian/Alaska Native 10,546 1,518,789 1,789 1,265,839 10,593 201,623 8,758 252,949

Asian 32,280 10,341,917 12,563 9,433,034 95,924 1,496,921 19,717 908,883

Black 59,732 4,092,155 6,424 2,925,260 31,035 556,186 53,308 1,166,895

Hispanic 193,902 35,351,266 40,877 31,634,998 192,761 4,591,368 153,025 3,716,268

Pacific Islander 1,489 125,391 159 93,388 995 20,178 1,331 32,003

Florida

White Non-Hispanic 983,675 358,641,382 254,246 327,075,306 2,558,429 61,444,542 729,428 31,566,075

All Firms in the State 568,552 580,344,999 146,841 561,811,488 3,047,650 81,591,286 421,711 18,533,511

American Indian/Alaska Native 4,470 495,465 682 345,077 4,203 81,456 3,788 150,388

Asian 17,957 6,308,641 7,162 N.A. 25,000~49,999 N.A. 10,795 N.A.

Black 55,766 4,110,716 6,073 3,111,892 40,593 741,509 49,693 998,824

Hispanic 11,741 1,887,924 1,772 1,612,910 12,543 292,330 9,968 275,014

Pacific Islander 201 107,600 34 N.A. 500~999 N.A. 167 N.A.

Georgia

White Non-Hispanic 466,483 205,307,853 121,222 189,975,262 1,447,019 35,090,805 345,261 15,332,591
38

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 93,981 55,361,257 23,415 52,869,179 412,304 10,418,079 70,566 2,492,078

American Indian/Alaska Native 458 48,134 33 19,168 142 3,066 425 28,966

Asian 43,710 13,557,741 11,269 12,540,709 113,002 2,794,630 32,440 1,017,033

Black 638 34,165 168 20,562 561 7,502 470 13,603

Hispanic 4,153 277,047 360 178,206 2,276 45,306 3,793 98,841

Pacific Islander 6,924 965,430 962 848,589 10,642 220,230 5,963 116,841

Hawaii

White Non-Hispanic 34,260 12,626,844 7,125 11,646,743 111,108 2,581,564 27,136 980,100

All Firms in the State 109,758 65,838,870 29,920 62,822,154 401,125 9,642,721 79,838 3,016,716

American Indian/Alaska Native 1,239 301,126 260 271,031 1,883 41,489 980 30,094

Asian 991 188,027 349 N.A. 2,500~4,999 N.A. 642 N.A.

Black 164 17,535 16 14,220 231 7,321 148 3,315

Hispanic 2,844 240,303 444 195,451 2,617 47,194 2,400 44,853

Pacific Islander 37 4,303 3 N.A. 20~99 N.A. 34 N.A.

Idaho

White Non-Hispanic 101,787 34,093,278 26,839 31,328,053 243,927 4,958,294 74,948 2,765,226

All Firms in the State 882,053 993,116,732 240,024 965,260,429 4,994,344 155,799,469 642,029 27,856,303

American Indian/Alaska Native 3,945 664,108 650 570,584 4,879 137,517 3,295 93,524

Asian 36,292 14,680,727 13,163 13,646,665 80,327 2,247,920 23,129 1,034,063

Black 41,244 3,913,240 3,747 3,253,027 35,034 787,773 37,497 660,213

Hispanic 31,010 4,814,853 6,320 4,173,772 71,692 1,551,678 24,689 641,081

Pacific Islander 565 46,826 42 32,585 263 14,258 524 14,240

Illinois

White Non-Hispanic 748,671 395,865,517 200,046 372,801,755 2,601,815 73,560,951 548,625 23,063,763

All Firms in the State 413,400 407,270,539 109,795 397,394,356 2,413,379 63,638,242 303,605 9,876,183

American Indian/Alaska Native 2,898 396,221 422 332,342 2,776 53,388 2,476 63,879

Asian 4,667 1,902,381 1,910 1,778,509 17,134 359,019 2,757 123,871

Black 11,107 1,192,143 1,440 1,035,570 10,775 199,604 9,666 156,573

Hispanic 4,277 817,765 782 704,987 6,692 145,410 3,495 112,779

Pacific Islander N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

Indiana

White Non-Hispanic 381,083 168,355,673 97,709 159,386,534 1,297,165 29,838,868 283,376 8,969,140
39

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 227,562 206,328,836 61,633 201,282,401 1,147,538 27,249,322 165,929 5,046,435

American Indian/Alaska Native 949 96,501 176 86,990 748 11,022 773 9,510

Asian 1,703 339,617 708 N.A. 2,500~4,999 N.A. 995 N.A.

Black 1,353 233,466 262 216,904 1,931 41,387 1,090 16,561

Hispanic 1,343 232,858 329 214,655 2,500 41,304 1,014 18,204

Pacific Islander 38 2,551 11 N.A. 0~19 N.A. 27 N.A.

Iowa

White Non-Hispanic 215,946 91,072,540 55,238 86,462,489 652,367 14,148,540 160,708 4,610,051

All Firms in the State 213,392 184,199,987 57,541 179,136,345 1,025,466 25,867,970 155,851 5,063,642

American Indian/Alaska Native 2,318 453,199 540 408,324 3,231 71,083 1,778 44,875

Asian 2,442 724,695 1,008 662,862 7,549 131,417 1,435 61,833

Black 3,396 593,636 524 547,688 5,834 174,203 2,872 45,948

Hispanic 3,547 403,045 728 350,937 5,755 86,965 2,818 52,108

Pacific Islander 184 2,959 13 1,159 43 322 171 1,800

Kansas

White Non-Hispanic 195,648 80,539,519 49,958 75,902,644 589,929 13,974,639 145,690 4,636,875

All Firms in the State 281,551 245,795,924 68,328 238,602,609 1,389,368 33,299,966 213,223 7,193,315

American Indian/Alaska Native 3,069 242,694 391 149,055 2,257 35,864 2,678 93,639

Asian 2,515 N.A. 1,076 N.A. 10,000~24,999 N.A. 1,439 61,858

Black 5,629 658,535 611 588,703 7,717 121,353 5,018 69,833

Hispanic 1,481 282,916 388 249,136 3,085 67,295 1,093 33,780

Pacific Islander 80 N.A. 39 N.A. 20~99 N.A. 41 355

Kentucky

White Non-Hispanic 262,554 101,440,102 60,840 94,789,711 744,390 15,774,871 201,715 6,650,392

All Firms in the State 295,679 285,022,192 78,477 277,061,824 1,474,855 36,288,317 217,202 7,960,368

American Indian/Alaska Native 3,230 561,178 300 473,514 3,942 86,176 2,930 87,664

Asian 6,437 1,364,058 2,103 N.A. 10,000~24,999 N.A. 4,335 N.A.

Black 25,782 1,917,295 3,050 1,451,135 27,441 464,477 22,732 466,160

Hispanic 6,645 1,282,958 1,359 1,121,441 9,356 249,926 5,286 161,517

Pacific Islander 52 8,875 9 N.A. 20~99 N.A. 43 N.A.

Louisiana

White Non-Hispanic 246,695 110,196,854 66,135 103,370,493 848,349 18,835,210 180,560 6,826,362
40

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 127,467 63,626,180 31,539 59,925,775 447,772 10,830,416 95,928 3,700,405

American Indian/Alaska Native 1,417 160,997 204 117,439 867 19,272 1,213 43,558

Asian 642 N.A. 276 N.A. 1,000~2,499 N.A. 366 N.A.

Black 257 28,088 36 23,600 346 6,871 221 4,488

Hispanic 545 51,941 139 46,004 677 9,895 406 5,937

Pacific Islander 4 N.A. 3 N.A. 0~19 N.A. 1 N.A.

Maine

White Non-Hispanic 121,422 35,049,479 28,371 31,939,411 273,160 6,280,342 93,051 3,110,068

All Firms in the State 400,203 285,924,027 99,761 274,434,271 1,906,435 54,616,809 300,442 11,489,756

American Indian/Alaska Native 2,421 330,961 443 275,900 2,605 64,519 1,978 55,061

Asian 21,977 5,665,949 7,707 N.A. 50,000~99,999 N.A. 14,271 N.A.

Black 47,614 3,964,600 4,214 3,180,637 41,755 946,386 43,399 783,964

Hispanic 11,158 1,567,197 1,793 1,334,552 13,688 398,018 9,365 232,645

Pacific Islander 186 128,387 69 N.A. 2,500~4,999 N.A. 117 N.A.

Maryland

White Non-Hispanic 305,403 126,532,347 77,944 118,014,850 994,453 25,940,354 227,461 8,517,498

All Firms in the State 537,150 517,291,479 135,309 498,376,149 2,852,762 93,491,900 401,841 18,915,330

American Indian/Alaska Native 3,428 295,317 579 195,226 2,668 82,551 2,849 100,091

Asian 12,598 N.A. 4,375 N.A. 25,000~49,999 N.A. 8,222 N.A.

Black 11,834 1,013,134 1,239 804,314 8,267 188,731 10,595 208,819

Hispanic 12,725 1,622,815 1,627 1,316,470 11,146 287,511 11,098 306,345

Pacific Islander 131 N.A. 3 N.A. 0~19 N.A. 128 N.A.

Massachusetts

White Non-Hispanic 482,684 217,628,929 117,043 202,162,370 1,399,440 41,300,856 365,641 15,466,560

All Firms in the State 677,473 715,375,586 184,849 696,806,219 3,823,973 117,302,530 492,624 18,569,367

American Indian/Alaska Native 5,802 720,384 1,016 594,295 7,055 127,831 4,786 126,089

Asian 11,560 5,456,647 4,261 4,918,464 40,671 1,091,511 7,299 538,183

Black 24,954 4,623,414 2,843 4,157,785 37,688 921,765 22,111 465,629

Hispanic 9,997 1,967,086 1,487 1,745,979 13,763 330,976 8,509 221,107

Pacific Islander 117 34,610 36 33,696 219 5,683 80 914

Michigan

White Non-Hispanic 611,030 302,347,579 164,185 286,028,336 2,078,945 55,800,340 446,846 16,319,243
41

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 410,634 382,363,126 104,802 369,836,727 2,138,561 60,829,888 305,832 12,526,399

American Indian/Alaska Native 2,413 514,907 350 404,218 2,310 57,508 2,062 110,689

Asian 5,330 1,697,579 1,683 1,506,698 15,753 259,432 3,647 190,880

Black 4,024 523,126 472 459,125 4,352 99,939 3,553 64,002

Hispanic 3,616 391,714 414 294,093 4,960 63,331 3,202 97,621

Pacific Islander 105 14,514 42 8,039 169 1,821 63 6,474

Minnesota

White Non-Hispanic 385,034 181,755,414 94,005 172,208,098 1,240,172 31,581,320 291,028 9,547,316

All Firms in the State 167,907 122,887,932 45,615 118,235,010 866,254 18,434,395 122,292 4,652,922

American Indian/Alaska Native 1,088 209,854 222 179,764 1,648 30,658 865 30,089

Asian 2,386 714,788 851 N.A. 5,000~9,999 N.A. 1,535 N.A.

Black 17,617 852,824 2,205 559,182 9,773 121,522 15,412 293,642

Hispanic 988 124,079 169 99,015 1,325 23,520 819 25,065

Pacific Islander N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A.

Mississippi

White Non-Hispanic 141,862 62,706,180 38,945 58,619,064 494,465 10,139,909 102,916 4,087,118

All Firms in the State 411,403 382,797,052 111,852 372,254,747 2,196,997 57,986,062 299,551 10,542,305

American Indian/Alaska Native 4,106 625,993 774 506,782 5,839 112,352 3,332 119,211

Asian 4,834 1,279,682 2,229 N.A. 10,000~24,999 N.A. 2,606 N.A.

Black 13,678 1,261,398 2,142 1,060,253 14,503 252,769 11,536 201,145

Hispanic 4,107 586,821 786 460,460 6,141 146,268 3,320 126,361

Pacific Islander 140 70,580 46 N.A. 500~999 N.A. 94 N.A.

Missouri

White Non-Hispanic 374,198 158,363,396 97,989 149,511,319 1,149,500 27,175,870 276,210 8,852,076

All Firms in the State 93,677 37,668,225 25,974 35,570,987 269,469 5,447,948 67,703 2,097,238

American Indian/Alaska Native 1,912 165,265 438 130,417 1,504 22,677 1,474 34,848

Asian 369 N.A. 137 N.A. 1,000~2,499 N.A. 232 N.A.

Black 62 N.A. 15 N.A. 20~99 N.A. 47 N.A.

Hispanic 1,006 114,897 184 92,300 785 10,265 822 22,597

Pacific Islander 74 N.A. 35 N.A. 100~249 N.A. 39 N.A.

Montana

White Non-Hispanic 87,739 22,677,959 23,218 20,708,770 182,078 3,400,900 64,520 1,969,192
42

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 138,762 137,755,012 38,594 134,465,728 687,525 16,035,060 100,168 3,289,284

American Indian/Alaska Native 799 99,826 107 90,889 1,157 21,770 691 8,937

Asian 869 N.A. 389 N.A. 2,500~4,999 N.A. 479 N.A.

Black 1,565 129,219 238 110,006 1,874 29,722 1,328 19,213

Hispanic 1,437 141,202 346 109,844 2,357 29,144 1,091 31,358

Pacific Islander 8 N.A. 1 N.A. 0~19 N.A. 7 N.A.

Nebraska

White Non-Hispanic 130,254 57,874,707 34,529 54,851,288 381,931 8,261,078 95,725 3,023,419

All Firms in the State 129,757 102,813,070 35,131 97,814,925 757,255 19,291,136 94,626 4,998,145

American Indian/Alaska Native 1,231 244,734 183 202,138 1,475 36,787 1,048 42,595

Asian 4,835 1,842,413 1,290 1,662,499 19,785 437,146 3,544 179,914

Black 2,796 225,880 344 183,015 2,344 53,820 2,452 42,865

Hispanic 6,565 1,220,858 1,661 1,064,118 11,487 243,002 4,904 156,740

Pacific Islander 170 25,341 54 21,193 145 4,877 117 4,148

Nevada

White Non-Hispanic 109,282 53,465,671 28,204 49,521,490 429,870 10,803,488 81,078 3,944,181

All Firms in the State 115,747 79,303,771 30,452 75,916,752 507,990 13,494,257 85,295 3,387,019

American Indian/Alaska Native 1,038 156,740 123 126,752 897 19,741 915 29,987

Asian 1,114 N.A. 586 N.A. 5,000~9,999 N.A. 528 N.A.

Black 326 32,351 54 26,200 506 11,137 272 6,150

Hispanic 735 116,696 122 98,137 1,043 25,749 613 18,559

Pacific Islander 51 N.A. 27 N.A. 20~99 N.A. 24 N.A.

New Hampshire

White Non-Hispanic 109,311 38,988,681 27,038 35,781,187 290,934 7,186,890 82,273 3,207,494

All Firms in the State 654,227 690,007,714 194,118 667,137,703 3,298,375 113,091,959 460,109 22,870,011

American Indian/Alaska Native 2,375 364,056 461 300,492 2,347 57,733 1,913 63,564

Asian 40,999 16,666,235 15,065 15,376,327 79,174 2,304,250 25,934 1,289,907

Black 26,500 2,160,441 3,236 1,580,808 16,862 375,877 23,264 579,634

Hispanic 36,116 5,107,287 7,355 4,276,407 28,134 665,530 28,761 830,879

Pacific Islander 433 67,836 89 59,989 466 10,044 344 7,847

New Jersey

White Non-Hispanic 534,493 275,937,451 155,731 257,739,817 1,702,519 50,932,927 378,763 18,197,634
43

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 131,685 79,752,084 34,170 76,492,214 506,662 11,570,103 97,515 3,259,870

American Indian/Alaska Native 6,838 579,671 566 473,630 3,398 85,477 6,272 106,041

Asian 2,384 544,889 961 488,803 5,972 129,249 1,423 56,085

Black 1,132 142,847 165 130,131 1,121 20,051 967 12,715

Hispanic 28,285 3,667,526 6,737 3,143,851 39,951 651,717 21,548 523,675

Pacific Islander 164 33,100 60 31,282 402 3,555 103 1,818

New Mexico

White Non-Hispanic 90,202 30,229,000 22,900 28,042,314 256,471 5,313,066 67,302 2,186,687

All Firms in the State 1,509,829 1,488,912,652 402,266 1,438,125,325 6,799,764 248,006,938 1,107,563 50,787,327

American Indian/Alaska Native 6,443 1,417,279 1,074 1,206,603 5,270 155,336 5,369 210,675

Asian 122,753 31,441,072 34,086 28,372,628 184,855 4,195,107 88,667 3,068,444

Black 86,469 5,067,265 7,822 3,445,063 45,703 1,005,200 78,647 1,622,202

Hispanic 104,189 10,311,271 13,667 8,120,010 56,464 1,607,504 90,522 2,191,261

Pacific Islander 506 170,036 44 162,903 263 25,014 462 7,132

New York

White Non-Hispanic 1,169,250 590,377,219 317,303 552,447,405 3,493,092 110,964,695 851,948 37,929,813

All Firms in the State 570,484 518,648,589 149,186 500,546,338 3,067,214 77,145,248 421,298 18,102,251

American Indian/Alaska Native 7,148 911,903 1,275 737,230 7,942 141,365 5,873 174,673

Asian 7,894 2,453,872 3,211 N.A. 10,000~24,999 N.A. 4,682 N.A.

Black 39,901 2,299,285 5,441 1,701,399 33,914 441,415 34,460 597,886

Hispanic 7,270 1,080,439 1,384 908,909 8,305 193,271 5,887 171,529

Pacific Islander 156 7,306 17 N.A. 20~99 N.A. 139 N.A.

North Carolina

White Non-Hispanic 496,340 215,325,597 128,389 201,980,139 1,619,411 36,727,819 367,951 13,345,456

All Firms in the State 55,266 35,005,958 16,357 33,831,667 237,347 4,959,823 38,909 1,174,291

American Indian/Alaska Native 752 147,068 178 118,990 1,111 16,721 575 28,079

Asian 276 N.A. 89 60,182 797 11,946 187 N.A.

Black 99 N.A. 8 N.A. 100~249 N.A. 91 N.A.

Hispanic 444 22,459 78 17,050 614 3,219 366 5,409

Pacific Islander 3 N.A. 0 0 0 0 3 N.A.

North Dakota

White Non-Hispanic 51,976 20,874,963 14,508 19,781,402 150,183 2,991,776 37,467 1,093,562
44

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 781,284 796,505,791 202,528 775,731,513 4,647,653 128,334,527 578,756 20,774,278

American Indian/Alaska Native 5,124 1,074,343 682 932,874 9,357 204,934 4,442 141,468

Asian 11,021 4,336,430 4,678 N.A. 25,000~49,999 N.A. 6,344 N.A.

Black 26,970 3,946,848 3,486 3,499,457 32,719 788,525 23,484 447,390

Hispanic 6,448 1,512,809 1,199 1,283,564 11,353 310,617 5,249 229,245

Pacific Islander 377 266,723 90 N.A. 1,000~2,499 N.A. 287 N.A.

Ohio

White Non-Hispanic 713,720 323,898,636 179,124 305,404,652 2,492,930 61,591,731 534,596 18,493,985

All Firms in the State 280,722 172,370,196 66,272 164,997,318 1,077,678 25,171,033 214,450 7,372,878

American Indian/Alaska Native 15,066 2,645,736 2,794 2,266,674 19,276 380,084 12,272 379,062

Asian 3,892 882,845 1,401 N.A. 5,000~9,999 N.A. 2,490 N.A.

Black 5,309 333,094 618 259,565 4,847 77,957 4,691 73,528

Hispanic 4,349 771,529 648 690,334 5,985 125,248 3,701 81,194

Pacific Islander 108 14,711 31 N.A. 250~499 N.A. 77 N.A.

Oklahoma

White Non-Hispanic 244,306 88,558,638 55,743 82,201,265 634,057 13,410,519 188,563 6,357,373

All Firms in the State 291,596 220,084,989 80,443 211,804,567 1,277,418 34,397,004 211,153 8,280,422

American Indian/Alaska Native 2,861 372,608 431 299,502 2,505 55,871 2,430 73,106

Asian 7,172 2,033,444 2,492 N.A. 10,000~24,999 N.A. 4,680 N.A.

Black 2,219 436,156 357 398,916 2,968 66,799 1,862 37,240

Hispanic 6,022 1,073,638 1,225 950,676 9,665 210,796 4,798 122,962

Pacific Islander 341 55,282 70 N.A. 250~499 N.A. 271 N.A.

Oregon

White Non-Hispanic 265,360 109,598,124 70,144 102,532,738 753,922 18,619,000 195,216 7,065,386

All Firms in the State 837,756 802,492,149 222,450 778,115,447 4,740,610 132,473,592 615,306 24,376,702

American Indian/Alaska Native 5,161 505,273 951 388,532 5,288 73,590 4,210 116,741

Asian 17,264 4,922,046 6,006 4,323,899 42,852 1,142,047 11,258 598,146

Black 19,791 1,993,512 2,909 1,652,223 19,979 437,813 16,882 341,288

Hispanic 7,893 1,273,320 1,785 984,265 10,090 227,006 6,108 289,055

Pacific Islander 133 21,846 22 20,461 131 3,779 112 1,384

Pennsylvania

White Non-Hispanic 769,496 359,182,314 196,492 337,081,308 2,503,221 64,496,312 573,006 22,101,006
45

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 80,934 52,930,316 24,373 50,755,745 386,544 10,040,593 56,561 2,174,571

American Indian/Alaska Native 625 80,213 80 N.A. 250~499 N.A. 545 N.A.

Asian 1,065 N.A. 381 N.A. 2,500~4,999 N.A. 684 N.A.

Black 1,269 124,434 181 104,097 1,935 26,805 1,087 20,338

Hispanic 2,186 207,036 447 157,405 1,890 31,264 1,739 49,631

Pacific Islander 45 N.A. 39 N.A. 250~499 N.A. 6 N.A.

Rhode Island

White Non-Hispanic 73,600 30,290,091 21,363 28,361,707 228,233 5,505,513 52,238 1,928,385

All Firms in the State 260,342 213,486,429 71,547 206,431,441 1,425,681 33,619,107 188,795 7,054,988

American Indian/Alaska Native 2,229 199,917 409 153,006 3,066 41,640 1,820 46,911

Asian 3,450 N.A. 1,524 N.A. 10,000~24,999 N.A. 1,926 N.A.

Black 23,216 1,408,925 3,148 1,030,411 17,713 234,660 20,068 378,514

Hispanic 2,036 250,730 505 212,435 2,783 40,148 1,531 38,294

Pacific Islander 81 N.A. 4 N.A. 20~99 N.A. 76 N.A.

South Carolina

White Non-Hispanic 222,772 91,765,211 61,179 85,567,750 752,420 16,401,357 161,594 6,197,460

All Firms in the State 65,791 50,181,052 19,093 48,715,035 275,019 5,553,107 46,698 1,466,017

American Indian/Alaska Native 955 221,916 178 198,998 2,773 37,177 777 22,918

Asian 300 N.A. 125 51,460 1,299 15,687 175 N.A.

Black 150 17,294 22 N.A. 20~99 N.A. 128 N.A.

Hispanic 261 58,514 75 54,803 346 6,633 186 3,711

Pacific Islander 3 N.A. 0 0 0 0 3 N.A.

South Dakota

White Non-Hispanic 62,241 25,182,766 17,117 23,799,990 174,306 3,393,755 45,123 1,382,777

All Firms in the State 415,934 362,587,045 98,063 347,224,486 2,199,361 55,445,181 317,871 15,362,559

American Indian/Alaska Native 3,746 546,041 568 471,084 4,518 101,939 3,178 74,958

Asian 5,176 1,749,406 2,017 N.A. 10,000~24,999 N.A. 3,159 N.A.

Black 20,196 1,644,529 2,730 1,276,080 17,583 334,204 17,466 368,449

Hispanic 3,639 684,426 702 557,852 7,330 139,067 2,937 126,573

Pacific Islander 120 13,483 17 N.A. 20~99 N.A. 102 N.A.

Tennessee

White Non-Hispanic 374,323 162,791,052 84,991 151,725,038 1,150,447 27,609,883 289,332 11,066,012
46

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 1,525,972 1,415,535,633 348,166 1,362,352,328 7,074,209 196,697,293 1,177,806 53,183,305

American Indian/Alaska Native 15,668 3,320,188 2,747 2,853,049 26,941 481,112 12,921 467,139

Asian 59,317 18,225,704 18,881 16,174,945 146,348 2,421,429 40,437 2,050,759

Black 60,427 6,857,330 6,684 5,695,691 70,904 1,469,459 53,742 1,161,639

Hispanic 240,396 39,481,767 44,837 33,854,797 289,142 5,659,883 195,559 5,626,970

Pacific Islander 908 623,629 252 612,632 1,853 62,940 656 10,997

Texas

White Non-Hispanic 1,125,932 509,068,565 254,372 472,125,809 3,419,893 85,679,447 871,561 36,942,756

All Firms in the State 169,164 119,100,391 42,076 114,377,759 797,153 19,272,466 127,088 4,722,632

American Indian/Alaska Native 1,428 140,070 187 108,884 1,317 20,041 1,241 31,186

Asian 2,083 529,736 793 480,059 6,869 101,054 1,290 49,677

Black 440 23,005 35 16,831 327 5,480 406 6,173

Hispanic 4,740 455,385 847 372,776 5,947 85,310 3,893 82,608

Pacific Islander 296 68,982 71 62,286 285 6,793 225 6,696

Utah

White Non-Hispanic 156,050 60,739,644 37,149 56,424,794 472,078 10,649,865 118,902 4,314,851

All Firms in the State 67,488 33,469,226 18,181 31,930,872 232,647 5,502,895 49,307 1,538,354

American Indian/Alaska Native 751 178,902 116 159,164 732 18,053 634 19,738

Asian 297 N.A. 139 N.A. 500~999 N.A. 157 N.A.

Black 168 37,324 36 35,449 341 4,481 132 1,876

Hispanic 898 184,130 157 168,964 1,551 29,797 741 15,166

Pacific Islander 7 N.A. 4 N.A. 20~99 N.A. 3 N.A.

Vermont

White Non-Hispanic 63,321 18,619,355 16,060 17,167,111 143,062 3,079,422 47,261 1,452,244

All Firms in the State 480,122 415,092,587 128,850 402,260,820 2,571,489 69,930,776 351,272 12,831,767

American Indian/Alaska Native 3,280 621,617 646 571,739 5,924 178,260 2,634 49,878

Asian 22,126 4,408,583 6,673 3,910,627 46,706 1,080,965 15,453 497,956

Black 33,539 3,408,165 4,956 2,878,899 46,971 905,842 28,583 529,267

Hispanic 13,703 1,808,975 2,189 1,596,173 19,375 529,580 11,515 212,802

Pacific Islander 315 30,259 48 21,407 213 5,729 267 8,852

Virginia

White Non-Hispanic 395,262 168,456,870 104,982 158,166,287 1,312,868 32,668,525 290,281 10,290,583
47

Table A.5 Minority-Owned Businesses, Employment, Sales, and Payroll by Race or Ethnicity and State, 1997

State Minority/Nonminority Group Number of

Firms

Sales of All

Firms ($1,000)

Number of

Employer

Firms

Sales of

Employer

Firms ($1,000)

Number of

Employees*

Annual

Payroll

($1,000)

Number of

Nonemployer

Firms

Non-employer

Firms' Sales

($1,000)

All Firms in the State 447,433 357,322,932 129,780 344,895,438 2,023,814 60,792,792 317,653 12,427,494

American Indian/Alaska Native 4,689 1,202,989 974 1,096,283 14,242 313,597 3,716 106,706

Asian 22,890 7,818,212 7,254 7,154,502 47,438 924,746 15,636 663,710

Black 5,553 504,109 893 411,968 8,321 125,629 4,660 92,141

Hispanic 10,009 1,711,293 2,286 1,516,628 18,830 350,383 7,723 194,665

Pacific Islander 420 189,304 96 184,936 914 37,311 324 4,368

Washington

White Non-Hispanic 391,175 182,980,476 108,809 172,423,683 1,168,967 33,319,958 282,365 10,556,794

All Firms in the State 111,737 77,527,532 31,789 75,364,314 529,192 12,397,238 79,948 2,163,218

American Indian/Alaska Native 1,017 127,306 171 111,356 1,078 17,910 846 15,950

Asian 1,235 N.A. 678 N.A. 5,000~9,999 N.A. 557 N.A.

Black 1,148 87,649 129 76,923 1,018 14,203 1,019 10,726

Hispanic 940 95,910 179 81,758 1,160 26,584 761 14,152

Pacific Islander 5 N.A. 2 N.A. 0~19 N.A. 3 N.A.

West Virginia

White Non-Hispanic 103,994 35,182,918 28,029 33,176,378 292,673 5,884,513 75,966 2,006,541

All Firms in the State 366,436 367,841,279 109,409 358,863,640 2,246,488 59,198,866 257,027 8,977,639

American Indian/Alaska Native 2,338 1,135,975 699 1,080,481 6,738 202,160 1,639 55,494

Asian 3,620 1,414,290 1,405 1,249,378 14,414 368,036 2,214 164,912

Black 4,848 550,114 798 462,623 8,179 139,501 4,050 87,490

Hispanic 3,020 816,817 494 719,827 5,358 149,629 2,526 96,991

Pacific Islander 133 73,517 30 71,183 582 16,580 103 2,334

Wisconsin

White Non-Hispanic 343,287 184,601,435 98,558 176,647,182 1,330,545 32,443,276 244,729 7,954,253

All Firms in the State 49,376 26,742,915 14,920 25,722,961 153,878 3,504,436 34,456 1,019,954

American Indian/Alaska Native 477 N.A. 95 N.A. 500~999 N.A. 382 N.A.

Asian 284 N.A. 146 N.A. 1,000~2,499 N.A. 138 5,683

Black 232 12,670 64 N.A. 100~249 N.A. 168 N.A.

Hispanic 1,239 116,882 319 99,606 1,645 26,598 920 17,276

Pacific Islander 10 N.A. 10 N.A. 100~249 N.A. 0 0

Wyoming

White Non-Hispanic 45,487 13,298,759 12,887 12,394,272 98,747 1,980,528 32,601 904,487

Notes: N.A. = Not available because of small sample size. * Where a range is shown, data are not available to provide a specific estimate.

Source: U.S. Department of Commerce, Bureau of the Census, Survey of Minority-Owned Business Enterprises.
48