Minority Business Development Agency

1401 Constitution Avenue, NW

Washington, DC 20230

202-482-2332

www.mbda.gov

Entrepreneurial Parity Offers Greater Economic Impact

Entrepreneurial 

parity is defined 

as reaching 

proportionality 

between the African 

American adult 

population and 

business measures, 

such as number of 

firms, gross receipts, 

and employees. 

Quick Facts a

◊ There are 1.9 million African American-owned firms 

in the U.S. 

◊ African American-owned firms contribute $136 

billion in U.S. economic output and 910,000 jobs 

per year.

◊ African American-owned firms with employees 

average 9 workers and $912,000 in annual 

receipts.

◊ Between 2002 and 2007, the number of African 

American-owned firms grew 60 percent. 

◊ African American-owned firms are more 

concentrated in California, Florida, Georgia, Illinois, 

Maryland, New York, and Texas.

a U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 

b U.S. Census Bureau, Annual population estimates, June 2010

c U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 

d U.S. Census Bureau, Characteristics of U.S. Exporting Firms, June 2012

e

 University of Georgia, Selig Center for Economic Growth, The Multicultural Economy 2009

African 

American

Firms

All Minority

Firms

Non-Minority 

Firms

Number of 

firms

1.9

million

5.8

million

20.1

million

Combined gross 

receipts

$135.7

billion

$1.0 

trillion

$9.8 

trillion

Average gross 

receipts

$71

thousand

$178

thousand

$488

thousand

Number of firms 

with employees

107

thousand

767

thousand

4.3

million

Combined

receipts of firms 

with employees

$97.1 

billion

$860.5 

billion

$9.1 

trillion

Average receipts 

of firms with 

employees

$912

thousand

$1.1

million

$2.1

million

Number of paid 

employees 

910

thousand

5.8 

million

50.1 

million

Economic Impact: $136 Billion in Revenues and 910,000 Jobs a

a,c

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

$0

$10

$20

$30

$40

0

1

2

3

4

5

6

7

8

Entrepreneurial Parity and African American-Owned Firms

1.9

3.3

Actual Parity

Number of Firms (in millions)

$0.14

$1.4

Actual Parity

Gross Receipts (in trillions)

.91

7.1

Actual Parity

Paid Employees (in millions)

Population Buying Power e

African American All Minority Non-Minority

$910.4 billion $2.46 trillion $8.25 trillion

Fact Sheet

African American-Owned Firms
Exports and Global Reach d

◊ African American-owned firms that export 

average $8.1 million in annual receipts, 

compared to their non-exporting counterparts 

who average $64,000.

◊ Exports represent 5.1 percent of total revenue for 

African American-owned exporting companies, 

compared to 5.4 percent for all non-minorityexporting firms. 

◊ 2.9 percent of African American-owned firms 

export goods and services, compared to 4.7 

percent of non-minority firms.

Growth in Number of African American-Owned Firms (2002—2007) c

One percent of African American-owned firms are considered highrevenue. These firms are responsible for 57% of the total receipts 

and 61% of all jobs created by African American firms. 

Industry Sectors of African American-Owned Firms

5%

8%

33%

19%

11%

9%

9% 7%

Healthcare & Social Assistance

Administrative Support, Waste

Management & Remediation

Transportation & Warehousing

Professional, Scientic &

Technical Services

Retail

Construction

Real Estate & Leasing

Other

a

-10%

0%

10%

20%

30%

40%

50%

60%

African American Firms Non-Minority Firms

Gross Receipts

Growth of African American-Owned Firms (2002-2007)

Employees

53%

21%

-1%

21%

60%

Number of

Firms

9%

a,b

0%

20%

40%

60%

80%

Firms $1 Million and Above Firms Under $1 Million

Total Receipts Total Employees

43%

57% 61%

39%

High-Revenue African American-Owned Firms

(Annual receipts over $1 million)

a

0 to < 45%

-20 to < 0%

45 to < 61%

61 to < 100%

100 to 130%

Suppressed data

WA

OR

MT ND

MN

WI

NV

ID

WY

SD

IA

CA

AZ

UT

TX

FL

NE

KS CO

NM

AK

OK AR

LA

MI

OH

IN IL

TN

KY

GA MS

SC

NC

WV VA

PA

NY

VT

ME

NH

MA

AL

CT

NJ

HI

MO

Other sectors include agriculture, utilities, manufacturing, 

wholesale, information, finance & insurance, accommodation & 

food services, and more.

MD

RI

DE

Growth Rates

Visit www.mbda.gov for more information about U.S. minority-owned firms.