U.S. Census Bureau

Survey of Business OwneSurvey of Business Owne

Ch t i ti f B i Charac

teristics o

f

Bus

inesses 

Characteristics of Business Ow

2007

Census Bureau Economic Data Census Bureau Economic Data

June 14, 2011
Presenters

Host Stanley J. Rolark

Chief Public Information Office Chief, Public Information OfficeU.S. Census Bureau 

S fi di Th L M b J Survey findings Thomas L. Mesenbourg, Jr.

Deputy Director and Chief OperatU.S. Census Bureau

Data analysis David Hinson

National DirectorMinority Business Development A

Jun
Resources for Today’s New

C f on

ference

Come to Come to www census gov www.census.gov and click on th

and click on th

at the top left corner to obtain –

• Today’s PowerPoint Presentation• News Release – and More!• Link to Survey of Business Owners Ho

Page

• Link to Guidance on Accessing SBO D

the American FactFinder

www.census.gov/econ/sbo Jun
About the Survey

• Part of the Economic Census taken every 

years for years ending in years for years ending in “2” and “7”

• The only comprehensive, regularly collec

data for businesses and business owners 

- Minority status

 Race  Ethnicity (Hispanic origin of any race

- Gender- Veteran status

www.census.gov/econ/sbo Jun
Business Ownership Business Ownership

Categories of ownership are based on the sCategories of ownership are based on the s

the person or persons who owned 51% or mthe stock or equity in the business in 2007.

Estimates for e

q p

ual 50% / 50% ownershi

p b

women/men, Hispanics/non-Hispanics, minorities/nonminorities, and veterans/nonvare tabl d l u ate

d separately.

www.census.gov/econ/sbo Jun
A Look at the 

Characteristics of BusinessCharacteristics of Business

2007

www.census.gov/econ/sbo Jun
Characteristics of Businesse

Characteristics of Businesse

Provides detailed data for all respondent firms byownership group for twenty ownership group for twenty

-two business charac

two business charac

that include:• Whether the business was family Whether the business was family

-owned hom

owned, hom

franchised

• Types of customers and workers

• Sources and amount of financing• Whether the business outsourced or exported• Language(s) used for business transactions Language(s) used for business transactions• Use of the Internet and e-commerce• Employer-paid benefits

www.census.gov/econ/sbo Jun
Select Business Characteristic

Respondent Firms: 2007 Respondent Firms: 2007

% of

% of 

sales and 

respondent

firms

receipts for 

respondent firms

FAMILY-OWNED? Total reporting1 100 100

Family-owned 28 42Not family-owned 72 58

HOME-BASED? Total reporting1 100 100

Home-b d ase

d 52

3

Not home-based 48 97

FRANCHISED? Total reporting1 100 100

Franchised 2 3Not franchised 98 97

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail ma

y not add to total because of roundin

g. 

www.census.gov/econ/sbo Jun

y g
Family-Owned Businesses 

S l O hi G 2S

e

lect 

Ownership 

Groups: 2

All firms 28

Total reporting firms: 13,706,504

15

12

28

/

Men‐owned

Women‐owned

All firms

29

21

86

Nonminority

Minority

Equally men‐/women‐owned

Fa

27

15

71

Nonveteran

Veteran

Equally minority/nonminority

79

0 50 100

Equally veteran/nonveteran

Percent of total reporting reporting firms

www.census.gov/econ/sbo June 
Home-Based Businesses b

P t i S l t I d t i Percen

tage 

in 

S

e

lec

t

I

n

dus

t

r

ies

% 

respo

Business sectors % of all 

respondent 

firms

firms

and r

in the 

Total for all sectors Total for all sectors 52

Forestry, fishing & hunting, and agricultural 

support services 63 

Construction 70 

Information 65 Professional, scientific, and technical services 63 

Administrative and support and waste 64Administrative and support and waste management and remediation services 64Arts, entertainment, and recreation 64 

www.census.gov/econ/sbo Jun
Franchised Businesses by

Percentage in Select Industries

% 

Business sectors % of all 

respondent 

firms

resp

firms

and 

in the 

Total for all sectors 2 

Retail trade 4 Real estate and rental and leasing 2 

Management of companies and enterprises 10 

Arts, entertainment, and recreation 2 Accommodation and food services 15 

Repair and maintenance, and personal and

laundry services 2 

www.census.gov/econ/sbo Jun
Sources of Capital Used to Start or A

the Business by Gender: 2007 the Business by Gender: 2007

% of 

womenowned

respondent

% of 

menowned

responden

respondent 

firms

responden

firms 

Total reporting1 100 100 

Personal/family savings of owner(s) 55 62 

Personal/family assets other than savings of owner(s) Personal/family assets other than savings of owner(s)

6

7 

Personal/family home equity loan 45Personal/business credit card(s) 11 10 Business loan from federal, state, or local government < 1 1 Government-guaranteed business loan from a bank or < 1 1 financial institution

< 1 1 

Business loan from a bank or financial institution 5 11 Business loan/investment from family/friends 2 3Investment by venture capitalist(s) < 1 < 1 Grants < 1 < 1 Other source(s) of capital 12Don’t know 34None needed 30 20 

1 Includes firms with paid employees and firms with no paid employees.

www.census.gov/econ/sbo Jun

Note: Detail does not add to total because respondents could make multiple selections.
Sources of Capital Used to Start or A

the Business b

y y Minorit

y Status: 2

% of

minorityowned

% of 

nonminority

owned

respondent

firms

respondent

firms

Total reporting1 100 100 

Personal/family savings of owner(s) 61 62 

Personal/family assets other than savings of owner(s) 7 8 Personal/family home equity loan 6 5 Personal/business credit card(s) 11 10 Business loan from federal, state, or local government 1 1 Government-guaranteed business loan from a bank or guaranteed business loan from

a bank or

financial institution 11 Business loan from a bank or financial institution 7 11 Business loan/investment from family/friends 3 3Investment by venture capitalist(s) < 1 < 1 

G t ran s < 1 < 1 Other source(s) of capital 2 2 Don’t know 5 3 None needed 22 21 

1 Includes firms with paid employees and firms with no paid employees.

www.census.gov/econ/sbo Jun

Note: Detail does not add to total because respondents could make multiple selections.
Total Sales of 10 Percent or M

to Customer Categories: 200

% 

% of

respondent

firms

sal

rece

resp

f

Total reporting1 100 

Federal government 2 State and local 

g ,g overnment, includin

g

school districts, transportationauthorities, etc.

5 

Other businesses and/or organizations, 

including distributors of your product(s) 35 including distributors of your product(s)

Individuals 73 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail does not add to total because respondents could make multiple selections. 

www.census.gov/econ/sbo Jun
Types of Workers Used: 200

% of 

employer

r

respondent

firms

r

Total reporting1 100 

Full-time paid employees 75 Part-time paid employees 58 Paid day laborers 5 

Temporary staffing obtained from a temporary 

help service 7 

Leased employees from a leasing service or

professional employer organization 1 professional employer organization

Contractors, subcontractors, independent

contractors or outside consultant 36 

1 Includes firms with any payroll during 2007.Note: Detail does not add to total because res

pondents could make multi

ple selections.

www.census.gov/econ/sbo Jun

p p
Select Business Characteristic

Respondent Firms: 2007 Respondent Firms: 2007

% of

respondent

firms

sales a

for respfor resp

WEBSITE? Total reporting1 100 

Had a business website 25 No business website 75 

E-COMMERCE? Total reporting1 100 

Had e-commerce sales 7 No e-commerce sales 93 

CS O ? 1 PURCHA

SED 

ONLINE

? Total reporting 100 

1 100 

Made purchases online 38 No online purchases 62 

EXPORTED? T t l ti 1 Total reporting 100 

1 100 

Had export sales outside the United States 8 No export sales 92 

1 Includes firms with paid employees and firms with no paid employees.

www.census.gov/econ/sbo Jun

Note: Detail may not add to total because of rounding. 
A Look at the 

Characteristics of Business OwCharacteristics of Business Ow

2007

www.census.gov/econ/sbo Jun
Characteristics of Business Ow

Provides detailed data for all owners of respondefirms by ownership group for nine owner charactinclude:• Owner’s age, education, hours worked, and pr

function in the business

• Year and how the business was acquired Year and how the business was acquired• Whether the owner was born in the U.S.• Whether the business provided the primary so

personal income

• For veterans, whether the owner was military s

disabled

www.census.gov/econ/sbo Jun
Owner’s Agy y e b Ethnicity: 20

% of 

all owners of

% of 

Hispanic 

owners of

non

all owners of o

respondent

firms

owners of

respondent

firms

o

re

Total reporting1 100 100 

Under 25 years old 2 3 25 to 34 years old 10 16 35 to 44 years old 21 29 45 to 54 years old 30 29 55 to 64 years old 24 16 65 years or over 65 years or over 12 6 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail may not add to total because of rounding. 

www.census.gov/econ/sbo Jun
Owner’s Place of Birth: 200

% of

all owners 

f

% of

minority

f

no

o

f

respondent

firms

owners o

f

respondent

firms

ow

res

Total reporting1 Total reporting 100 100 

Born in the United States 86 44 Not born in the United States 14 56 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail may not add to total because of rounding. 

www.census.gov/econ/sbo Jun
Owner’s Highest Level of Scho

Attained Prior to Acquiring tAttained Prior to Acquiring t

Business by Gender: 2007

% f 

% of 

all owners of

respondent

% o

f

women 

owners of

respondent

firms firms 

Total reporting1 100 100 

Less than high school 5 4 

High school graduate 

– diploma or GED 21 21 

Technical, trade, or vocational school 6 7 

Some college, no degree 17 18 

Associate degree Associate degree

6

7

Bachelor’s degree 26 26 Master’s, doctorate, or professional degree 19 16 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail ma

y not add to total because of roundin

g. 

www.census.gov/econ/sbo Jun

y g
Owner’s Highest Level of Scho

Attained Prior to Acquiring tAttained Prior to Acquiring t

Business by Minority Status: 2

% f 

% of all 

owners of

respondent

% o

f

minority 

owners of

respondent

firms firms 

Total reporting1 100 100 

Less than high school 5 12 

Hi h h l d t Hi

g

h sc

hool gra

duate 

– di l GED di

ploma or GED 21 20 

Technical, trade, or vocational school 6 6 

Some college, no degree 17 16 

Assoc ate deg ee iate degree

6

6

Bachelor’s degree 26 22 Master’s, doctorate, or professional degree 19 18 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail ma

y not add to total because of roundin

g. 

www.census.gov/econ/sbo Jun

y g
Owner’s Average Number of H

P W kS tM i Per 

Wee

k

Spen

t

Manag

ing o

Working in the Business: 20

% of

all owners 

of

% of

women

owners of

o

respondent

firms

respondent

firms

re

Total reporting1 100 100 

None 11 14Less than 20 hours 30 36 20 to 39 hours 16 20 40 hours 12 10 41 to 59 hours 19 13 60 hours or more 12 7 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail ma

y not add to total because of roundin

g. 

www.census.gov/econ/sbo Jun

y g
Owner’s Primary Function

in the Business: 2007

% of

% of

women

% of 

all owners of

respondent

firms

women

owners of

respondent

firms

o

re

Total reporting1 100 100 

Providing services and/or

producing sales 61 57 

Managing day Managing day-to-day operations day operations 47 41 

Financial control with the

authority to sign loans, leases,and contracts

40 36 

None of the above 15 20 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail does not add to total because respondents could make multiple selections.

www.census.gov/econ/sbo Jun
Whether the Business Provid

th O ’ P i S the 

Owner

’s 

P

r

imary 

Source 

Personal Income: 2007

% of

all owners of

% of

women

owners of

o

respondent

firms

respondent

firms

re

Total reporting1 100 100 

B i th ’ i Business was the owner’s primary

source of personal income 50 45 

Business was not the owner’s

primary source of personal 50 55 

income 1 Includes firms with paid employees and firms with no paid employees.

Note: Detail may not add to total because of rounding. 

www.census.gov/econ/sbo Jun
Whether the Owner Previous

O d B i H dB Owne

d a 

Bus

iness or 

H

a

d

Be

Self-Employed: 2007

% of

all owners of

% of

veteran

owners of

n

respondent

firms

respondent

firms

r

Total reporting1 100 100 

P i l d th b i Previously owne

d another 

business

or was self-employed 37 44 

Did not previously own another

business or was not 63 56 

self-employed 1 Includes firms with paid employees and firms with no paid employees.

Note: Detail may not add to total because of rounding. 

www.census.gov/econ/sbo Jun
Owner’s Service-Disabled

Veteran Status: 2007

% of % of 

all veteran 

owners of

respondent

firms

veteran women 

owners of

respondent

firms

ve

o

re

firms firms 

Total reporting1 100 100 

Service-disabled veteran 8 15 

Not a service-disabled veteran 92 85 

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail may not add to total because of rounding. 

www.census.gov/econ/sbo Jun
Accessing SBO Results Accessing SBO Results

• SBO Web site: SBO Web site: www census gov/econ/

www.census.gov/econ/

• For access to 

pp g re

packa

ged data 

produ

the ability to build custom tables, visit

American FactFinder (AFF), the Censu

Bureau’s online, self-service data accetool at www.factfinder.census.gov

www.census.gov/econ/sbo Jun
SBO Release Schedule

Data Release 

Preliminary Company Summary - Estimates of 

B i O hi b G d E h i i Business 

Ownership 

by 

Gen

der, 

E

t

h

nicity, 

Race, and Veteran Status 

July 

Hispanic-Owned Businesses September 2

Women-Owned Businesses December Black-Owned Businesses February American Indian- and Alaska NativeOwned Businesses March Native Hawaiian

- and Other Pacific Islander

-

A i

Native Hawaiian and Other Pacific Islander Owned Businesses

Apri

Asian-Owned Businesses April 

www.census.gov/econ/sbo June 
SBO Release Schedule

D t Rl 

(continued)

D

a

t

a

R

elease 

Veteran-Owned Businesses May 

Company Summary Company Summary June 

June

Characteristics of Businesses June Characteristics of Business Owners June 

www.census.gov/econ/sbo Jun
U.S. Department of Commerce 

Minority Business Development Agency

Characteristics of Minority Characteristics of Minority

-Ow

Businesses: Capital Usage and 

E A ii xport 

Acti

v

i

ty

David Hinson, National DirectorJune 14, 2011
MBEs Less Likely to Use Loans to Start/Acqui

Sources of Capital to Start/Acquire Business 

(P t f R d t Fi ) (Percent of Respon

dent Firms)

0.3

2.6

0.3

Business loan/investment from family/friends

Investment by venture capitalist(s)

0.6

2.8

0.7

11.1

7.2

Government-guaranteed business loan from a

bank or financial institution

Business loan from a bank or financial

institution

Business loan/investment from family/friends

NonminoMinority

11.4

0.7

10.4

0.6

5 4

Personal/business credit card(s)

Business loan from federal, state, or local

government

60 6

61.6

6.3

6.6

5.4

8

Personal/family savings

Personal/family assets other than savings

Personal/family home equity loan

60.6

0 10 20 30 40 50 60 70

Personal/family savings
L MBE L Lik l U L Larger MBEs 

Less Lik

e

ly to 

Use 

Loans 

to Start/Acquire Firm

Capital Source to Start/Acquire Firm Capital Source to Start/Acquire Firm

(Percent Respondent $1 Million Plus Firms)

0.9

1 Investment by venture capitalist(s)

22.6

6.5

1.9

25.6

6.1

Government-guaranteed business loan from a

Business loan from a bank or financial institution

Business loan/investment from family/friends

Non

10.7

2

2.3

7.4

1.5

1.9

Personal/business credit card(s)

Business loan from federal, state, or local

government

g

bank or financial institution

Min

10.4

9.8

10.8

7.7

Personal/family assets other than savings

Personal/family home equity loan

65.3

60.8

0 10 20 30 40 50 60 70

Personal/family savings
Large MBEs Need More Capital to Start/Acqu

Business

Capital Amount to Start/Acquire Firm 

(Percent of Respondent Firms - $1 Million Plus)

11.9

16.1

13.6

11.7 12.4 1214

1618

7.8

5.7

9.6

5.3

8.9

4.8

8.6 7.5

8.7

5.5

10.2

468

10

12

02

Less than

$5K

$5K to under

$10K

$10,000 to

$24,999

$25K to

under $50K

$50K to

under $100K

$100K to

under $250K

$250K to

under $1M

$1M or mo

Note: The difference between minority and nonminority firms requiring $1million or more in start-up capital does not appear to be s

s
MBE L Lik l H C i l A & U MBEs 

Less Lik

e

ly to 

Have 

Cap

ita

l

Access 

&

U

Loans for Business Expansion

Capital Source for Expansion/Capital Improvements 

(Percent of Respondent Firms)

2.6

11

1.4

B i fit d/ t

Did not have access to capital

1.4

0.2

7.7

9 4

1

0.1

11

B i l f b k fi i l i i i

Business loan/investment from family/friends

Investment by venture capitalist(s)

Business profits and/or assets

0.5

0.4

6

12 8

0.4

0.3

9.4

Business loan from federal, state, or local government

Government-guaranteed business loan from a bank 

Business loan from a bank or financial institution

4.3

5.2

12.6

30 2

4.4

4.7

12.8

Personal/family assets other than savings

Personal/family home equity loan

Personal/business credit card(s)

33.5

30.2

0 5 10 15 20 25 30 35 

Personal/family savings
Larger MBEs Less Likely to Have Capital 

Access, & Use Loans for Business Expansion

Capital Source for Expansion/Improvements 

(Percent of Respondent $1 Million Plus Firms) 

31 8

35

27.2 27.5

22.5 21.4

31.8

26.9

202530

9.1

13.7

1 5 0 8

6.3

10.8

1 2 3.1 5

1015

1.5 1 0.4 0.8 2 0.4 0.5

0

ersonal/family

savings

ersonal/family me equity loan onal/business edit card(s)

Governmentguaranteed

business loan

from a bank

usiness loan

m a bank or

cial institution

Business

n/investment

 family/friends

Investment by

venture

capitalist(s)

usiness profits and/or assets Did not have cess to capital

Pe

Pe

hom

Perso

cre

Bu

fro

finan

loa

fromBuaD

acc
MBEs More Likely to Export

Firms w/ 20 Percent or More of Sales in Exports 

(Percent of Respondent Firms) (Percent of Respondent Firms)

1.5

2.1

3.3

1 5

2

2.5

3

3.5

Minority N i it 1.1

0

0.5

1

1.5

All Firms All Firms w ith Employees

Nonminority 

Export Sales as a Percent of Total Sales 

(Percent of Respondent Firms)

0.8

0 8

1

0.7

0.6 0.6

0.4

0.2

0.5 0.5

0

0.20.40.6

0.8 

10% to 19% 20% to 49% 50% to 99% 100%
MBEs in Wholesale Trade Sector Lead Expor

Exporter Firms by Selected Industry Sectors 

(Percent of Respondent Firms)

32 35

14.1

8

14.2

9.5

2.6

5.9 9.9

5 

20.6

19.8

9.7

11.4

1.6 4.7

6.2

5

101520253035

05

anufac turing

W holes ale

trade

R etail trade

Inform ation

F inanc e &

ins uranc e

Profes s ional,

s c ientific , &

tec hnic al

s erv ic es

anagement of

m panies and

enterpris es

Arts,

ntertainm ent,

& rec reation

M

P

M a

c o

e

en

&

Minority Nonminority
MBEs Are Twice as Likely to Have Global Op

Established Operations Outside the U.S. 

(Percent of Firms)

3.1

1.9

2

2.5

3

3.5

1.4

1 0.9

0.5

0.7 1.2 1.2

0

0.5

1

1.5

Native Some other Asian Hispanic All Minority Publicly held Black or American All

Haw aiian &

Other Pacific

Islander

Some other

race

Asian Hispanic All Minority Publicly held Black or

African

American

American

Indian &

Alaska

Native

All

Nonminority
MBEs More Likely to Have Global Operation

Industry Sectors w/ Global Operations Industry Sectors w/ Global Operations

(Percent of Respondent Firms)

1.6

0 8

1.4 1.5 1.3

2.4

5.1

1.4

2 1 13456 Minorit

Nonmi

0.5 1 0.6

0.8 0.4 0.2 1.1

012

Construction

Manufacturing

Wholesale

trade

Retail trade

ansportation

and

warehousing

Information

Finance and

insurance

456

C

M

Tra

w

0.6

1.8

0.7 0.4 0.6 0.8

1.4 1.8

0.9 0.3 0.2 1

0123

state &

ta &

sing

ssional,

tific, &

nical

vices

ini. &

port &

Mgmt &

diation

vs

cational

rvices

 care &

cial

tance

ts,

nment,

eation

Real e

ren

leas

Profes

scien

tech

serv

Admi

Supp

Waste M

Remed

Srv

Educ

ser

Health

soc

assis

Ar

entertai

& recre
Contacting MBDA Public Affai

For more information, please contact

E il ma : publi ff i @ bd blic_affaris

@

mbda.

gov

Phone: 202.482.6272
Questions?

www.census.gov/econ/sbo Jun
Key Upcoming Press Event fro

US C B .

S. 

Census 

Bureau

• J 30 uneW bi 2009 C t B 

W

ebinar on 2009

Coun

ty 

Bus

Patterns Data

www.census.gov/econ/sbo Jun
Contact Information

• U.S. Census Bureau

Public Information Office Public Information OfficePhone: 301.763.3030www.census.gov

• Minority Business Development Agenc

P bli Aff i Offi P

ublic Aff

airs Office

Phone: 202.482.6272

www mbda gov www.mbda.gov

www.census.gov/econ/sbo Jun