U S Census Bureau U

.

S. Census Bureau

Survey of Business Owne

Asian-Owned Businesses: 20

Census Bureau Economic Data Census Bureau Economic Data

April 28, 2011
Presenters

Host Neil Tillman

Public Information Office Public Information OfficeU.S. Census Bureau 

Survey g g, findings Thomas L. Mesenbourg, Jr. Deputy Director and Chief Operat

U.S. Census Bureau

Survey uses Survey uses David Hinson David Hinson National Director

Minority Business Development A

Outlook Michael Chan

PresidentAsian Inc.

Apr
Resources for Today’s New

C f on

ference

Come to www.census.

gov and click on th

at the top left corner to obtain –• T d ’ P P i t P t ti To

day’s 

Power

P

oin

t

Presen

t

ation

• News Release – and More!

• Link to Survey of Business Owners Ho

Page

• Link to Guidance on Accessing SBO D

Link to Guidance on Accessing SBO D

the American FactFinder

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

• Part of the Economic Census taken every 

Part of the Economic Census taken every

years for years ending in “2” and “7”

• The only comprehensive, regularly collec

data for businesses and business owners 

- Minority status Minority status

 Race  Ethnicit

y( p g y 

(His

panic ori

gin of an

y race

- Gender- Veteran status

www.census.gov/econ/sbo Ap
Business Ownership by Rac

Business Ownership by Rac

• Categories of ownership are based on th

Categories of ownership are based on th

race of the person or persons who owne51% or more of the stock or equity in the 

business in 2007.

• “Asian-Owned” is defined as any firm wit

Asian owners holding a 51% or larger sta

thb i e 

business.

www.census.gov/econ/sbo Ap
Business Ownership by 

D t il d G D

e

t

ail

e

d

Group

Asian-owned businesses are further classthe following detailed groups: the following detailed groups:

• Asian Indian-owned• Chinese-owned• Filipino-owned• Japanese

-o ned w

• Korean-owned

• Vietnamese

-owned

• Other Asian-owned [for example, Hmong, L

Thai, Pakistani, or Cambodian

]

www.census.gov/econ/sbo Ap
A Look at the 2007 Statisti

for Asian for Asian

-Owned Business

Owned Business

in the United States

www.census.gov/econ/sbo Ap
Asian-Owned Businesses Com

t All U S B i b to All

U

.

S. 

Bus

inesses 

by 

Employer Status: 2007

Asian-owned 

businesses

All U.S

busines

Firms

(number)

Sales and 

receipts

($ billions)

Firms 

(number)

All firms1 1,549,664 508 27,097,236 

Employer firms 397,484 455 5,739,890 Nonem

plo

yer 1 152 180 52 21 357 346 

p y firms 

1,152,180 52 21,357,346 

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 Ap
Asian-Owned Business Owner

Increased Faster than National 

2002 to 2007

Asian-owned

firms in 2007

% change for 

Asian-owned 

firms,

% c

(number) 2002 – 2007

20

All firms1 1,549,664 40 

Employer firms 397,484 24 

Nonemployerfirms 1,152,180 47 

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 Ap
Asian-Owned Business Reven

Increased Faster than National R

2002 to 2007

Asian-owned 

firms’ sales 

and receipts

% change for 

Asian-owned 

firms’ sales and

% c

all 

and receipts s

in 2007

($ billions)

firms sales and

receipts,

2002 –2007

s

r

20

All firms1 All firms 508 55 

Employer firms 455 56 

Nonemployer 52 48 

firms 

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 Ap
Asian-Owned Businesses and T

Proportion of All U.S. Firms

b

y py Em

plo

yer Status: 2002 to 2

% of U.S. businesses that are Asia

Year Ye

2007 20

All firms1 5.7 4

Employer firms Employer firms 6 9. 5 Nonemployer firms 5.4 4

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

www.census.gov/econ/sbo Ap
Growth in Business Ownership i

b D t il d A i G 2002 t by 

D

e

t

ail

e

d

A

s

ian 

Group: 2002

to 

Firms % 

in 2007 

(number) 

% change, 

2002 – 2007

Asian1 1,549,664 40 

Asian Indian 308,514 38 

Chinese 423,609 48 Filipino 163,217 30 

Japanese 108,361 25 Korean 192,465 22 Vietnamese 229,149 56 Oth A i Other 

A

sian 153 565 153,565 72 

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

Note: Detail does not add to total because of firms that are Asian-owned, but have nassigned to a detailed Asian group or have ownership by more than one detailed Asi

www.census.gov/econ/sbo Ap
Growth in Business Revenue in 

by Detailed Asian Group: 2002 to by Detailed Asian Group: 2002 to 

Sales and 

receipts

% 

in 2007

($ billions) 

% change, 

2002 – 2007

sa

r

Asian1 508 55 

Asian Indian 152 73 

Chinese 143 36 Fili

pino 20 43 

Japanese 40 29 Korean 79 67 Vietnamese 29 86 Other Asian 45 86 

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

Note: Detail does not add to total because of firms that are Asian-owned, but have n

to a detailed Asian group or have ownership by more than one detailed Asian group.

www.census.gov/econ/sbo Ap

to

a detailed Asian group or have ownership by more than one detailed Asian group.
Distribution of Firms by

R it ece

i

p

ts Si f Fi Size o

f Firm: 2007

% of Asian

-owned % 

Receipts size

% of Asian owned

firms U.S

Less than $50,000 61 

$50 000 t $99 999 $50,000

to $99,999 11 

$100,000 to $249,999 12 $250 000 to $499 999 $250,000 to $499,999

7

$500,000 to $999,999 5 $1,000,000 or more 5 

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

www.census.gov/econ/sbo Ap
Distribution of Employer Firm

b E l t Si f Fi by 

Emp

loymen

t Size o

f Firm: 2

Employment size % of Asian-owned % Employment size firms U.S

0 to 4 employees1 66 

5 to 9 employees 5 to

9 employees 18 

10 to 19 employees 9 20 to 49 em

p y lo

yees 5 

50 employees or more 2 

1 Includes firms with payroll at any time during 2007. Employment reflects the numemployees during the March 12 pay period employees during the March 12 pay period.

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

www.census.gov/econ/sbo Apr
Industries Accounting for the La

R it f A Rece

i

p

ts 

for 

A

s

ian-O d wne

d Fi 

Firms

Business sectors

Firms 

(number)

% of all 

Asian

firms

Sales and 

receipts 

($ billions

Total for all sectors 1,549,664 100 508 

Wholesale trade 60,464 4 131 

R t il t d R

etail tra

d

e 190 873 190,873 12 107 

Accommodation and food 

services 133,756 9 52 

H lth d i l Health care an

d social

assistance 164,246 11 45

Professional, scientific, and

technical services 213,669 14 43

www.census.gov/econ/sbo Apr
States With the Largest Percenta

Asian-Owned Firms: 2007 

Asian % of % ch

States and 

equivalent area

-

owned 

firms in 

2007

% of

firms in 

state that 

are Asian

-

% ch

for A

owne

2007 in s

(number)

are Asian

-

owned

in s

2002 

Hawaii 56,835 47 

C lif i C

alifornia 509 097 509,097 15 

New York 196,852 10 New Jerse

y 67,758 9 

Nevada 17,544 8 

www.census.gov/econ/sbo Apr
Large Counties With the High

Percentage of Asian-Owned Firm

Asian

- % c

Counties with a 

population of at

least 500,000

Asian

owned 

firms in 

2007

% of firms in 

county that 

are Asian-

% c

for 

owne

, in c

(number) owned 2002 

Honolulu, HI 41,887 57 

Santa Clara CA Santa Clara, CA 44 517 , 29 Queens, NY 68,606 29 

Alameda, CA 34,327 24 

San Francisco, CA 25,237 24 

www.census.gov/econ/sbo Ap
Larg g e Cities With the Highe

Percentage of Asian-Owned Firm

Asian- % c

Cities with a 

population of at

least 500,000

Asian

owned 

firms in 

2007

% of firms in 

city that

are Asian-

% c

for 

owne

, in 

(number) owned 2002 

San Jose, CA 22,089 31 

San Francisco CA San Francisco, CA 25 237 , 24 New York, NY 153,885 16 Los Angeles, CA 61,607 14 San Diego, CA 17,471 13 

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

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

www.census.gov/econ/s

• For access to 

pp g re

packa

ged data 

produc

the ability to build custom tables, visit

American FactFinder (AFF), the Census

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

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

Data Release 

Preliminary Company Summary - Estimates of 

Business Ownership by Gender Ethnicity Business Ownership by Gender, Ethnicity, J l 

Race, and Veteran Status 

J

uly 

Hispanic-Owned Businesses September Women-Owned Businesses DecembeBlack-Owned Businesses FebruarAmerican Indian- and Alaska NativeOwned Businesses March 

Native Hawaiian- and Other Pacific Islander- Apr

Owned Businesses Apr

Asian-Owned Businesses April 

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

Minority Business Development Agency

A is

ian-O d Fi wne

d Firms

Outpace Growth of 

Non-Minority-Owned Fi

David Hinson, National DirectorApril 28, 2011
Asian-Owned Firms Outpace Growth 

of NonMinority-Owned Firms

2002-2007

60% 55%

21%

28%

40%

30%40%50%60%

21%

0.03%

9%

16%

1%

0%

10%20%30%

Gross Receipts Employees Number of Firms Population

Asian Non-Minority
The Big Picture

Th A i b i i i i b d i f The Asian business community continues to grow in number and size at a faThe fast growing trend of Asian-owned businesses continued into the most rfive-year period outpacing once again the growth of non-minority-owned firmg p ( p g ), p y ( ) ross receipts (55 percent Asian growth), employment (28%) and number o(40%) between 2002 and 2007. Asian-owned businesses are also an engine of job creation, with paid employgrowing by 28 percent from over 2.2 million workers to more than 2.8 million workers, compared to less than a 1% growth for non workers, compared to less than a 1% growth for non-minority minority-owned firms. owned firms.Average employment per firm with employees was about 7 employees per Aowned business with employees in 2007.Th A i es an-owned fi id d t th i l A ll d firms paid good wages to their employees. Average payroll 

employee increased by 12 percent from about $25,000 in payroll per employ2002 to $28,000 in payroll per employee in 2007. The average payroll per emfor all minority-owned firms was about $28,000 in 2007 and $35,000 for nonfirms. 

The faster growing Asian population increased by 16% during this period, compar1% growth for non-minorities. 
Asian-Owned Firms with $1 Million 

in Sales in Sales

2007

95% 100%

72%

58%

42%

60%70%80%90%

28%

42%

20%30%40%50%

5%

0%

10%

20%

Number of Firms Gross Receipts Paid Employees

Asian Firms ($1 million and above) Asian Firms (Under $1 million)
Upside of $1 Million Plus Firm

Whil ll i b While smaller in num

ber, A i s an-ownedb i us nesses wi h i f $1 

it

h receipts o

f $1 m

more generated a much larger percentage of all Asian business’ revenpaid employment than firms with receipts under $1 million. 

Asian-owned firms owned firms with receipts of $1 million or more represented 5 p

with receipts of $1 million or more represented

5 p

all Asian firms but generated 72 percent of all Asian firms’ gross receippercent of all their paid employment. 

There were 78,144 Asian firms with gross receipts of $1 million or morTh fi t d bi d i t f th $367 billThese firms 

genera

te

d combine

d

gross receip

ts o

f more than $367 bill

employed over 1.6 million workers.

Average gross receipts of Asian firms generating sales of $1 million or grew by 6 percent from $4 5 million per firm in 2002 to $4 7 million in grew by

6 percent from $4.5 million per firm in 2002 to $4.7 million in 

Asian-owned firms in this size category also represented 55 percent of minority-owned businesses generating $1 million or more in receipts in 
Asian-Owned Firms Reach Entrepreneuri

Parity in Number and Employment Parity in Number and Employment

Gross Receipts (in $ billions) Paid Employment (in millions) Number of 

$508 $538 $509

$400$500$600 2.8 2.8

2 62.8

3 1.5

1.5

2

$100$200$300

2.22.42.6

0.5

1

$0

2007 Actual 2007 Parity 2009 Asian

Buying Power

2

2007 Actual 2007 Parity

0

2007 Actua
Entrepreneurial Parity

A MBDA i l i f i i At MBDA, we measure entrepreneurial parity o

f minority-owned firms

Asians-owned firms are the first minority group to reach entrepreneuin number of firms and employment by reaching the same proportionthese business measures as their share of the adult Asian population these business measures as their share of the adult Asian population 

4.9 percent. 

Asian-owned firms surpassed their parity levels in number of firms anemployment but closely trailed in gross receipts.If Asian-owned firms would have reached parity in gross receipts with share of the adult Asian population in 2007, these firms would have g$538 billion instead of $508 billion – a gap of about $30.1 billion. However, when we analyzed the data by ethnic group, Filipino-, Vietnand Japanese-owned businesses have yet to reach entrepreneurial pathree business measures with their share of their adult population. 
Average Gross Receipts 

Average Gross Receipts, 2007

Asian-owned 

businesses

Minority-owned 

businesses*

Non-minorit

busines

$328,000 $179,000 $490,

* Average gross receipts for minority and non-minority-owned businesses are based on Preliminarfrom the 2007 Survey of Business Owners released in July 2010. 
Room to Grow

Although average gross receipts for Asian-owned firms increased by 11 perfrom $296,002 in 2002 to $327,582 in 2007, this is still well below that of nminority-owned firms ($490,000). A i s an-owned fi ith l t d 26 t f ll A i d firms with employees represented 26 percent of all Asian-own

firms. This is a relatively large share. However their employment averaged employees per firm with employee, compared to an average of 12 employenon-minority-owned firms with employees. 

There are about 1.5 million businesses owned by Asian Americans across America. MBDA’s goal is to help grow those in emerging industries and witpotential for size and scale, as well as encourage job creation among these A th A i l ti i i th U S th f th A i As the Asian population increases in the U.S., the success of the Asian com

becomes critical for job creation.
The Future

MBDA is committed to making sure the growth and MBDA is committed to making sure the growth and

competitiveness of the minority business community coto be a national priority.

MBDA i ti th f d ti f th t ti MBDA is creating the foundation for the next generation 

million minority-owned firms capable of employing the gminority and U.S. population, expanding the national taand securing our position as a global leader.

In fiscal year 2010, MBDA assisted minority owned firmaccessing more than $3.9 billion in contracts and financand creating about 6,400 jobs. and creating about 6,400 jobs.To grow more minority-owned firms in size and capacityencourages minority businesses to consider growth by mand acq isition joint ent es and st ategic pa tne shipand acquisition, joint ventures and strategic partnership
Contacting MBDA Public Affai

For more information, please contact

E il ma : publi ff i @ bd blic_affairs

@

mbda.

gov

Phone: 202.482.6272
Empowering Diversity by 

Creating Opportunities

y Speaker: Michael Chan, 

President of ASIAN, Inc. 

y ASIAN, inc ( ) 

A non-profit technical assistance and research organization that work t t th th i ks t

o

strengthen the socioeconomic and institutional 

infrastructure of the Asian American Community and other 

mi iti i N th inorities i

n Northern

California.

y The core mission of ASIAN, Inc. 

is the empowerment of the Asian American Community to achieve social and economic equality by reducing dependencies, and creatin

g pg and expandin

g access to 

opportunities in the areas of business development, housing, and education.
Highlights & Initiatives

y ASIAN, Inc operates t

California Minority Bu

y For more than thirty-nine years, 

ASIAN, Inc. has been meetin

g

y

Center

y The Minority Busines

, g

the growing needs of low to moderate income (LMI) Asian Americans by leveraging public 

d i l d f d 

y

assists minority businNorthern California co

and pr

ivate len

der fun

ds to meet

the financing and technical asceneeds of emerging small businesses

y Focus on targeting mi

businesses that reinvecreation of jobs for low 

d i i

businesses

y Over 500 clients assisting in 

$115 million in procurement and 

moderate 

income min

populations, particulaexisting and emerging 

and high job creation 

$32 million in financing
The Data

y The Economic Census Data can be used to:

{ Indentify opportunities for entrepreneurs{ Target Marketing by socio-economic demographics, and specific ge{ Allow for market informed decisions for investments, and the creat

Minority Businesses

y Between 2002 & 2007 the number of Asian Owned Firms in th

Between 2002 & 2007 the number of Asian Owned Firms in thincreased by 40.4%{ 37.0% in California

y Northern California, including San Francisco and the Silicon V

st A i C it d d b i li t trong Asian Community and good business climate{ San Francisco-Oakland-Fremont MSA: Asian owned firms grew by 

2002 & 2007

{ San Jose-Sunnyvale-Santa Clara MSA: Asian owned firms grew by 4

2002 & 2007

y Effects of the recession on the business climate for Asian Amer

entrepreneurs around the following issues{ Access to Capital{ C ontract Procurement{ Access to New Markets
Questions?

www.census.gov/econ/sbo Apr
Live Online Discussion Live Online Discussion

• Further Q/A discussion of Asian business Further Q/A discussion of Asian business

findings 

• Ma

y 3 at 11 a.m. EDT

• Visit <www.facebook.com/uscensusburea

<www.ustream.tv/user/uscensusbureau>

• Submit questions via Facebook and Twitt

www.census.gov/econ/sbo Apr
Key Upcoming Press Events f

th U S C B the 

U

.

S. 

Census 

Bureau

• May 17 Webinar on 2007 Business Webinar on 2007 Business

Ownership Data for Veteran-Owned Businesses

• June 7 Webinar Summarizing 2007 

Business Ownership Data for All 

Ownership Groups (Company Ownership Groups (Company

Summary) 

• J 14 uneW bi 2007 Ch t i ti W

ebinar on 2007 Charac

teristics 

of Businesses and Characteristics of Business Owners

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

• U.S. Census Bureau

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

• Minority Business Development Agency

Public Affairs OfficePhone: 202.482.6272www.mbda.gov

• Asian Inc.

Ph 415 928 5910 Phone: 415.928.5910www.asianinc.org

www.census.gov/econ/sbo Apr