New Report Reveals Blacks And Hispanics Entering Market At Fast Pace

OBSERVER STAFF REPORT

WASHINGTON - Minorities now own nearly 15 percent of American businesses. And 99 percent of these firms are small businesses. These findings are detailed in "Minorities in Business, 2001," a report issued by the Office of Advocacy of the U.S. Small Businesses Administration (SBA).

"Clearly minorities have moved into the mainstream of American business and these numbers prove it," said Tom Sullivan, Chief Counsel for Advocacy.

"Minority ownership of business has more than doubled in the last two decades, and the positive results of this surge are being felt at all levels of our society," Sullivan added.

"Minorities in Business, 2001" reviews the most recently available statistical information on minority-owned firms, their composition, growth and turnover.

It also examines the demographic characteristics of minority-owned business owners compared with those of the population as a whole.

The review indicates that while minority-owned businesses are vital to the success of the U.S. economy, significant issues continue to impede the growth of these businesses.

Some of the highlights of the report include the following:

• In 1997, minorities owned 14.6 percent of all U.S. businesses, or more than 3 million firms. These firms had more than $591 billion in revenues, created more than 4.5 million jobs, and produced about $96 billion in annual payroll.
  
  
• Of the total minority-owned businesses, 39.5 percent were Hispanic-owned, 30.0 percent Asian-owned, 27.1 percent Black-owned, and 6.5 percent American Indian-owned (numbers do not add to 100 percent since Hispanics can be of any race).
  
  
• In 2000, Hispanics accounted for about 12.5 percent of the population but owned only 5.8 percent of US firms in 1997 (latest data). Blacks constituted 12.3 percent of the population but owned only 4.0 percent of firms; Asians were 3.6 percent of the population and owned 4.4 percent of firms; and American Indians composed 0.9 percent of the population while opening 0.9 percent of the firms.
  
  
• Of new businesses with employees in 1992, 50.4 percent of Asian/Other-owned firms survived until at least 1996, compared with 48.7 percent of White non-Hispanic-owned firms, 44.9 percent of White Hispanic-owned businesses, and 34.7 percent of Black-owned firms.
  

More information can be found on the Office of Advocacy Web site, www.sba.gov/advo.
Click here for the the full "Minorities in Business, 2001" report.