Black-Owned Businesses: Revenue and Industry in 2011
Part 2 will discuss the regional distribution, employment size and years of operation of black-owned businesses.
The information is derived from thesurvey population of small businesses.
Thewas created because little or no current information is available on minority-owned and women-owned small businesses.
The latest government survey on these businesses was conducted in 2007. While that information is based on a census of all small businesses, it is very outdated.
Theis the first ever national quarterly survey of the outlook and hiring plans of minority, women and non-minority small-business owners.
The responses of business owners were broken down by blacks, Latinos, women and non-minorities. Future surveys will include Asian Americans.
The survey is based on 631 responses from randomly selected CEOs who operated businesses with 10 to 100 employees. The results have a margin of error of + or -5% for each race and gender group.
Minority business owners comprised 55.6% of respondents, women made up 38.7%; blacks accounted for 33.6% and Latinos made up 19.8%.
This report provides a national profile of black-owned small businesses with 10 to 100 employees. It is based on a randomly selected survey population of 2,374 businesses that are owned by blacks.
Businesses owned by African Americans increased from 308,260 to 1.9 million or by 523%.
The growth in the number of Asian-owned businesses was slightly greater than was the growth of African American-owned businesses; they increased from 241,806 to 1.6 million, or by 545%.
Latino-owned businesses grew fastest among all minority groups (except for Native Americans) – from 284,011 in 1982 to 2.3 million in 2007, or by 696%.
Minority-owned firms are growing rapidly and are an increasing share of all small businesses. Currently they make up 21% of the nation’s 27 million small businesses.
Survey: Industry Distribution
Based on thesurvey population of 2,374 black-owned businesses with 10 to 100 employees, the industry having the highest concentration of black businesses was professional and technical services (15.5%).
The industry with the second largest concentration was business services (13.7%), this was followed respectively by health, education and social services, 10.5%; agriculture, and landscape services (10.1%); transportation and related services (8.0%); construction services (7.8%).
The smallest industry concentration for black-owned firms was retail trades (3.3%) and food and entertainment (3.6%).
The average revenue of black-owned businesses was $2.2 million in 2011. The industry with the largest annual revenue was retail trades, $5.7 million, followed respectively by wholesale trades, ($3.6 million), and manufacturing ($3.5 million). The industry with the lowest annual revenue was business services, $926,305.
Note: The 17 page report entitled, Economic Outlook for Minorities, Women and Non-minority Businesses in 2012 is currently available. Copies are free of charge and available for download.