Black-Owned Businesses: Revenue and Industry in 2011
This is Part 1 of a two-part article on small businesses owned by African Americans. Part 1 examines the industry distribution and annual sales of black businesses in 2011.
Part 2 will discuss the regional distribution, employment size and years of operation of black-owned businesses.
The information is derived from the Gazelle Index survey population of small businesses.
The Gazelle Index was 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 While that information is based on a census of all small businesses, it is very outdated.
The Gazelle Index is 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.
Government Survey of Business Owners
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.
Gazelle Index Survey: Industry Distribution
Based on the Gazelle Index survey 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%).
Annual Revenue
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.
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