U.S. minority-owned firms outpace growth of nonminority-owned firmsStaff writer ▼ | August 20, 2015
The U.S. Census Bureau released preliminary results from the 2012 Survey of Business Owners (SBO) and minority-owned businesses continue to grow significantly faster than nonminority-owned businesses.
Survey The U.S. Census Bureau:
Employment at minority-owned firms increased 33 percent to 7.7 million jobs, while gross receipts were up 53 percent from 2007. In contrast, the number of non-minority firms shrank by five percent between 2007 and 2012.
Employment at nonminority firms increased seven percent, or less than one-fourth as fast as in MBEs and receipts in nonminority firms increased 27 percent or half as fast as in MBEs,
Despite their impressive growth, MBEs still lag nonminority-owned firms in annual receipts. Minority-owned firms' receipts averaged $196,000 in 2012, compared to $650,000 in nonminority-owned firms.
The 8 million MBEs represented 29 percent of all U.S. businesses in 2012, up from 21 percent in 2007, but still low relative to the size of the growing minority population in the United States.
"We are encouraged by the entrepreneurial spirit demonstrated by the growth in number, revenue, and employment of minority firms," said Alejandra Y. Castillo, MBDA National Director.
"However, challenges remain to grow the size of minority firms, underscoring the work that MBDA will continue to champion - strengthening minority-owned firms' competitiveness and community impact."
The states of California, Texas, Florida, New York, and Georgia remain the highest numbers of minority-owned businesses. Combined, MBEs in these states make up 59 percent of the national total. ■