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Did you know that in the United States, minority owned businesses account for almost â…•  of U.S. employer businesses according to the 2020 Annual Business Survey (ABS)?

According to a report released by Thomson Reuters, minority-owned businesses are thriving and continue to grow at a faster rate than non-minority businesses.

This is a pretty impressive statistic.

Minority owned businesses are a vital part of the economy, and they play a big role in creating jobs and stimulating growth. 

Keep reading to learn more about minority owned business statistics and the inspiring people behind them!

Editor Choice: Minority Owned Business Statistics

  • There are approximately 9.3 million minority-owned businesses. (SBA, US Census Bureau)
  • According to the 2020 Annual Business Survey (ABS), which covers reference year 2019, approximately 18.7% (1.1 million) of U.S. employer businesses were minority-owned. (Census.gov)
  • 99.9% of minority-owned businesses with employees are small businesses (SBA)
  • 8.7 Million Workers Employed by minority owned businesses. (SBA)
  • There are 8.2 million minority-owned, non-employer businesses (U.S. Census Bureau)
  • On average, a minority-owned firm had $1.2 million in annual sales and employed 8 workers.(SBA)
  • Minority owned business bring  $1.3 trillion in total annual receipts (SBA)

1. In the last decade, minority-owned businesses created 4.7 million jobs and generated more than 50% of all new businesses created in the past 2 years in the United States.

In the last decade, minority-owned businesses created 4.7 million jobs

The evidence is clear: minority business owners are making a positive impact in the US economy and are responsible for more than half of all new businesses created, driving our country’s job market. 

These entrepreneurs are building wealth and strengthening communities. Yet despite their gains, minority businesses continue to face unique challenges from getting started to gaining market share across the country.

(Senate SBC)

2. Minority owned businesses account for almost ⅕  of U.S. employer businesses

Minority owned businesses account for almost ⅕  of U.S. employer businesses

Despite the progress that has been made towards diversity in business ownership, there’s still more work to be done. Still, with the right planning and strategy, minority businesses can have a concrete impact on the economy. 

Although these businesses may face additional hurdles, with hard work and dedication they will continue to be some of the fastest growing small businesses around.

(Census.gov)

3. 99.9% of minority-owned businesses with employees are small businesses

of minority-owned businesses with employees are small businesses

Minority-owned businesses have grown in recent years, and it’s clear that the economic environment has not harmed this revolutionary and burgeoning business form. 

Minority-owned businesses have the potential to greatly impact our society as they grow in number and spread out across the globe.

(SBA )

4.8.7 Million Workers Employed by minority owned businesses.

Million Workers Employed by minority owned businesses

As of 2019, 8.7 million workers were employed by minority owned businesses. Minority owned businesses are a growing segment in the United States economy. Millions of citizens are employed by these thriving businesses. 

The US Department of Commerce’s Minority Business Development Agency (MBDA) reports that minority-owned businesses have high job-creation rates. 

Most are small businesses with 20 or fewer employees, but some employ as many as 100. The amount and rate of job creation can be attributed to the number and diversity of businesses this segment represents.

(SBA)

5.There are 8.2 million minority-owned, non-employer businesses 

million minority-owned, non-employer businesses 

It’s clear that minority-owned businesses in the US are a rising force in the business world. With their share of total receipts jumping from $907.0 billion in 1997 to $1.3 trillion in 2019, there is no denying that minority-owned businesses are playing a more visible role in the business world than ever before.

As you can see, there are a lot of minority-owned businesses in the United States, and they make up a substantial portion of the country’s enterprises. The growth potential for these businesses is tremendous.

(U.S. Census Bureau)

6.On average, a minority-owned firm had $1.2 million in annual sales and employed 8 workers.

On average, a minority-owned firm had $1.2 million in annual sales and employed 8 workers.

Minority-owned firms are an important part of the US economy and their progress is indicative of the larger US business community. While the Asian and Hispanic American firms have seen higher levels of growth, African American firms have struggled to keep up. 

With more government funding, mentoring programs, and targeted outreach, this sector could see significant growth for years to come.

(SBA)

7.In 2019, there were an estimated 581,200 Asian-owned businesses. (Census)

It’s clear that Asian-owned businesses are an amazing asset to the U.S. economy, especially considering their immense popularity. They’re already worth more than $500 billion, and we can expect that to increase as rising generations of Asian Americans continue to create their own enterprises; businesses that match their interests and values.

Asian-owned businesses financially outperform all other ethnic groups in the United States. These businesses not only tend to have higher numbers of employees, but they also tend to hire more people from within their own communities.

(Census )

8.There were 134,567 Black- or African American-owned businesses in the United States. (Census)

Black-owned businesses continue to play an important role in the U.S. economy, and the number of businesses owned by African Americans is growing each year. Businesses are vital to the strength of our communities, and speaking with small businesses across the state can help policymakers better understand what they need to succeed.

( Census)

9.In 2019, Hispanic-owned businesses made up about 346,836 of all businesses.

Hispanic-owned businesses are increasing in popularity and influence, and the numbers show that. The number of Hispanic-owned businesses has increased considerably over the past few years.

( )

10. Minority owned business bring  $1.3 trillion in total annual receipts 

There are a vast amount of diverse entrepreneurs within the United States and they are contributing to the nation’s economy by bringing in an enormous amount of revenue. 

These firms tend to offer goods and services that fight for specific consumers similar to their demographic makeup. 

If you are a minority business owner or you own a business that caters towards a minority, then you can take advantage of this trend and advertise more effectively.

(SBA)

11.There are approximately 9.3 million minority-owned businesses

It’s undeniable that minority-owned businesses play a critical role in the U.S. economy. With so many of these businesses being home-based and so many others serving minority communities, it’s also clear that these enterprises will continue to be a mainstay for years to come. 

All of which serves as an inspiring reminder that, no matter your particular background or circumstances, it’s never too late to start reaching for your dreams.

(SBA, US Census Bureau)

12.Minority-owned businesses account for more than $280 billion in payroll each year.

In the last few decades, minority-owned businesses have grown to become a considerable economic force in the United States. 

While they are still far behind in terms of their total share of the economy, their growth makes them worthy of attention from both consumers and companies looking to find new ways to reach new markets. 

Using these resources as a starting point, you can begin researching this growing segment of American business.

(SBA)

13.Asian-owned businesses had the highest receipts among minority groups, with total sales of $863.3 billion.

We see that Asian-owned businesses seem to be the most successful among minorities, with the highest receipts of $863.3 billion. 

The black-owned business had the lowest total sales at $164.75 billion. Hispanic-owned businesses had an accumulated total of $463.8 billion in gross receipts and they were the second highest minority group regarding money earned.

(SBA)

14.The U.S. Census Bureau’s Survey of Business Owners shows that 2.5 million, or 82 percent of minority-owned businesses in the U.S., are sole proprietorships.

The biggest takeaway from this stat is that the majority of minority-owned businesses are sole proprietorships. 

Sole proprietorships are flexible and require little overhead, so they’re a great way for minorities to get started. And since 82% of them fall under this category, it’s clear that it’s working out well for many minority entrepreneurs. 

It doesn’t mean that all would-be minority entrepreneurs should go this route, but it might speak to the wider issue of access to startup capital. Do the 2.5 million minority-owned businesses in America represent the diversity we want in our country? 

I don’t think anyone wants to just be counted—we want to contribute to the growth of our economy and community too.

( U.S. Census Bureau)

Final Thought

There are a lot of exciting statistics that we could share with you about minority owned businesses. 

But perhaps the most inspiring thing about them is their sheer numbers and the impact they’re having on the economy. 

Minority-owned businesses employ 1 out of 10 Americans, and in total, they generate over $1.3 trillion in sales every year. 

That’s a LOT of money being spent and created by minority-owned businesses; it just goes to show that these businesses aren’t just another statistic—they’re helping to create jobs for a diverse pool of Americans, and that’s an incredible thing!

It’s encouraging to see that minority owned businesses are thriving. But that doesn’t mean there isn’t room for improvement. 

As the economy continues to recover from the devastation of the pandemic, more and more people will be able to start their own businesses—and they need access to financing and other support services that can help them make their dreams a reality.

FAQs

Source 

Census

Senate SBC

SBA

U.S. Census Bureau

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