According to the U.S. Census Bureau's 2007 Survey of Business Owners, the minority-owned firms in the United States were estimated to be 5.8 million in 2007. The report captured an increase in minority-owned firms up from 4.0 million in 2002. The percentage increase has increased by more than twice (17.9% to 45.5%). The receipts of the minority-owned firms indicated transaction of over $1.0 trillion (55% increase) while the business across the entire nation had an increase of 32.9%. In the same year, the U.S had 27.1 million businesses but more than one-fifth (21.35) were the minority-owned firms. Compared to 2002, the minority-owned firms had 766,533 waged employees, a percentage increase of 21.7. In addition, the firms with unpaid workforce totaled 5.0 million, a 50% increase from 2002(U.S. Census Bureau). The 2010 census report had illustrated an increasing diverse population, and this was reflected in the Survey of Business Owners in the amassed diversity of business ownership in the United States. The paper will candidly and comprehensively address the states with the highest minority owned business, the industries in which these businesses operate, and the collected revenues. In addition, the paper will discuss whether the minority-owned firms are successful by illustrating the presence of significant progress in the industry. The success and progress of the minority owned business will also be highlighted.
The Survey of Business Owners provides the statistics by highlighting the analyses and layouts by race, gender, ethnicity and experienced person status. Also, it provides separate data on institutions owned by minorities and non-minorities, men and women, and by Hispanics and Non-Hispanics. The data indicates that women have a higher ownership of the minority firms compared to their male counterparts. Evidently, the minority-owned firms are on the increase in the U.S as demonstrated as the statistics indicate.
In the United States, the states that have the highest minority-owned businesses are California, Texas and Florida. California State leads with the highest number that stands at 1.2 million businesses, more than 1/5th of all minority businesses in the whole country. Texas is the 2nd state with 723, 057 corporations owned by the minority, which is 12.6% of total minority-owned organizations (U.S. Census Bureau). Florida comes 3rd with 680, 068 minority-owned corporations (11.8%). Nonetheless, the counties with the highest number of minority-owned businesses include Los Angeles, Miami-Dade, Fla, Harris County, Texas, and Cook County.
What industries are these businesses mostly in? And what are the given revenues?
The minority-owned businesses in the United States are owned by African-Americans, Asians, Hispanics, and Native Americans. African-America owned businesses is on the upsurge. The Black- owned firms are over 1.2 million, and they generate revenue of $89 billion. The industries that are dominated by the Blacks compared to other races include the retail trade sector. Other industries owned by the African-American include healthcare and social assistance. 54% of revenue generated from the Blacks-owned businesses came from the automobile industry that dealt with “motor vehicle and parts dealers” business
Hispanics owned businesses are over 1.6 million, a 6.8% of entire nonfarm businesses in the U.S and they generate revenue of $222 billion. The industries are diversified as 29% operates in the construction, repair and maintenance, and personal services. In addition, the Hispanics also operated 35.9% of the Retail and Wholesale trade in the U.S.
The Asian-owned businesses total 1.1 million in non-farm businesses, and they generate revenue of $326 billion. The businesses represent a 4.8% in ownership. The Asians are vibrant in the Wholesale trade than other ventures. Furthermore, they also participate in retail trade services.
Nonetheless, the women are also in the minority groups, and they own over 6.5 million firms. The business revenue for their firms is $940.8 billion. The women-owned firms account for over 28.2% of all non-farm businesses. The most common industries for women are healthcare and social assistance as they represent 32% ownership (U.S. Census Bureau). Women also own 43.7% of businesses that specializes in personal services, repair, and maintenance. Nonetheless, women also play a major role in wholesale and retail trade as the ownership accounts for 38.3%.
Are they generally successful?
In the recent past, Statistics indicates a positive growth in the minority-owned businesses in the United States. The elements attributed to this growth include the affirmative action programs and universal economic trends. These businesses have also been successful due to massive community support, increased levels of education, increased networking, improved access to capital, efforts to revitalize inner cities, and business experience.
The minority groups are willing to promote the investments owned by their fellow counterparts. The entrepreneurs in these communities ensure that they start ventures that meet the needs to the community. As a result, the businesses record high levels of success, and this provides enough capital to expand the businesses. Also, the presence of community banks has promoted investments in the minority groups to a large extent.
The minority groups interact with individuals from all ethnic races so that they can learn the new ideas in business. This has resulted in the growth of many organizations that supports each other in the market. Entrepreneurs are also utilizing the business practices reflected by already established firms as a guide. Networking has helped the business community to solve the existing problems, implement solutions and take advantage of the existing opportunities in the market (Robb, Alicia, and Fairlie 4)
There are federal set-aside programs that have boosted the state of businesses in the minority groups. The presence of local, states and federal agencies has always assisted the minority groups with necessary assistance, and this motivates them to focus on expanding their business. In the end, the established firms succeed because of the assistance from the programs and agencies.
Most business owners from the minority groups establish their investments in the urban areas. The large cities are experiencing encouraging signs of rebirth, and this promotes the growth of opportunities. In additional, the federal agencies are promoting businesses in upcoming towns with an aim of declining the rural-urban migration ("Minority-Owned Businesses - Advantage, Percentage, Type, Growth of Minority-owned Enterprises)
Higher levels of education and business experience
The institutions of higher learning have realized the increasing number in the enrollment of minority groups within the society. The minority groups are also well educated and with the required skills in the business world. Also, unlike the perceptions of others, the minorities have turned out to be stronger, well financed and prepared to handle even the big businesses.
The minority-owned businesses are benefiting from the current economic trends. The belated recognition given to minority groups has motivated the groups to start small and big businesses. The U.S government realized that the Blacks, Arabs, Hispanics, Asians, and other minority groups have the potential to empower the economic growth in the country. Therefore, the government has established alternative financial sources to assist the minority groups towards the investments. For instance, The Small Business Administration (SBA) agency has increased the amount of loans given to members of minority groups to boost their investments ("Minority-Owned Businesses - Advantage, Percentage, Type, Growth of Minority-owned Enterprises)
Expansion into Emerging Industries
Since time immemorial, people from minority groups had a tendency to concentrate on small businesses like dry cleaners, restaurants, grocery stores, beauty parlors, amongst others. The entrepreneurs from minority groups have increased to a large extent. Notably, the minority groups are also investing in big firms contrary to the norms. They have developed the urge to invest in manufacturing and high-technology industries, and this had contributed to huge success.
Have they made significant progress in their industry?
In my opinion, the minority-owned firms have made significant progress in the industry. For instance, the 2007 U.S. Census Bureau Survey of Business Owners indicated that the businesses had grown by more than 45.5% in the last five years. The revenue collected from the minority-owned firms increased and promoted the economic growth in the United States. Moreover, the number of employees and their salaries increased and this proves a positive trend in the market. The financial sources also increased the loans given to minority members because their investments proved a success to the American economy. The number of women owning firms also increased, and this empowered them. Therefore, the progress reflected in the minority-owned firms has been a success because of the positive progress associated with the firms.
"Minority-Owned Businesses - Advantage, Percentage, Type, Growth of Minority-owned Enterprises." Reference For Business - Encyclopedia of Small Business, Business Biographies, Business Plans, and Encyclopedia of American Industries. 2015. Web. 27 Apr. 2015.
Robb, Alicia M., and Robert W. Fairlie. "Access to financial capital among US businesses: The case of African American firms." The Annals of the American Academy of Political and Social Science 613.1 (2007): 47-72.
U.S. Census Bureau. "Census Bureau Reports Number of Minority-Owned Firms Increased at More Than Double the Rate of All U.S. Businesses From 2002 to 2007 - Business Ownership - Newsroom - U.S. Census Bureau." Census.gov. N.p., 7 June 2011. Web. 27 Apr. 2015. <https://www.census.gov/newsroom/releases/archives/business_ownership/cb11-103.html>.