A new report shows that there are encouraging signs for minority business owners. In fact, minority-owned businesses are outpacing the results of non-minority-owned businesses in several categories. But, as the numbers show, there are still significant gaps between the two.
This comes from the U.S. Census Bureau’s preliminary results of its 2012 Survey of Business Owners. According to the bureau, 1.75 million businesses were surveyed about “characteristics of the businesses and their owners.” Here’s a look at some of the notable statistics, as cited by the U.S. Department of Commerce’s Minority Business Development Agency.
First, the positive:
- Minority-owned businesses increased from 5.8 million to 8.0 million between 2007 and 2012. That’s a 39 percent boost, and it is more than three times faster than minority population growth, the MBDA says.
- Minority-owned businesses increased employment to 7.7 million jobs. That’s a 33 percent increase, which is more than four times as large as non-minority-owned businesses.
- Minority-owned businesses increased gross receipts by 53 percent from 2007 to 2012. That’s almost twice the amount by non-minority-owned businesses.
- Minority-owned businesses averaged receipt amounts of $196,000 in 2012, while non-minority-owned businesses averaged $650,000.
- There are 8 million minority-owned businesses, but that makes up just 29 percent of all businesses in the United States. That number has increased from 21 percent in 2007. As the MBDA says, it is “still low relative to the size of the growing minority population in the United States.”
The MBDA’s national director, Alejandra Y. Castillo, acknowledged the progress made, and noted that there is more work to be done to boost minority businesses.
“We are encouraged by the entrepreneurial spirit demonstrated by the growth in number, revenue and employment of minority firms,” Castillo said. “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.”
As part of the MBDA’s continuing efforts, it announced a partnership earlier this year with CEO Connection to help minority business owners with resources. CEO Connection, according to the press release, “supports the success of mid-market CEOs by enabling them to build mutually beneficial relationships with peers and functional experts, and connecting CEOs to information and resources to which they may not otherwise have access.”
“… We are providing an opportunity for minority CEOs to operate on an even playing field in accessing opportunities to lead to their businesses’ growth and sustainability,” Castillo said. “This is critical as we experience the demographic shift taking place in America, and the increasing importance of diverse CEOs to our nation’s economy.”
Kenneth Beck, the CEO of CEO Connection, called the partnership “the quintessential example of the benefits of private businesses working with government to support the greater good. We are thrilled that MBDA and the entire Department of Commerce recognize the need for resources to support mid-market companies and we are honored to help.”