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Tuesday, January 28, 2014

The Number of Black Businesses is on the Rise -- More Than 2 Million and Counting

Black-Owned Business

The makeup of business owners in America is changing. As minority populations increase, so do the number of businesses that are owned by minorities. One organization that has been tracking this change is the U.S. Small Business Administration (SBA). These changes are important to the government agency responsible for supporting small business ownership across America.

According to the SBA Office of Advocacy, minority business ownership increased from 11.5 percent in 2007 to 14.6 percent in 2012. This includes African-Americans, Asians, Hispanics and other non-white business owners. The largest percent of minority-owned businesses are African-Americans, representing 49.9 percent or nearly half of all minority owners in 2012. In fact, there are more than 2 million Black-owned Businesses. Asians made up just 29.6 percent, and Hispanics numbered just 10.3 percent in 2012. But all groups showed increases over previous years.

Other shifts noted by the SBA regarding small business ownership include:
  • The age of small business owners is shifting toward 50 years old and older. This group increased from 46 percent to 50.9 percent, while the 35-49 age group actually decreased.

  • There is an increase in the number of small business owners with college education. The largest percent have either college degrees or some college; only 28.2 percent had a high school diploma.

  • Most small business owners also own their own homes. About 78 percent are home owners.
The change indicates the determination of small business owners to succeed as entrepreneurs, making their contribution to the growth of the economy in the U.S.

To see the full SBA report, visit:
www.sba.gov/sites/default/files/Issue%20Brief%202,%20Business%20Owner%20Demographics.pdf



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