State of Minority Business Enterprises: An Overview of the 2002 Survey of Business Owners
As more individuals in the African-American, Latino, Asian/Pacific Islander, Native American and Alaska Native communities embrace entrepreneurship, we celebrate the contributions that over 4.1 million minority-owned businesses are making to the growth of the U.S. and global economies.
More minority business enterprises are being created at every level, from small/micro operations to rapidly growing technology companies. According to this report, State of Minority Business Enterprises: An Overview of the 2002 Survey of Business Owners, minority-owned firms generated over $668 billion in annual sales, and employed about 4.7 million people in 2002.
Businesses grossing over $500,000 annually in sales represented 75 percent of all minority annual gross receipts and 73 percent of all employees in the minority business community in 2002. These firms provide millions of people with steady jobs and create wealth in minority communities. The Minority Business Development Agency (MBDA) recognizes the critical importance of these firms to the economies of minority communities, the nation and the global markets, and has become an advocate for programs serving these companies.
Minorities frequently commence their careers by working for a minority-owned firm or starting their own business. The minority population is projected to continue to grow rapidly and will constitute an increasingly significant part of the overall U.S. population. Empowering minority entrepreneurs and accelerating their level of productivity is critical to strengthening U.S. competitiveness nationally and worldwide.
Although minority-owned firms are increasing in number at a faster pace than the rate of the minority population, the gap in annual gross receipts slightly widened when compared to the share of the minority population. With increased sources of financing for minority-owned businesses at all stages, strategic alliances, and access to the marketplace, many minority firms can expand and succeed.
This report analyzes the U.S. Census Bureau's economic survey to identify trends in minority business enterprises, which can be the basis for further research. Findings from this document provide a benchmark that we hope will influence the development of policies and programs to support the growth and expansion of minority business enterprises.
In partnership with corporate America, government agencies, non-profit organizations and educational institutions, MBDA will continue accelerating the competitiveness and growth of minority-owned businesses by supporting programs addressing their specific needs.
Ronald N. Langston
Minority Business Development Agency
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