Minority-Owned Business Expansion, Contraction, Survival Rates Differ From
Non-Minority Business
New Report Details Minority Business Dynamics 1997-2001
Minority-owned businesses expand, contract, and survive at rates that differ
from non-minority owned business, according to a study (http://www.sba.gov/advo/research/rs251tot.pdf)
released by the Office of Advocacy of the U.S. Small Business Administration.
The report tracks the success of minority-owned employer establishments that
were in operation from 1997 to 2001.
“This report provides new insights into the dynamics of minority- owned
business establishments,” said Thomas M. Sullivan, Chief Counsel for Advocacy.
“These insights are important for policy-makers working to expand an ownership
society to all segments of our society.”
Released at The Institute for Entrepreneurship, Leadership, and Innovation at
the Howard University School of Business, findings of Dynamics of Minority-Owned
Employer Establishments, 1997-2001 include:
* During 1997-2001, 27.4 percent of non-minority owned establishments
expanded. At the same time, 34 percent of Hispanic-owned establishments
expanded, 32.1 percent of Asian and Pacific Islander-owned establishments
expanded, 27.8 percent of American Indian and Native Alaskan-owned
establishments expanded, and 25.7 percent of Black-owned establishments
expanded.
* The four-year survival rate for non-minority owned businesses
establishments was 72.6 percent. The survival rates for minority-owned
businesses were lower, including Asian and Pacific Islander-owned at 72.1
percent, Hispanic-owned at 68.6 percent, American Indian and Native Alaskan-
owned at 67 percent, and Black-owned at 61 percent.
* States with the highest survival rates for minority-owned businesses during
1997-2001 were Delaware for American Indian and Native Alaskan-owned
establishments (93.8 percent), Wyoming for Black-owned establishments (93.5
percent), South Carolina for Hispanic-owned establishments (88.6 percent), and
New Mexico for Asian and Pacific Islander-owned establishments (84.6 percent).
Special tabulations tracking a subset of the 1997 Survey of Minority-Owned
Businesses by the Census Bureau, with funding from the Office of Advocacy,
provided data for the report. While comprehensive, the dataset does not include
the two million new businesses started in 1997- 2001, or the jobs they created.
The Office of Advocacy, the “small business watchdog” of the
government, examines the role and status of small business in the economy and
independently represents the views of small business to federal agencies,
Congress, and the President. It is the source for small business statistics
presented in user-friendly formats and it funds research into small business
issues. For a copy of the report, visit
www.sba.gov/advo.
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