Minority Business Development Index: A Data Report on American Minority-Owned Business
61 Pages Posted: 10 May 2007
Date Written: May 7, 2007
This report attempts to assist policymakers by indicating the status and trend of minority business and providing information on characteristics of minority business owners. Tremendous progress has been made, the disparity between minorities and the American mainstream is still lingering. At the same time, we have found successful stories that can shed lights to improve the economic wellbeing of those left behind. In 1982, minorities merely owned 7 percent of U.S. firms. Twenty years later, minorities owned 18 percent in 2002. In five years between 1997 and 2002, Black-owned firms grew 45 percent and Hispanic-owned firms grew 31 percent. Yet, for every dollar of receipts that a White-owned firm made on average, minorities made much less. While minority population has been growing rapidly, the growth of business numbers, especially the increase in business receipts has not been synchronized. Terms such as poverty, food stamps, or social welfare, remain minority significant. Can American minorities catch up with the mainstream? Asian Americans have offered a very positive and promising tendency. The abundant human capital through education and possible strong social network associated with high rate of marriage and with family business financing created a special comparative advantage for Asian business. This resulted in a high business density that is likely to be positively correlated to people's economic wellbeing.
Keywords: Minority Business, Economic Wellbeing, Business Ownership, Business Density
JEL Classification: D3, I3, J1, M2
Suggested Citation: Suggested Citation