Minority Entrepreneur

Stats on Minority Business Owners

General Stats and Comparisons

Self-employment as a share of the labor group is 3.8 percent for African Americans; 6.4 percent American Indian, Eskimo or Aleut; and 10.1 percent Asian or Pacific Islander.

Of U.S., non-farm businesses, 6.8 percent are owned by Hispanic Americans, 4.8 percent by Asian Americans, 5.2 percent by African Americans and 0.9 percent by American Indians. In 2002, minorities owned 4.1 million firms that generated $694.1 billion in revenues and employed 4.8 million workers.

Of minority-owned businesses: 39.5 percent are Hispanic-owned, 30.0 percent are Asian-owned, 27.1 percent are African American-owned and 6.5 percent are American Indian-owned.

Of the 4,514,699 jobs in minority-owned businesses in 1997, 48.8 percent were in Asian-owned firms, 30.8 percent in Hispanic-owned firms, 15.9 percent in African American-owned firms and 6.6 percent in American Native-owned firms.

Minority-owned firms had about $96 billion in payroll in 1997.

The minority-owned business share of U.S. firms was 6.8 percent in 1982; it grew steadily to 9.3 percent in 1987; 12.5 percent in 1992; and 14.6 percent in 1997.

Asian-Owned Businesses

The number of Asian-owned businesses grew by 24 percent between 1997 and 2002. The 1.1 million Asian-owned businesses generated more than $326 billion in revenue, up 8 percent from 1997.

Black-Owned Businesses

Black-owned business are the fastest growing segment of new businesses, growing 45 percent between 1997-2002, with revenue growth 25 percent. The 1.2 million black-owned businesses in the United States employed more than 756,000 people and generate nearly $89 billion in business revenues. 

Almost 4 in 10 black-owned businesses (38 percent) were owned by women.

New York had the most black owned firms, followed by California, Florida, Georgia, and Texas.

Hispanic-Owned Businesses

Hispanic-owned businesses in the U.S. totaled 1.6 million firms in 2002, representing a 31 percent increase from 1997.

Hispanic owned businesses employed 1.5 million people and generated $222 billion in revenue in 2002. Just under 4 in 10 of these firms were owned by people of Mexican origin.

73 percent of Hispanic-owned businesses were in four states: New York, California, Texas and Florida.

In 2000, 10.7 percent or 28.1 million people in the United States spoke Spanish at home, and 49 percent of them spoke English less than "very well."

American Indian- and Alaska Native-Owned Businesses

In 2002, there were 201,387 American Indian- and Alaska Native-owned businesses with receipts of $26.9 billion in the United States.

Asian-and Pacific Islander (API)-owned businesses in the U.S. totaled about 913,000 in 1997, employed more than 2.2 million people and generated $306.9 billion in revenues.

Since 1997, the number of Native American-owned businesses has jumped by 84 percent to 197,300. 85 percent of these firms can be described as micro-enterprises.

5 Tips for Building Your Referral Business

1. Referrals always begin with providing your current customers with prompt, reliable, quality service. They’ll be happy to spread the word on your behalf—often without you having to ask.

2. Ask your current customers if they know of any colleagues who are looking for the kind of service you provide. Follow up with a call or letter to those businesses. Make sure you get your customer’s permission to cite them as a referral source.

3. If a customer compliments you on your work, ask them to put it in writing for use as a testimonial in your marketing materials. Again, make sure you have their permission to use their name for that purpose.

4. Always acknowledge a customer’s referral with a thank-you note or phone call. If you send a card, consider including a coupon to popular restaurant or discount on a future purchase.

5. Many retail and service businesses lend themselves well to formal referral incentive programs with cash, gifts, or discounts. Make sure these “rewards” fit in your budget, and that you have clear rules and guidelines (e.g., only one referral reward per customer during a defined period).

Resources for Minority Business Owners

8(a) Business Development Program
Previously known as SBA Minority Enterprise Development Program, the 8(a) Program -- named for Section 8(a) of the Small Business Act – is a business development program created to help small disadvantaged businesses compete in the market place. It is also designed to assist such companies in gaining access to federal and private procurement markets.

The focus of the program is to provide business development support, such as mentoring, procurement assistance, business counseling, training, financial assistance, surety bonding and other management and technical assistance. The goal, however, is to prepare small disadvantaged firms for procurement and other business opportunities.

ACCION USA
ACCION USA is a private, non-profit organization that offers small business loans of up to $25,000 and financial literacy education to small business owners in the United States. 

Asian Women In Business
Asian Women in Business (AWIB) is a not-for-profit membership organization founded in 1995 to help Asian women realize their entrepreneurial potential. AWIB helps women who need information, education and networking opportunities to start or expand their businesses.

Asian Enterprise
Promoted as the largest Asian American small business magazine in the nation, it aspires to be the voice for the growing number of independent Asian-Pacific American entrepreneurs in the United States.  The Web site provides helpful information on events, conferences, awards, news, and entrepreneurial kits for Asian-Pacific small business owners.

Black Enterprise
Black Enterprise advances itself as an expert on African American business and upscale consumer markets. The organization works to understand these markets, serve them and sell to them through its publication, information, products, services and corporate business partnerships.  Black Enterprise also maintains an online Franchise Center as a resource for aspiring entrepreneurs who are interested in buying their own business or franchise.

Black Women Enterprises
The mission of Black Women Enterprise is to identify and remove the barriers that impede the success of black women business owners promote equal access to capital, educate, advocate, reverse industry trends that foster business failure and serve as a clearing house for business information targeted towards black women entrepreneurs. The organization also provides workshops, technical assistance, business counseling, awards, conferences, and other special events.

Empower Me!
Empower Me! provides resources and information for professional, African American women as well as companies interested in initiatives that target black women.  Their Web-based Entrepreneur Center provides workshop and conference information, mentoring services, access to legal databases and a business directory.  Online courses are also provided through the organization’s Empower Me! Institute.

EZcertify.com
This Web site makes getting certification as an 8(a) firm or SDB (small disadvantaged business) easy. The application package and required attachments for both of these programs present a daunting challenge to many new entrepreneurs. To help potential applicants, EZCertify.com™ has taken a “TurboTax-like” approach to a cumbersome, time-consuming, often confusing process.
The Small Business Administration's 8(a) Program was created in 1974 to help minority and other disadvantaged businesses to grow through a program of federal contracting preferences and set-asides. Through the program, eligible firms can be awarded government contracts on a sole-source, non-competitive basis.

The SDB program enables small disadvantaged businesses to be eligible for special bidding benefits. SDB companies could receive a favorable "price evaluation adjustment" of up to 10 percent or a proposal evaluation credit of up to 20 percent if it is bidding as a prime contractor. The price adjustment means an SDB won't have to be the lowest bidder to win a contract award. The rules also provide a system of preferences for large businesses that use SDBs as subcontractors. The program is intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting.

Hispanic Association on Corporate Responsibility (HACR)
Hispanic Association on Corporate Responsibility (HACR) is one of the most influential advocacy organizations in the nation representing 14 national Hispanic organizations in the United States and Puerto Rico. Their mission is to advance the inclusion of Hispanics in Corporate America at a level commensurate with their economic contributions.  To that end, HACR focuses on four areas of corporate responsibility and community reciprocity: employment, procurement, philanthropy, and governance.

Hispanic Business
For more than 25 years, Hispanic Business magazine/HispanicBusiness.com, has been a source of information for and about affluent Hispanic professionals and entrepreneurs. This site also contains an entrepreneurial section.

HispanicOnline.com
This Web site provides the latest news, events and trends relevant to Hispanic professionals. This site contains a section on business and finance. HispanicOnline.com publishes Hispanic Magazine.  

Hispanic Business Women's Alliance
The Hispanic Business Women's Alliance is an on-line community of Hispanic women entrepreneurs, professionals, consultants, executives, inventors and investors located throughout North America, Latin America, the Caribbean, and Spain interested in doing business and collaborating with each other.

Hispanic SMB
Hispanic SMB brings you the most comprehensive collection of documents to help the Hispanic business owner with every aspect of running a business.

Indian Business & Professional Women
Indian Business & Professional Women is a non-profit support network for business and professional women that promotes education, leadership and self-development through seminars and workshops. Seminars are open to men and women of Indian and Non Indian origin.

Inner City 100
The Inner City 100 is a list of the 100 fastest-growing companies in America’s inner cities. The program is a partnership between the Initiative for a Competitive Inner City (ICIC) and Inc. Magazine to spotlight and support growing companies in urban areas and to highlight the importance of a healthy economy in developing healthy urban communities. ICIC is a national, not-for-profit, organization founded and led by Professor Michael Porter of the Harvard Business School. ICIC’s mission is to spark new thinking about the business potential of inner cities, thereby creating jobs and wealth for inner-city residents (www.icic.org). Inc. magazine is the leading publication for growing companies and entrepreneurs with a circulation of 1.5 million.

Latin Business Association (LBA)
Established in 1976, the primary purpose of the LBA is to promote the growth of Latino-owned businesses by fostering development opportunities, providing educational workshops and formulating effective advocacy programs.

Making IT
Making It—Minority Success Stories is a weekly, half-hour magazine-format television show that highlights the triumphs, challenges and contributions of minority business. Its mission is to promote economic empowerment. Each episode includes entrepreneurs' stories, secrets of success, experts, a calendar of events and more. This site contains resources for minority entrepreneurs, as well as inspirational stories of success.

MercadeoBrillante.com
Digital magazine dedicated to helping Hispanic entrepreneurs grow their businesses with cost effective marketing and sales strategies.

Minority Business Development Agency
The Minority Business Development Agency (MBDA) is part of the U.S. Department of Commerce. MBDA’s mission is to actively promote the growth and competitiveness of minority-owned businesses by providing access to public/private debt and equity financing, market opportunities, and management and business information; coordinating and leveraging public and private resources; and facilitating strategic alliances.

Minority Business Network
This site provides information on top minority-owned businesses and links to other organizations that support minority business.

Minority Business Enterprise Legal Defense and Education Fund (MBELDEF)
The fund promotes itself as the legal and educational shield for minority business.  It is a non-profit, public interest law firm with the goal of empowering minority-group firms by providing them with advocacy services, critical information they need as well as the umbrella under which to organize and leverage getting their fair share of business in the global marketplace.

Minority Business News
Minority Business News USA is an award-winning resource for information on minority business enterprise and diversity.

National Association of Asian American Professionals
NAAAP is a national, non-profit organization for professionals of Asian descent.  Their mission is provide professional development opportunities for their members while also raising Asian American awareness in the corporate world and ensuring that Asian Americans are included in diversity programs.

National Black Chamber of Commerce
The National Black Chamber of Commerce is dedicated to economically empowering and sustaining African American communities through entrepreneurship and capitalistic activity within the United States. This site provides resources and information on access to capital, advocacy, banking, e-commerce, world trade and more for black business owners.

National Center for American Indian Enterprise Development
The National Center for American Indian Enterprise Development has developed into a premier business consulting firm for Native Americans, having secured more than $75 million annually in procurements for its clients. In 1989, the all-Indian Board of Directors implemented a long-term strategic plan to expand its offering of economic development services to American Indians, Native Hawaiians, Alaskan Natives and tribal governments.

National Hispanic Business Association
The NHBA is dedicated to helping Hispanic undergraduate business students develop the real-world skills and relationships needed to launch successful professional careers.

National Minority Business Council (NMBC)
NMBC is a nonprofit organization that has been helping small, minority- and women-owned businesses succeed for over a quarter century. Founded in 1972, the organization is dedicated to providing business assistance, educational opportunities, seminars, purchasing exchanges, mentoring, business listings and related services to businesses.

National Minority Supplier Development Council
The National Minority Supplier Development Council works to provide increased procurement and business opportunities for minority businesses of all sizes. 

Native American Marketing and Development Corporation (NAMCOR)
NAMCOR provides marketing, business development and consultation services to companies owned by Alaska Native Corporations and American Indian Tribes. Located in the Washington D.C.-metro area, NAMCOR's primary area of expertise includes 8(a) federal contracting and development of strategic business relationships within the federal contractor community.

New America Alliance
New America Alliance (NAA) is a 501(c)(6) organization of American Latino business leaders committed to leading the process of Latino empowerment and wealth-building by expanding the forms of capital most crucial for economic advancement, including economic capital, political capital, human capital, and philanthropy

United States Hispanic Chamber of Commerce (USHCC)
The USHCC's primary purpose is to identify business opportunities for Hispanic-owned businesses. In doing so, the USHCC works in conjunction with affiliates around the country to maintain direct contact with major corporations and government agencies seeking qualified Hispanic suppliers from across the nation, and matching them with corporate and government buyers.

United States Pan Asian American Chamber of Commerce
USPAACC is a national, non-profit organization representing all Asian Americans and Asian American-related groups in business, sciences, the arts, sports, education, public and community services.  They promote, nurture and propel economic growth by opening doors of contract, and developing educational and professional opportunities for Asian Americans and their business partners in corporate America and government agencies. They welcome all people who believe in the power of diversity and inclusion for mutually beneficial economic gains.