U.S. Census BureauSurvey of Business Owners

Preliminary Estimates of Business Ownership by Gender, Ethnicity, Race, and Veteran Status: 2007

Census Bureau Economic DataReleased on July 13, 2010

2 July 13, 2010

Presenters

Host Stanley J. RolarkChief, Public Information

OfficeU.S. Census Bureau

Survey findings Thomas L. Mesenbourg, Jr.Deputy Director and Chief

Operating OfficerU.S. Census Bureau

Uses David HinsonNational DirectorMinority Business

Development Agency

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• Part of the Economic Census required by law to be taken every 5 years for years ending in “2” and “7”

• The only comprehensive, regularly collected data for businesses and business owners by - Gender - Minority status- Race- Ethnicity (Hispanic origin of any race) - Veteran status

About the Survey

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Which Businesses Are Included

• Includes all nonfarm firms operating during the Economic Census year with receipts of $1,000 or more that filed tax forms as:

- Individual proprietorships- Partnerships- Any type of corporation

• Firms classified by kind of business using the North American Industry Classification System (NAICS)

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Business Ownership• Categories of ownership are based on the

characteristics of individuals who own 51% or more of stock or equity in the business.

• “Minority-owned” defined as any firm with Black or African American, American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, or Hispanic owners holding a 51% or larger stake in the business.

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Categories of Business Ownership• Race

- Minority-owned, Equally minority-/nonminority-owned, Nonminority-owned

- White- Black - American Indian and Alaska Native (AIAN)- Asian- Native Hawaiian and Other Pacific Islander

(NHPI) - Some other race

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Categories of Business Ownership (cont.)

• Ethnicity - Hispanic, Equally Hispanic/non-Hispanic,

Non-Hispanic

• Gender- Women-owned, Men-owned, Equally men-/ women-owned

• Veteran Status - Veteran-owned, Equally veteran-/nonveteran-

owned, Nonveteran-owned

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A Look at the2007 SBO Preliminary Estimates

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Overview

Firmsin 2007

(number)

Sales and receipts in 2007

($ billions)

All U.S. firms1 27,110,362 30,181

Employer firms 5,752,975 29,209

Nonemployer firms 21,357,387 973

1 Includes firms with paid employees and firms with no paid employees.

Note: Detail does not add to total because of rounding.

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Growth in Minority BusinessOwnership: 2002 to 2007

Firmsin 2007

(number)

Sales and receipts in 2007

($ billions)

Firms (% change, 2002 - 2007)

Sales and receipts

(% change, 2002 - 2007)

All U.S. firms 27,110,362 30,181 18 34

Minority 5,762,940 1,029 46 56

Black 1,921,907 137 60 55

Asian 1,552,505 514 41 57

NHPI 38,881 7 34 63

AIAN 237,386 34 18 28

Hispanic 2,259,857 345 44 56

Note: Detail may not add to total because a Hispanic firm may be of any race. Moreover, each owner had the option of selecting more than one race and therefore is included with each race selected.

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Growth in Business Ownership byGender and Veteran Status: 2002 to 2007

Firms in 2007

(number)

Sales and receipts in

2007($ billions)

Firms(% change, 2002 - 2007)

Sales and receipts

(% change,2002 - 2007)

All U.S. firms 27,110,362 30,181 18 34

Gender

Women (W) 7,793,425 1,193 20 27

Men (M) 13,910,634 8,513 6 21

Equal (W,M) 4,602,312 1,282 71 75

Veteran Status

Veteran 2,449,477 1,233 x xNote: Firms by gender do not add to total because the number of publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status has not been provided in this table. The 2007 SBO provides the first-ever estimates for all veteran-owned businesses in the United States.

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States With the Largest Percentage Growth in Minority-Owned Firms: 2002 to 2007

State Firms in 2007 % change, 2002 - 2007

Georgia 263,439 91

Nevada 45,588 87

Alabama 70,556 85

Note: Firms with more than one domestic establishment are counted in each geographic area and industry in which they operate, but only once in the U.S. and state totals for all sectors.

States With the Largest Number of Minority-Owned Firms: 2007

State Firms in 2007 % of all State firms

California 1,221,040 36

Texas 723,162 33

Florida 680,263 34

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Industries Accounting for theLargest Receipts for

Minority-Owned Firms: 2007

Business sectorSales and receipts

($ billions)Wholesale trade 217

Retail trade 185

Construction 96Health care & social assistance 85Professional, scientific, & technical services 82

Note: Firms with more than one domestic establishment are counted in each geographic area and industry in which they operate, but only once in the U.S. and state totals for all sectors.

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Accessing SBO Results• Released on a flow basis

- SBO Web site: www.census.gov/econ/sbo

- For access to prepackaged data products and the ability to build custom tables, visit American FactFinder (AFF), the Census Bureau’s online, self-service data access tool at www.factfinder.census.gov

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Data Release date

Preliminary Company Summary -Estimates of Business Ownership by Gender, Ethnicity, Race, and Veteran Status (PRELIM)

July 13, 2010

Series of nine releases with additionalinformation by geographic sublevels, detailed industry, size of firm, Hispanic subgroups, and detailed Asian and NHPI groups, plus business and owner characteristics data

September 2010 through

June 2011

SBO Release Schedule

Number of Minority-Owned Businesses Grows but Economic Parity Remains Elusive

U.S. Department of Commerce Minority Business Development Agency

David Hinson, National Director

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The Big PictureMBDA is encouraged that the minority business community has grown at a faster rate than the minority population and all U.S. firms, yet economic parity remains elusive for the minority business community.

The minority population age 18 and older grew by 13.7 percent between 2002 and 2007, and all U.S firms increased in number by 18 percent, minority firms once again outpaced this growth by increasing in number of firms by 46 percent over the same period.

Over a decade, minority-owned firms nearly doubled from 3 million in 1997 to 5.8 million in 2007.

Success in the minority business community leads to job creation, an expanded tax base, community benefits and global competitiveness.

Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.7 million in 2002.

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Growth of Minority-Owned FirmsGrowth Rates between 2002 - 2007

18.0%13.7%

45.6%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%

Number of Minority-OwnedFirms

Number of All U.S. Firms Minority Population

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The Downside While we have increasingly more minority-owned firms in number, they are still smaller in size, scale and capacity than non-minority-owned firms.

In 2007, average gross receipts for minority-owned firms increased to $179,000 from $167,000 in 2002 but still remain lower than non-minority-owned firms which had average gross receipts of $490,000.

As the minority population explodes in the U.S., the prosperity of the minority business community becomes more critical.

Without viable minority businesses, economic dependency and reliance on government services will skyrocket, unemployment will jump, innovation will stall and we risk our place as leaders in the broader global business community.

This data precedes the economic downturn of 2008 which may have impacted minority-owned firms disproportionately. MBDA supports efforts to increasing access to capital for minority-owned firms to help avoid bankruptcies and failure.

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Average Gross Receipts, 2007

Minority Firms Non-Minority Firms

$179,000 $490,000

Minority-Owned Firms Gross Receipts

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The FutureMBDA is committed to making sure the growth and competitiveness of the minority business community continues to be a national priority.

MBDA is creating the foundation for the next generation of $100 million minority-owned firms capable of employing the growing minority population, expanding our tax base and securing our position as a global leader.

Last year, MBDA assisted minority owned firms in accessing nearly $3 billion in contracts and financings, creating more than 3,000 jobs.

To grow more minority-owned firms to size and capacity, MBDA encourages minority businesses to consider growth by mergers and acquisition, joint ventures and strategic partnerships.

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Strategic Priorities:

Access to Capital – MBDA will develop global financing solutions for minority business enterprises such as:

Developing unique public-private partnerships to create funding vehicles for MBEs Expanding the number of financing optionsIncreasing surety bonding opportunities

Access to Contracts – MBDA will create openness and transparency in minority business government contract reporting

Access to Markets – MBDA will support the National Export Initiative to double exports over the next 5 years. Minority businesses are already twice as likely to export compared to non-minority-owned firms.

MBDA will foster innovation and entrepreneurship within minority communities in high-growth industries such as:

Clean and Renewable EnergyGreen TechnologyHealthcare Information Technology

MBDA’s New Strategic FocusIncrease Size, Scale and Capacity of Minority Business Enterprises

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Contacting MBDA Public Affairs

For more information, please contact:Email: public_affairs@mbda.govPhone: 202.482.6272

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Contact Information

• U.S. Census BureauPublic Information OfficePhone: 301.763.3030

• Minority Business Development AgencyPublic Affairs OfficePhone: 202.482.6272