Guest Column
Hispanics represent the largest group of minority-business owners
- Hispanics represent the largest group of minority-business owners
- By Nicole Ibarra
- April 16, 2007
Hispanics represent the largest group of minority-business owners, claiming 6.6 percent of the 23 million U.S. firms, according to a demographic review released by the U.S. Small Business Administration this month.
Hispanics also own 3.7 percent of all employer firms and 7.4 percent of non-employer firms, according to figures collected from the 2002 Survey of Business Owners (the latest data available from the U.S. Census Bureau). The report found that Hispanic-owned businesses in 2002 were concentrated in administrative and support, waste management, and remediation services.
Despite the progress, one figure suggests that Hispanic small businesses still have an uphill road. On average, for every dollar made by a white-owned firm, a Hispanic-owned firm made 56 cents. Black-owned businesses made just 43 cents, comparatively.
The study also measured the performance of
four Hispanic subgroups: Mexican, Mexican American, and Chicano;
Puerto Rican; Cuban; and other Spanish/Hispanic/Latino.
Among the subgroups, Cubans had the highest ratio of employer firms
to total firms (18 percent), the highest average receipts per
non-employer firm ($36,692), the highest average receipts per
employer firm ($1,108,998) and the highest average payroll per
employee ($28,769).
The subgroup of Mexicans, Mexican Americans and Chicanos had the highest average number of employees per employer with 8.1.
The survey also revealed that the majority of Asians and Hispanics in the U.S. workforce are immigrants, either naturalized or not. Among self-employed Hispanics, 56.8 percent are immigrants.
Six general demographic groups were covered in
the survey: Hispanic, White, Black, Asian, American Indian or
Alaskan Native and Native Hawaiian or Pacific Islander.
Other minorities trailed Hispanics in business ownership. Blacks
owned 5.0 percent of all U.S. firms while Asians and Pacific
Islanders owned 4.7 percent. In total, minorities owned
approximately 18 percent of the 23 million U.S. firms in 2002.
To view the complete report, visit the Small Business Administration's Web site at http://www.sba.gov/advo/research/rs298tot.pdf.
(In accordance with Title 17 U.S.C. Section 107, this material is distributed by HispanicVista.com (www.hispanicvista.com) without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.)