Number of Minority Women-Owned
Businesses Expected To Reach 1.3 Million in 2002
Growth rates exceed national average, 1 in 5
women-owned firms now minority-owned
Washington, DC -- December 18, 2001
-- Businesses owned by women of color are growing in number at
rates exceeding all women-owned firms and the national average, according
to a new report from Center for Women’s Business Research (founded as the
National Foundation for Women Business Owners). The Center projects that
as of 2002, there will be an estimated 1.3 Million businesses owned by
women of color in the U.S., employing more than 822,000 people and
generating $100.6 billion in sales. Between 1997 and 2002, the Center
estimates that the number of privately-held, majority-owned minority
women-owned firms will have grown by 31.5%, compared to 14.3% among all
women-owned firms, 29.7% among all minority-owned firms, and 6.8% among
all U.S. firms.
Sponsored by Kauffman Center for Entrepreneurial Leadership, the
Center’s report, “Minority Women-Owned Businesses in the United States,
2002” analyzes data published by the U.S. Bureau of the Census and
presents the most up-to-date information currently available on
majority-owned, privately-held firms owned by women of color in the United
States.
“Women of color continue to start businesses at a faster rate than
other women and all businesses, ” said Nina McLemore, Chair of Center for
Women’s Business Research and President of Regent Capital. “The number of
minority women-owned firms increased 31.5% between 1997 and 2002, more
than twice as fast as all women-owned firms, and more than four times the
national average. Further, based on recent growth rates, in 2002 there
will be 14,116 minority women-owned firms with revenues of $1 million or
more, and 111 with 100 or more employees.”
As of 2002, the Center estimates that there are 470,344 Hispanic
women-owned firms, 365,110 African American women-owned firms, 358,503
firms owned by women of Asian or Pacific Islander heritage, and 77,483
firms owned by women of Native American or Alaska Native heritage. Between
1997 and 2002, the number of these firms will have grown by 39.3%, 16.7%,
44.6%, and 44.6%, respectively.
“There has been growth in women’s entrepreneurship among every major
ethnic group,” said Jasmin Rodriguez, Manager of Women’s Initiatives for
Kauffman Center. “This is a positive sign, not only for these women
business owners but for the United States as a whole. Through our research
we’ve learned that greater participation in entrepreneurship among people
from a variety of backgrounds can play an important role in facilitating
economic growth.”
Businesses owned by women of color represent nearly one-third of all of
the firms owned by persons of color, according to the report. In
comparison, all majority-owned, privately held women-owned firms comprise
28% of all U.S. businesses. Businesses owned by women of color now
represent 20% of all women-owned firms, meaning that one in five
women-owned firms is owned by a woman or women of color.
More than one-half of minority women-owned firms (58%) are in the service
sector, which also had the greatest growth (33% between 1997 and 2002).
Other industries with the greatest growth were
transportation/communications/public utilities (21%) and agriculture (7%).
The 10 states with the greatest number of minority women-owned firms in
2002 are: 1) California; 2) New York; 3) Texas; 4) Florida; 5) Illinois;
6) Georgia; 7) Maryland; 8) New Jersey; 9) Virginia; and 10) North
Carolina.
The 10 states with the fastest growth in the number of minority
women-owned firms from 1997 to 2002 are: 1) Montana 2) North Dakota; 3)
Maine; 4) Oklahoma; 5) South Dakota; 6) Vermont; 7) West Virginia; 8)
Idaho; 9) New Hampshire; and 10) Alaska.
The 10 states where minority women-owned firms comprise the greatest
share of all women-owned firms are: 1) Hawaii (60%); 2) District of
Columbia (40%); 3) California (35%); 4) New Mexico and New York (tied –
32%); 6) Texas (29%); 7) Maryland and Florida (tied – 28%); 9) Alaska,
Georgia and Oklahoma (tied – 24%).
“Due to a more restrictive definition of a woman-owned business in the
most recent Census and to the limitations that caused when comparing data
from previous years, we know that our estimates are conservative,” said
McLemore. “Thus, we know that actual growth rates and estimates for sales
and employment are higher than reported (18.8% and 5.7%, respectively).
Since the Census Bureau is only counting privately-held, majority-owned
firms, and is no longer counting women who own 50% of a business as it did
in the past, the data were not directly comparable to data gathered
previously. Nonetheless, despite these limitations, we are pleased to see
continued growth in the number of women of color in business and growth in
their economic contributions as well. These trends will likely continue at
solid rates into the future.”
Editor’s Note: When referring to
the reports, they should be called “Minority Women-Owned Businesses in the
United States, 2002,” published by Center for Women’s Business Research
(founded as the National Foundation for Women Business Owners).
The report, “Minority Women-Owned Businesses in the United States, 2002,”
is available for $130. (Discounts are available for Center corporate
partners and NAWBO members.) Individual minority group reports, and an
overall summary report, are available free of charge on the
Center’s Web site at
http://www.womensbusinessresearch.org/MinorityReports.html
Center for Women’s Business Research, founded as the National
Foundation for Women Business Owners, is the premier source of knowledge
about women business owners and their enterprises worldwide.