Census Bureau Reports the Number of Black-Owned Businesses Increased at Triple the National Rate

CensusLogo-white.png     From 2002 to 2007, the number of black-owned businesses increased by 60.5 percent to 1.9 million, more than triple the national rate of 18.0 percent, according to the U.S. Census Bureau's Survey of Business Owners. Over the same period, receipts generated by black-owned businesses increased 55.1 percent to $137.5 billion.

“Black-owned businesses continued to be one of the fastest growing segments of our economy, showing rapid growth in both the number of businesses and total sales during this time period,” said Census Bureau Deputy Director Thomas Mesenbourg.

These new data come from the Survey of Business Owners: Black-Owned Businesses: 2007. The survey provides detailed information every five years for black-owned businesses, including the number of firms, sales and receipts, number of paid employees and annual payroll.

Data are presented by geographic area (nation, state, county, city and metro area), industry and size of business. Preliminary national and state data were released in July 2010.

In 2007, nearly four in 10 black-owned businesses operated in the health care and social assistance; and repair, maintenance, personal and laundry services sectors. The retail trade and health care and social assistance sectors accounted for 27.4 percent of black-owned business revenue.

Among states, New York had 204,032 black-owned businesses and accounted for 10.6 percent of the nation's black-owned businesses, followed by Georgia, with 183,874 black-owned businesses (9.6 percent) and Florida, with 181,437 (9.4 percent).

Among counties, Cook, Ill., had the most black-owned businesses, with 83,733, accounting for 4.4 percent of all the nation's black-owned businesses. Los Angeles followed with 59,680 (3.1 percent) and Kings, N.Y., with 52,705 businesses (2.7 percent).

Among cities, New York had the most black-owned businesses, with 154,929 (8.1 percent of all the nation's black-owned businesses), followed by Chicago, with 58,631 (3.1 percent), Houston, with 33,062 (1.7 percent) and Detroit, with 32,490 (1.7 percent).

Other highlights:

  • Of the 1.9 million black-owned businesses in 2007, 106,824 had paid employees, an increase of 13.0 percent from 2002. These businesses employed 921,032 people, an increase of 22.2 percent; their payrolls totaled $23.9 billion, an increase of 36.3 percent. Receipts from black-owned employer businesses totaled $98.9 billion, an increase of 50.2 percent from 2002.
  • In 2007, 1.8 million black-owned businesses had no paid employees, an increase of 64.5 percent from 2002. These nonemployer businesses' receipts totaled $38.6 billion, an increase of 69.0 percent.
  • The number of black-owned businesses with receipts of $1 million or more increased by 35.4 percent to 14,507 between 2002 and 2007.

The Survey of Business Owners defines black-owned businesses as firms in which blacks or African-Americans own 51 percent or more of the equity, interest or stock of the business. Additional reports from the survey highlighting other minority- and veteran-owned businesses will be issued over the next year. Subsequently, separate publications will be issued highlighting additional characteristics of all businesses and their owners.

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The Survey of Business Owners is conducted every five years as part of the economic census. The 2007 survey collected data from a sample of more than 2.3 million businesses. Data collected in a sample survey are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage. More details concerning the SBO survey design, methodology and data limitations can be found at http://www.census.gov/econ/sbo/methodology.html.

 

SOURCE: http://www.census.gov/newsroom/releases/archives/business_ownership/cb11-24.html

 

 

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  • Caricom

    This is great news! May more of our brothers and sisters take the plunge to start their own businesses and break the total dependency that typically prevails among us. Every dollar we spend outside the black business community is another dollar we are giving to our oppressors to improve their businesses, communities, schools and socio-economic networks.

    I am delighted to know of this trend and hope that it escalates. Let those among us who are conscious of the benefits of doing business with our own set the model. Somewhere I read that if we spent just 10% of our money with our own people we could eliminate black unemployment in this country. Wow! What a goal to shoot for. Let all of us do our part and consciously decide to do business with our own whenever possible.

    Meanwhile, a message to our black businesses: Step up to the plate and be prepared to bring your game face to the battle. Black people are not fools and will not settle for sub-par performance on any level. The expectations are higher for you, just as they were in the academic and job search arenas. Just because you are in business, the effort to excel must not be diminished. You have launched a business and are surviving, however, if you want to take your business to another level and take advantage of the awakening consciousness of our people, you will be pressed to elevate your game and earn our support.

    All in all, I am delighted to sense the awakening of our innate genius and trust that this is a turning point in our sojourn in Babylon and further awakening will take place. Shalom, my people.

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