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Minority, female businesses growing faster than U.S. average

Minority, female businesses growing faster than U.S. average
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The number of minority-owned businesses has grown in Indiana, Illinois and the rest of the United States faster than the national total of all businesses, a U.S. Census Bureau survey found.

A preliminary report released Tuesday from the Census Bureau's 2007 Survey of Business Owners said minority-owned businesses increased an estimated 50.1 percent to about 41,000 in Indiana and 45.7 percent in Illinois to about 223,000 between 2002 and 2007. Nationally, minority-owned businesses increased 45.6 percent to 5.8 million. 

The number of female business owners in the country rose 20.1 percent in the same period to 7.8 million. There were roughly 130,000 female-owned businesses in Indiana in 2007, up 9 percent, and about 343,000 in Illinois, up 20.4 percent.

The number of all U.S. businesses increased 18 percent to 27.1 million.

Total sales at all U.S. businesses increased 33.5 percent to $30.2 trillion in 2007. Sales at minority-owned businesses rose 55.6 percent to $1 trillion. For female-owned businesses, receipts increased 24.1 percent $10.3 trillion.

Ownership was defined as having 51 percent or more of the stock or equity in a business and the minority definition included the racial and ethnic categories of black, Hispanic, Asian, American Indian or Alaska Native, and Native Hawaiian or Pacific Islander.

When hearing about the statistics, Terrie Daniel, outreach director for the Indiana Minority and Women's Business Enterprises Division, said the news is great for the state and in terms of the economic impact of minority- and female-owned businesses.

Daniel said the office actively reaches out to these businesses and helps them achieve financial sustainability through newsletters and workshops on issues such as how to create a business plan and how to be adequately bonded on construction projects. The office also does outreach statewide to get business owners to become a state-certified minority or disadvantaged business enterprise, which could help them earn public contracts.

"We're heavily involved in trying to give these businesses the resources they need to thrive," Daniel said.

David Hinson, national director of the U.S. Commerce Department's Minority Business Development Agency, said in a statement Tuesday that while he was encouraged by the growth of the minority business community, economic parity remains elusive for many of them.

Average gross sales for minority-owned businesses increased to $179,000 in 2007 from $167,000 in 2002. For non-minority-owned businesses, average gross sales was $490,000. He called the gap "unacceptable" and advocated to aggressively grow minority-owned and operated firms.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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