SUMMARY OF FINDINGS________________________MINORITY-/WOMEN-OWNED BUSINESSES =>API & AIAN-OWNED BUSINESSES All the following data are based only on the 606,438 Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned (API/AIAN) Businesses tabulated in the detailed tables that follow. They do not include the 99,234 firms discussed in the previous section for which detailed estimates are not available. Firms owned by Asians, Pacific Islanders, American Indians, and Alaska Natives increased 61 percent from 376,711 in 1987 to 606,438 in 1992. Receipts increased 194 percent from $34 billion to $100 billion. Comparable data for all businesses show a 26 percent increase in number from 13.7 million in 1987 to 17.3 million in 1992, while receipts grew 67 percent from $1,995 billion to $3,324 billion. The data in this report were collected as part of the 1992 Economic Census from a large sample of all non-farm businesses filing 1992 tax forms as individual proprietorships, partnerships, or subchapter S corpora-tions, and with receipts of $500 or more. Table A. Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Businesses by Legal Form of Organization: 1992 Minority-owned firms Legal form of organization Firms Receipts (thous) ($bill) All industries ............ 606 100.0 Individual proprietorships 502 35.4 Partnerships............... 50 23.7 Subchapter S corporations . 55 41.0 Table B. All U.S. Firms by Legal Form of Organiza-tion: 1992 All U.S. firms Legal form of organization Firms Receipts (thous) ($bill) All industries ............ 17,253 3,324.3 Individual proprietorships 14,599 721.6 Partnerships............... 1,090 665.0 Subchapter S corporations . 1,564 1,938.7 =>INDUSTRY CHARACTERISTICS Forty-five percent of these API/AIAN-owned firms were in the service industry and they accounted for 26 percent of gross receipts in that industry. Nearly two-thirds of these service firms provided business, personal, and health services. The retail trade industry accounted for 22 percent of these API/AIAN-owned firms and 29 percent of the receipts. Table C. Top Industry Receipt Leaders for Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms: 1992 Industry Receipts (million dollars) RETAIL TRADE .................. 28,768 Food stores ..................... 7,037 Miscellaneous retail ............ 6,567 Eating and drinking places ...... 6,457 Auto dealers & gas serv stations. 5,190 SERVICES ...................... 25,595 Health services ................. 8,851 Business services ............... 4,235 Hotels and other lodging places . 3,316 Eng, acctng, research mgmt, and related services ........... 2,505 Personal services................ 2,459 Auto repair, serv and parking.... 1,173 WHOLESALE...................... 18,533 Wholesale trade-nondurable goods. 9,304 Wholesale trade-durable goods.... 9,229 FINANCE, INSURANCE, & REAL EST. 8,988 Real estate ..................... 7,384 Insurance agts, brokers, & serv.. 511 Holding & other investment off... 482 Security and commodity brokers... 426 =>GEOGRAPHIC CHARACTERISTICS California had the largest number of API/AIAN-owned firms, at 232,672 or 38.4 percent. California also accounted for the largest share of the $100 billion in receipts at $37.7 billion. New York and Texas were the next two largest states with 63,053 and 38,763 firms, respectively. New York accounted for $10.9 billion in receipts and Texas $5.7 billion. The top 10 MA's account for over half of the API/AIAN-owned firms and receipts in the United States; that is, 52.3 percent of the firms and 51.4 percent of the gross receipts. (See table F.) Table E. Ten States With Largest Share of Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms Compared to All U.S. Firms and Population: 1992 Minority- All Minority State owned U.S. as a firms firms percent (num) (num) of all Hawaii ........... 38,392 79,050 48.6 California .......232,672 2,259,327 10.3 Alaska ........... 3,916 58,898 6.6 NewYork........... 63,053 1,159,700 5.4 New Jersey........ 23,116 517,204 4.5 New Mexico ....... 4,608 107,377 4.3 Washington........ 15,648 372,975 4.2 Maryland ......... 13,697 328,403 4.2 Dist of Columbia.. 1,393 35,344 3.9 Virginia.......... 13,752 391,451 3.5 Minority- All U.S. Minority State sales & sales & as a receipts receipts percent ($mils) ($mils) of all Hawaii ........... 4,767 10,724 44.4 California ....... 37,685 408,481 9.2 Alaska ........... 379 7,114 5.3 NewYork........... 10,853 327,619 3.3 New Jersey........ 4,385 141,761 3.1 New Mexico ....... 226 11,751 1.9 Washington........ 2,936 67,795 4.3 Maryland ......... 1,584 57,909 2.7 Dist of Columbia.. 323 11,061 2.9 Virginia.......... 1,754 66,555 2.6 - 1992 - All Minority State Minority- U.S. as a pop. pop. percent (1,000) (1,000) of all Hawaii ........... 687 1,156 59.6 California ....... 3,254 30,895 10.5 Alaska ........... 111 588 18.9 NewYork........... 800 18,110 4.4 New Jersey........ 316 7,820 4.0 New Mexico ....... 149 1,582 9.4 Washington........ 320 5,143 6.2 Maryland ......... 166 4,917 3.4 Dist of Columbia.. 14 585 2.4 Virginia.......... 194 6,395 3.0 Source of population data: U.S. Department of Commerce. Table H. Comparison of Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in 10 Larg-est Cities With Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in State: 1992 MSA Firms Receipts (number) ($1,000) New York, NY .................... 46,456 6,762,552 Los Angeles, CA ................. 33,607 6,434,213 Honolulu, HI .................... 18,706 3,303,054 San Francisco, CA ............... 14,972 2,571,756 San Jose, CA .................... 10,338 1,149,620 Houston, TX ..................... 10,181 1,877,129 Chicago, IL ..................... 8,027 1,559,338 San Diego, CA ................... 7,164 926,572 Seattle, WA ..................... 4,139 962,464 Oakland, CA ..................... 3,719 470,170 State Firms Receipts Pct city to State (number) ($1,000) Firms Receipts New York ........................ 63,053 10,852,575 74 62 California ...................... 232,672 37,684,971 14 17 Hawaii .......................... 38,392 4,766,788 49 69 California ...................... 232,672 37,684,971 6 7 California ...................... 232,672 37,684,971 4 3 Texas ........................... 38,763 5,707,601 26 33 Illinois ........................ 21,743 5,080,170 37 31 California ...................... 232,672 37,684,971 3 2 Washington ...................... 15,648 2,935,527 26 33 California ...................... 232,672 37,684,971 2 1 Table F. Comparison of Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in 10 Largest Metropolitan Areas With Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in State: 1992 [For definition of MA's, see appendix B] MSA Firms Receipts (number) ($1,000) Los Angeles-Long Beach, CA PMSA.. 92,209 16,890,194 New York, PMSA................... 50,283 7,696,258 Honolulu, Hawaii MSA ............ 29,940 4,006,183 Orange County, CA PMSA .......... 27,252 3,988,882 San Francisco, CA PMSA .......... 24,185 3,971,856 Oakland, CA PMSA ................ 19,758 2,733,731 Washington, DC-MD-VA-WV MSA...... 19,722 2,272,829 Chicago, IL PMSA ................ 19,706 4,747,008 San Jose, CA PMSA................ 19,113 2,502,356 Houston, TX PMSA ................ 15,010 2,584,437 State Firms Receipts Pct MA to State (number) ($1,000) Firms Receipts California ...................... 232,672 37,684,971 40 45 New York ........................ 63,053 10,852,575 80 71 Hawaii .......................... 38,392 4,766,788 78 84 California ...................... 232,672 37,684,971 12 11 California ...................... 232,672 37,684,971 10 11 California ...................... 232,672 37,684,971 9 7 District of Columbia ............ (X) (X) (X) (X) Illinois ........................ 21,743 5,080,170 91 93 California ...................... 232,672 37,684,971 8 7 Texas ........................... 38,763 5,707,601 39 45 Table G. Comparison of Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in 10 Largest Counties With Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms in State: 1992 MSA Firms Receipts (number) ($1,000) Los Angeles, CA ................. 92209 16,890,194 Honolulu, HI .................... 29,940 4,006,183 Orange, CA ...................... 27,252 3,988,882 Queens, NY ...................... 20,835 1,774,981 Santa Clara, CA.................. 19,113 2,502,356 San Francisco, CA ............... 14,972 2,571,756 Cook, IL ........................ 14,881 3,599,315 Alameda, TX ..................... 13,697 2,056,023 Harris, TX ...................... 13,468 2,367,107 New York, NY .................... 12,147 4,046,833 State Firms Receipts Pct cnty to State (number) ($1,000) Firms Receipts California ...................... 232,672 37,684,971 40 45 Hawaii .......................... 38,392 4,766,788 78 84 California ...................... 232,672 37,684,971 12 11 New York ........................ 63,053 10,852,575 33 16 California ...................... 232,672 37,684,971 8 7 California ...................... 232,672 37,684,971 6 7 Illinois ........................ 21,743 5,080,170 68 71 Texas ........................... 38,763 5,707,601 35 36 Texas ........................... 38,763 5,707,601 35 41 New York ........................ 63,053 10,852,575 19 37 =>LEGAL FORM OF ORGANIZATION Significant shifts occurred in these firms' legal forms of organization between 1987 and 1992. The majority operated as individual proprietorships in 1992, 502,022 or 82.8 percent, down from 90.4 percent in 1987. These sole proprietors accounted for 35.4 percent of gross receipts compared to 62.4 percent in 1987. Of the total number of firms, 54,927 or 9.1 percent were subchapter S corpora-tions, accounting for 40.9 percent of the gross receipts. This is up from 4.5 percent of the firms and 25.1 percent of the gross receipts in 1987. Partnerships accounted for 8.2 percent of the total number of firms and 23.7 percent of gross receipts. They accounted for 5.1 percent of firms and 12.5 percent of gross receipts in 1987. Table D. Percent Increase by Legal Form of Organization for Asian-, Pacific Islander-, American Indian-, and Alaska Native-Owned Firms Compared to All U.S. Firms : 1987 to 1992 Percent increase Legal form of organization Minority- All U.S. owned firms firms Individual proprietorships. 47.4 35.4 Partnerships............... 156.9 65.1 Subchapter S corporations.. 226.3 71.6 =>SIZE OF FIRM Twenty-two and a half percent of API/AIAN-owned firms had paid employees in 1992 and accounted for 81.4 percent of gross receipts. There were 705 firms with 100 employees or more, accounting for $17.9 billion in gross receipts. The 2.1 percent of firms with gross receipts of $1 million or more accounted for 54.7 percent of total gross receipts. =>API & AIAN-OWNED FIRMS COMPARED TO ALL U.S. FIRMS API/AIAN-owned firms made up 3.5 percent of all firms in the United States in 1992 and accounted for 3 percent of gross receipts. Only eight States had 4 percent or more of their firms owned by these minority groups (see table E). Hawaii had the largest share of firms owned by Asians, Pacific Islanders, American Indians, and Alaska Natives at 48.6 percent. They had 44.4 percent of all receipts in Hawaii. The smallest share of firms owned by these minority groups was in Maine with 0.4 percent of all firms and 0.5 percent of all receipts. Average receipts for these API/AIAN-owned businesses were $165,000 compared to $193,000 for all U.S. firms. Average receipts for API/AIAN firms exceeded those for all U.S. firms in the construction industry, $183,000 compared to $167,000; and also in the service industry, $94,000 compared to $84,000. However, manufacturing firms aver-aged only $441,000 in receipts per firm compared to $873,000 for all U.S. firms. ###