SUMMARY OF FINDINGS________________________MINORITY-/WOMEN-OWNED BUSINESSES =>BLACK-OWNED BUSINESSES Black-owned firms increased 46 percent from 424,165 in 1987 to 620,912 in 1992. Receipts grew at a rate similar to that of all businesses, increasing 63 percent from $19.8 billion to $32.2 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 corporations, and with receipts of $500 or more. Table A. Black-Owned Businesses by Legal Form of Organization: 1992 Black-Owned Firms Legal form of organization Firms Receipts ($1,000) ($bil.) All industries........... 621 32.2 Individual proprietorships. 584 16.0 Partnerships............... 15 4.0 Subchapter S corporations.. 22 12.2 Table B. All U.S. Firms by Legal Form of Organization: 1992 All U.S. Firms Legal form of organization Firms Receipts ($1,000) ($bil.) All industries........... 17,253 3,324.3 Individual proprietorships. 14,599 721.6 Partnerships............... 1,090 665.0 Subchapter S corporations.. 1,564 1937.7 =>INDUSTRY CHARACTERISTICS In 1992, the majority of Black-owned firms were concentrated in the service industries. These industries accounted for 54 percent of all Black-owned firms and 34 percent of gross receipts. Forty-seven percent of the total number of Black-owned service firms are concentrated in business and personal services, accounting for 35 percent of gross receipts. The retail trade industry accounted for the next largest concentration of Black-owned firms at 14 percent of the firms and 22 percent of the receipts. Sixty-eight percent of the receipts generated by black-owned firms were concentrated in services, retail trade, and finance, insurance and real estate. Health, business, and personal services accounted for 61 percent of the service industry revenue. Table C. Top Industry Receipt Leaders for Black-Owned Firms: 1992 Receipts Industry ($mil.) SERVICES............................ 11,057 Health services..................... 2,859 Business services................... 2,371 Personal services.................. 1,469 Engineering, accounting, research... management, and related services.... 1,353 Amusement and recreation services... 665 RETAIL TRADE........................ 6,968 Automotive dealers and gasoline..... service stations.................... 2,384 Eating and drinking places.......... 1,786 Miscellaneous retail................ 1,247 Food stores......................... 978 Apparel and accessory stores........ 204 FINANCE, INSURANCE, AND REAL ESTATE. 3,777 Depository institutions............ (D) Real estate......................... 1,553 Insurance agents, brokers, & service 308 Holding and other investment offices (D) Security and commodity brokers...... (D) WHOLESALE TRADE..................... 2,944 Wholesale trade--nondurable goods... 1,837 Wholesale trade--durable goods...... 1,107 CONSTRUCTION........................ 2,651 Special trade contractors........... 1,466 General building contractors........ 840 Subdividers and developers, n.e.c... 189 Heavy construction contractors...... 156 =>GEOGRAPHIC CHARACTERISTICS California had the most Black-owned firms at 68,968 or 11 percent with receipts of $5.5 billion or 17 percent. New York was second with 51,312 or 8 percent with receipts of $2.2 billion or 7 percent. Texas was slightly behind New York in number of firms with 50,008 but was second in receipts with $2.3 billion. Texas accounted for 8 percent of all Black-owned firms and 7 percent of receipts. The largest MSA's accounted for 36.8 percent of the total number of black-owned firms in the United States and 43.2 percent of gross receipts. Table E. Comparison of Black-Owned Firms in 10 Largest Metropolitan Areas With Black-Owned Firms in State: 1992 [For definition of MA's, see appendix B] MSA Firms Receipts (number) ($1,000) New York, NY PMSA ............... 39,404 1,691,590 Washington, DC-MD-VA-WV MSA...... 37,988 1,706,734 Los Angeles-Long Beach, CA PMSA.. 32,645 3,618,047 Chicago, IL PMSA................. 24,644 1,602,489 Atlanta, GA MSA ................. 23,488 1,049,164 Houston, TX PMSA................. 18,840 831,642 Phildelphia, PA-NJ PMSA ......... 13,956 1,109,837 Detroit, MI PMSA................. 13,910 947,118 Baltimore, MD PMSA .............. 12,492 495,684 Dallas, TX PMSA.................. 11,395 865,080 State Firms Receipts Pct MSA to State (number) ($1,000) Firms Receipts New York ........................ 51,312 2,267,600 77 75 District of Columbia ............ (X) (X) (X) (X) California ...................... 68,968 5,478,365 47 66 Illinois ........................ 28,433 1,773,293 87 90 Georgia ......................... 38,264 1,677,083 61 63 Texas ........................... 50,008 2,339,221 38 36 Pennsylvania..................... 15,917 1,133,581 88 98 Michigan ........................ 19,695 1,268,426 71 75 Maryland ........................ 35,758 1,241,530 35 40 Texas ........................... 50,008 2,339,221 23 37 Table F. Comparison of Black-Owned Firms in 10 Largest Counties With Black- Owned Firms in State: 1992 County Firms Receipts (number) ($1,000) Los Angeles, CA.................. 32,645 3,618,047 Cook, IL......................... 21,937 1,370,987 Harris, TX....................... 16,536 707,032 Prince George's, MD.............. 14,770 423,729 Kings, NY........................ 13,372 394,468 Wayne, MI........................ 10,421 560,218 Dade, FL......................... 10,387 799,685 District of Columbia............. 10,111 451,861 Dallas, TX....................... 10,075 821,883 Fulton, GA....................... 8,667 364,214 State Firms Receipts % county to State (number) ($1,000) Firms Receipts California....................... 68,968 5,478,365 47 66 Illinois......................... 28,433 1,773,293 77 77 Texas............................ 50,008 2,339,221 33 30 Maryland......................... 35,758 1,241,530 41 34 New York......................... 51,312 2,267,600 26 17 Michigan......................... 19,695 1,268,426 53 44 Florida.......................... 40,371 2,265,451 26 35 District of Columbia............. (X) (X) (X) (X) Texas............................ 50,008 2,339,221 33 30 Georgia.......................... 38,264 1,677,083 23 22 Table G. Comparison of Black-Owned Firms in 10 Largest Cities With Black- Owned Firms in State: 1992 City Firms Receipts (number) ($1,000) New York, NY..................... 35,120 1,466,994 Los Angeles, CA ................. 15,371 2,628,903 Chicago, Il ..................... 15,328 1,087,267 Houston, TX ..................... 13,592 537,490 District of Columbia............. 10,111 451,861 Detroit, MI ..................... 9,275 486,092 Baltimore, MD ................... 7,542 233,164 Philadelphia, PA................. 7,183 549,414 Dallas, TX ...................... 7,071 330,354 Atlanta, GA...................... 5,762 280,701 State Firms Receipts Pct city to State (number) ($1,000) Firms Receipts New York ........................ 51,312 2,267,600 68 65 California ...................... 68,968 5,478,365 22 48 Illinois ........................ 28,433 1,773,293 54 61 Texas ........................... 50,008 2,339,221 27 23 District of Columbia ............ (X) (X) (X) (X) Michigan ........................ 19,695 1,268,426 47 38 Maryland ........................ 35,758 1,241,530 21 19 Pennsylvania..................... 15,917 1,133,581 45 48 Texas ........................... 50,008 2,339,221 14 14 Georgia ......................... 38,264 1,677,083 15 17 =>LEGAL FORM OF ORGANIZATION Ninety-four percent of black-owned firms operated as individual proprietorships in 1992, accounting for 50 percent of gross receipts. Subchapter S corporations accounted for only 4 percent of the total number of firms but 38.1 percent of the gross receipts. Of the total number of firms, 14,727 or 2.4 percent were partnerships, accounting for 12.4 percent of gross receipts. Table D. Percent Increase by Legal Form of Organization for Black-Owned Firms Compared to All U.S. Firms: 1987 to 1992 ---Percent increase-- Legal form of organization Black-owned All U.S. firms firms Individual proprietorships. 45.9 20.4 Partnerships............... 30.8 65.1 Subchapter S corporations.. 74.5 71.6 =>SIZE OF FIRM Black-owned firms with paid employees accounted for 10 percent of the total number of firms and 70 percent of gross receipts of Black firms. 342 of these firms had 100 or more employees and accounted for $6 billion in receipts. Fifty-six percent of Black-owned firms had receipts under $10,000; little more than 3,000 firms had sales of $1 million or more. ###