SUMMARY OF FINDINGS________________________MINORITY-/WOMEN-OWNED BUSINESSES =>HISPANIC-OWNED BUSINESSES Hispanic-owned firms increased 83 percent from 422,373 in 1987 to 771,708 in 1992. Receipts increased 195 percent from $24.7 billion to $72.8 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 propri-etorships, partnerships, or subchapter S corporations, and with receipts of $500 or more. Table A. Hispanic-Owned Businesses by Legal Form of Organization: 1992 Hispanic-owned firms Legal form of organization Firms Receipts (thous.) ($bil.) All industries .......... 772 72.8 Individual proprietorships. 689 25.7 Partnerships............... 33 11.9 Subchapter S corporations . 50 35.2 Table B. All U.S. Firms by Legal Form of Organization: 1992 All U.S. firms Legal form of organization Firms Receipts (thous.) ($bil.) All industries .......... 17,253 3,324.3 Individual proprietorships. 14,599 721.6 Partnerships............... 1,090 665.0 Subchapter S corporations . 1,564 1,937.7 =>INDUSTRY CHARACTERISTICS In 1992, the majority of Hispanic-owned firms were concentrated in the service industries. These industries accounted for 45 percent of all Hispanic-owned firms but only 23 percent of gross receipts. Fifty-one percent of the total number of Hispanic-owned service firms were concentrated in business and personal services, accounting for 31 percent of gross receipts.The retail trade industry accounted for the next largest concentration of Hispanic-owned firms at 14 percent of the firms and 24 percent of the receipts. Sixty-five percent of the receipts generated by Hispanic-owned firms were concentrated in retail trade, services, and wholesale trade. Automotive dealers and gasoline service stations, eating and drinking places, and food stores accounted for 72 percent of the retail trade industry revenue. Table C. Top Industry Receipt Leaders for Hispanic-Owned Firms: 1992 Industry Receipts (million dollars) RETAIL TRADE .................. 17,731 Auto dealers & gas serv stations. 5,475 Eating and drinking places ...... 3,954 Food stores ..................... 3,338 Miscellaneous retail ............ 2,849 SERVICES ...................... 16,787 Health services ................. 4,131 Business services ............... 3,467 Eng, acctng, research mgmt, & related services ............... 1,828 Personal services................ 1,758 Auto repair, services and parking 1,553 Legal services................... 1,286 WHOLESALE ..................... 12,489 Wholesale trade-nondurable goods 6,483 Wholesale trade-durable goods.... 6,006 CONSTRUCTION .................. 8,212 Special trade contractors ....... 4,626 General building contractors .... 2,205 Heavy construction .............. 916 Subdividers and developers, n.e.c 465 =>GEOGRAPHIC CHARACTERISTICS California had the largest number of firms (249,717) and receipts ($19.6 billion), accounting for 32.4 percent of all Hispanic-owned firms and 26.9 percent of their receipts. Texas had the second largest number of firms (155,909) but ranked third in receipts with $11.8 billion, accounting for 20.2 percent of all Hispanic-owned firms but only 16.2 percent of their receipts. Florida was third in number of firms (118,208) but was second in receipts with $16.1 billion. Florida accounted for 15.3 percent of all Hispanic-owned firms but 22.2 percent of their receipts. The top 10 MA's account for almost half of the Hispanic-owned firms and receipts in the United States, i.e., 48.2 percent of the firms and 47.2 percent of the gross receipts. (See table F.) Table E. Ten States With Largest Share of Hispanic-Owned Firms Compared to All U.S. Firms and Population: 1992 Hispanic- All Hispanic State owned U.S. as a firms firms percent (num) (num) of all New Mexico ...... 21,586 107,377 20.1 Texas ...........155,909 1,256,121 12.4 Florida .........118,208 1,000,542 11.8 California ......249,717 2,259,327 11.1 Arizona ......... 17,835 248,337 7.2 Nevada .......... 3,900 87,786 4.4 NewYork ......... 50,601 1,159,700 4.4 New Jersey ...... 22,198 517,204 4.3 Colorado ........ 13,817 323,147 4.3 Dist of Columbia. 1,452 35,344 4.1 Hispanic- All U.S. Hispanic State sales & sales & as a receipts receipts percent ($mils) ($mils) of all New Mexico ...... 1,480 11,751 12.6 Texas ........... 11,796 229,833 5.1 Florida ......... 16,127 172,499 9.3 California ...... 19,553 408,481 4.8 Arizona ......... 1,298 35,223 3.7 Nevada .......... 484 19,593 2.5 NewYork ......... 4,732 327,619 1.4 New Jersey ...... 2,828 141,761 2.0 Colorado ........ 1,212 46,763 2.6 Dist of Columbia. 312 11,061 2.8 All Hispanic State Hispanic- U.S. as a pop. pop. percent (1,000) (1,000) of all New Mexico ...... 615 1,581 38.9 Texas ........... 4,689 17,683 26.5 Florida ......... 1,733 13,483 12.9 California ...... 8,353 30,895 27.0 Arizona ......... 751 3,832 19.6 Nevada .......... 149 1,336 11.2 NewYork ......... 2,362 18,110 13.1 New Jersey ...... 807 7,820 10.3 Colorado ........ 457 3,465 13.2 Dist of Columbia. 35 585 6.0 Source of population data: U.S. Department of Commerce. Table F. Comparison of Hispanic-Owned Firms in 10 Largest Metropolitan Areas With Hispanic-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 . 109,104 7,844,099 Miami, FL PMSA .................. 77,300 10,949,254 New York, NY PMSA ............... 39,175 3,512,688 Houston, TX PMSA ................ 33,765 2,650,853 Riverside-San Bernardino, CA PMSA 21,380 1,236,173 San Antonio, TX MSA ............. 21,244 1,652,792 Orange County, CA PMSA .......... 19,270 1,614,885 San Diego, CA MSA ............... 18,983 1,507,329 Chicago, IL PMSA ................ 16,663 1,795,906 Dallas, TX PMSA ................. 14,791 1,581,423 State Firms Receipts Pct MA to State (number) ($1,000) Firms Receipts California ...................... 249,717 19,552,637 44 40 Florida ......................... 118,208 16,127,202 65 68 New York ........................ 50,601 4,732,279 77 74 Texas ........................... 155,909 11,796,301 22 22 California ...................... 249,717 19,552,637 9 6 Texas ........................... 155,909 11,796,301 14 14 California ...................... 249,717 19,552,637 8 8 California ...................... 249,717 19,552,637 8 8 Illinois ........................ 18,368 1,950,685 91 92 Texas ........................... 155,909 11,796,301 9 13 Table G. Comparison of Hispanic-Owned Firms in 10 Largest Counties With Hispanic-Owned Firms in State: 1992 MSA Firms Receipts (number) ($1,000) Los Angeles, CA ................. 109,104 7,844,099 Dade, FL ........................ 77,300 10,949,254 Harris, TX ...................... 30,987 2,509,079 Bexar, TX ....................... 20,093 1,622,048 Orange, CA ...................... 19,270 1,614,885 San Diego, CA.................... 18,983 1,507,329 El Paso, TX ..................... 13,131 976,032 Cook, IL ........................ 12,943 1,404,697 Dallas, TX ...................... 12,398 1,415,288 Queens, NY ...................... 12,217 696,670 State Firms Receipts Pct cnty to State (number) ($1,000) Firms Receipts California ...................... 249,717 19,552,637 44 40 Florida ......................... 118,208 16,127,202 65 68 Texas ........................... 155,909 11,796,301 20 21 Texas ........................... 155,909 11,796,301 13 14 California ...................... 249,717 19,552,637 8 8 California ...................... 249,717 19,552,637 8 8 Texas ........................... 155,909 11,796,301 8 8 Illinois ........................ 18,368 1,950,685 70 72 Texas ........................... 155,909 11,796,301 8 12 New York ........................ 50,601 4,732,279 24 15 Table H. Comparison of Hispanic-Owned Firms in 10 Largest Cities With Hispanic-Owned Firms in State: 1992 MSA Firms Receipts (number) ($1,000) Los Angeles, CA ................. 47,673 2,874,019 New York, NY .................... 34,495 3,082,038 Houston, TX ..................... 22,657 1,893,943 Miami, FL ....................... 20,267 2,985,678 San Antonio, TX.................. 17,081 1,495,414 El Paso, TX ..................... 11,714 919,709 Hialeah, FL ..................... 10,181 1,136,213 Chicago, IL ..................... 8,732 825,647 San Diego, CA ................... 8,232 664,054 Dallas, TX ...................... 7,742 1,172,496 State Firms Receipts Pct city to State (number) ($1,000) Firms Receipts California ...................... 249,717 19,552,637 19 15 New York ........................ 50,601 4,732,279 68 65 Texas ........................... 155,909 11,796,301 15 16 Florida ......................... 118,208 16,127,202 17 19 Texas ........................... 155,909 11,796,301 11 13 Texas ........................... 155,909 11,796,301 8 8 Florida ......................... 118,208 16,127,202 9 7 Illinois ........................ 18,368 1,950,685 48 42 California ...................... 249,717 19,552,637 3 3 Texas ........................... 155,909 11,796,301 5 10 =>LEGAL FORM OF ORGANIZATION The majority of Hispanic-owned firms operated as individual proprietorships in 1992 (689,015 or 89.3 percent, down from 93.9 percent in 1987). This group accounted for 35.3 percent of gross receipts compared to 61.3 percent in 1987. Of the total number of firms, 50,042 or 6.5 percent were subchapter S corporations, accounting for 48.4 per-cent of the gross receipts. This is up from 3.2 percent of the firms and 29.4 percent of the gross receipts in 1987. Partnerships accounted for only 4.2 percent of the total number of firms and 16.4 percent of gross receipts. They accounted for 2.9 percent of the Hispanic-owned firms and 9.3 percent of gross receipts in 1987. Table D. Percent Increase by Legal Form of Organization for Hispanic-Owned Firms Compared to All U.S. Firms: 1987 to 1992 Percent increase Legal form of organization Hispanic- All U.S. owned firms firms Individual proprietorships. 73.7 20.4 Partnerships............... 167.0 65.1 Subchapter S corporations.. 274.2 71.6 =>SIZE OF FIRM Hispanic-owned firms with paid employees accounted for 15 percent of the total number of firms and 78.5 percent of gross receipts. There were 676 firms with 100 employ-ees or more. They accounted for $10.7 billion in gross receipts. Hispanic-owned firms with gross receipts of $1 million or more accounted for 51.7 percent of the total gross receipts but only 1.2 percent of the total number of firms. Forty-seven percent of the firms had receipts of less than $10 thousand. =>HISPANIC-OWNED FIRMS COMPARED TO ALL U.S. FIRMS Hispanic-owned firms accounted for 4.5 percent of all firms in the United States and 2.2 percent of gross receipts. They accounted for 4 or more percent of the firms in only eleven States (see table E). The largest share of firms owned by Hispanics was in New Mexico with 20.1 percent of all firms and 12.6 percent of all receipts. The smallest share owned by Hispanic firms was in North Dakota with 0.2 percent of all firms and 0.2 percent of all receipts. In general, States with the largest Hispanic populations had the largest percentage of Hispanic-owned firms. Average receipts for Hispanic-owned businesses were $94,000 compared to $193,000 for all U.S. firms. Average receipts for Hispanic-owned firms were most comparable to all U.S. firms in the service industries with $48,000, or 57 percent of the $85,000 average receipts for all firms. They were least comparable in manufacturing, with $334,000 or 38 percent of the $873,000 average receipts of all firms. ###