SUMMMARY OF FINDINGS_______________________MINORITY-/WOMEN-OWNED BUSINESSES =>TOTAL MINORITY-OWNED BUSINESSS TOTAL MINORITY-OWNED BUSINESSS (Summary, including gender) All of the following data are based only on the 1,965,565 minority-owned businesses for which cross tabulations could be made. They do not include the 183,619 firms discussed in the previous section for which detailed estimates are not available. Minority-owned firms increased 62 percent from 1,213,750 in 1987 to 1,965,565 in 1992. Receipts increased by 160 percent from $77.8 billion to $202.0 billion. Table A provides summary totals for 1987 and 1992 by minority group. Figure 1 shows the distribution of firms and receipts by minority group. 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 $500 or more. Black women owned the largest share (39 percent) of firms owned by minority women. Hispanic men owned the largest share (42 percent) of firms owned by minority men. Asians and Pacific Islanders, American Indians, and Alaska Natives had the largest share of receipts for both minority men and women. Table B shows each minority group by gender. Table A. Comparison of Business Ownership by Minority Group: 1992 and 1987 Firms (number) Sales & receipts ($mil.) Minority 1992 1987 %chg 1992 1987 %chg All minorities. 1,965,565 1,213,750 61.9 202,011 77,840 160.0 Black............ 620,912 424,165 46.4 32,197 19,763 62.9 Hispanic......... 771,708 422,373 82.7 72,824 24,732 194.5 API/AIAN......... 606,426 376,711 61.0 99,710 34,036 193.0 Note: Detail in this table does not add to total because of duplication of some firms. Firms that were owned equally by two or more minorities are included in the data for each minority group but counted only once at total levels. Table B. Minority-Owned Firms by Gender: 1992 % of all minority-owned firms by gender ----------------------------- Sales & Sales & Firms receipts Firms receipts Minority (number) ($mil.) (number) ($mil.) All minority firms. 1,965,565 202,011 100.0 100.0 Men.............. 1,248,130 152,245 100.0 100.0 Black................ 343,666 23,688 27.5 15.5 Hispanic............. 525,330 55,645 42.1 36.5 API/AIAN............. 397,779 74,856 31.9 49.2 Women............ 717,435 49,767 100.0 100.0 Black................ 277,246 8,510 38.6 17.1 Hispanic............. 246,378 17,180 34.3 34.5 API/AIAN............. 208,647 24,853 29.1 49.9 Note: Detail in this table does not add to total because of duplication of some firms. Firms that were owned equally by two or more minorities are included in the data for each minority group but counted only once at total levels. COMPARISON TO ALL U.S. FIRMS Comparable data for all businesses showed 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. Minority-owned firms accounted for 11 percent of the total number of all individual proprietorships, partnerships, and subchapter S corporations in the United States and 6 percent of their gross receipts. Average receipts per firm varied depending upon race, Hispanic origin, and gender. Firms owned by nonminority men had the highest average receipts with $250,000, followed by firms owned by Asian, Pacific Islander, American Indian, and Alaska Native men with $188,000. Firms owned by Black women had the lowest average receipts with $31,000. Figure 2 shows average receipts per firm by race, Hispanic origin, and gender. Of the major industry sectors, minorities owned the largest share of firms in transportation, communications, and utilities industries, with 17 percent of all firms. They owned the smallest share of firms in mining industries, with 2 percent of all firms. Table C compares the distribution of minority-owned firms with all U.S. firms by industry. Minority-owned firms accounted for the largest share of firms in Hawaii with 52 percent of all firms and 46 percent of all receipts. The next largest share of firms was in the District of Columbia with 36 percent of all firms and 10 percent of all receipts. As might be expected, these areas also had the largest percentage of minority population. Table D shows the 10 States with the largest share of minority-owned firms compared to All U.S. firms and population. INDUSTRY CHARACTERISTICS Forty-eight percent of minority-owned firms were in the service industry and they accounted for 26 percent of gross receipts in that industry. Nearly half of these service firms provided business and personal services. The retail trade industry accounted for 16 percent of the minority-owned firms and 26 percent of the receipts. The service industry accounted for 58 percent of the firms and 30 percent of the receipts for minority women but only 42 percent of the firms and 25 percent of the receipts for minority men. Construction firms accounted for 12 percent of the firms owned by minority men but only 2 percent of the firms owned by minority women. Table E shows the 10 industry groups with the greatest receipts by gender for minority-owned firms. Figure 4 shows the distribution of firms by industry for each minority group. Table C. Comparison of Minority-Owned Firms With All U.S. Firms by Industry: 1992 All Minority Minority as a Industry firms firms Percent of all (number) (number) U.S. firms All industries............... 17,253,143 1,965,565 11.4 Agr services, forestry &fishing 432,885 54,920 12.7 Mining......................... 150,368 2,824 1.9 Construction................... 1,829,620 166,411 9.1 Manufacturing.................. 517,714 47,240 9.1 Transport, communication & util 698,903 118,910 17.0 Wholesale trade................ 538,339 44,841 8.3 Retail trade................... 2,478,045 322,001 13.0 Finance, insurance &real estate 1,941,029 152,096 7.8 Services....................... 7,784,016 937,676 12.0 Industries not classified...... 882,224 118,645 13.4 All Minority sales & sales & Minority as a Industry receipts receipts Percent of all ($mil.) ($mil.) U.S. firms All industries................ 3,324,200 202,011 6.1 Agr services, forestry &fishing 29,665 2,527 8.5 Mining......................... 32,661 835 2.6 Construction................... 307,123 15,792 5.1 Manufacturing.................. 451,719 15,704 3.5 Transport, communication & util 130,033 8,321 6.4 Wholesale trade................ 641,051 33,385 5.2 Retail trade................... 722,713 52,562 7.3 Finance, insurance &real estate 322,251 17,310 5.4 Services....................... 661,284 52,762 8.0 Industries not classified...... 25,699 2,813 10.9 GEOGRAPHIC CHARACTERISTICS California had the largest number of firms (541,414) and receipts $61.8 billion, accounting for 28 percent of all minority-owned firms and 31 percent of their receipts. Texas had the second largest number of firms (241,334) but ranked third in receipts with $19.7 billion, accounting for 12.3 percent of all minority-owned firms but only 10 percent of their receipts. Florida was third in number of firms (173,287) but was second in receipts with $21.2 billion. Florida accounted for 9 percent of all minority-owned firms but 10 percent of their receipts. Table F shows the 10 metropolitan areas (MA's) with the largest number of minority-owned firms and compares the firms and receipts in these MA's with the number in their respective States. These 10 MA's accounted for 41 percent of the total number of minority-owned firms in the United States and 45 percent of their receipts. Table D. Ten States With Largest Share of Minority-Owned Firms Compared to All U.S. Firms and Population: 1992 Minority- All Minority State owned U.S. as a firms firms percent (num) (num) of all Hawaii............ 41,111 79,050 52.0 Dist of Columbia.. 12,669 35,344 35.8 New Mexico........ 26,729 107,377 24.9 California........541,414 2,259,327 24.0 Texas.............241,334 1,256,121 19.2 Florida...........173,287 1,000,542 17.3 Maryland.......... 55,587 328,403 16.9 New York.......... 60,751 1,159,700 13.9 Louisiana......... 29,784 236,589 12.6 New Jersey........ 64,074 517,204 12.4 Minority- All U.S. Minority State sales & sales & as a receipts receipts percent ($mil.) ($mil.) of all Hawaii............ 4,929 10,724 46.0 Dist of Columbia.. 1,066 11,061 9.6 New Mexico........ 1,741 11,751 14.8 California........ 61,815 408,481 15.1 Texas............. 19,650 229,833 8.5 Florida........... 21,189 172,499 12.2 Maryland.......... 3,350 57,909 5.8 New York.......... 17,637 327,619 5.4 Louisiana......... 2,037 34,217 6.0 New Jersey........ 8,394 141,761 5.9 - 1992 population - All Minority State Minority- U.S. as a pop. pop. percent (1,000) (1,000) of all Hawaii............ 804 1,156 69.6 Dist of Columbia.. 426 585 72.8 New Mexico........ 792 1,582 50.0 California........ 13,783 30,895 10.5 Texas............. 7,154 17,683 40.5 Florida........... 3,753 13,483 27.8 Maryland.......... 1,552 4,917 31.6 New York.......... 5,767 18,110 31.9 Louisiana......... 1,487 4,279 34.8 New Jersey........ 2,135 7,820 27.3 Source of population data: U.S. Department of Commerce. Table E. Ten Largest Major Industry Groups in Receipts of Minority-Owned Firms by Gender: 1992 Firms owned by minority men: Sales & SIC Industry Firms Receipts (number) ($1,000) 51 Wholesale trade-nondur goods. 13,314 13,024,275 80 Health services.............. 63,317 11,443,460 50 Wholesale trade-durable goods 16,963 11,415,477 55 Automobile dealers & sv stat. 14,229 10,655,153 65 Real estate.................. 61,699 9,326,427 54 Food stores.................. 31,071 8,772,114 58 Eating and drinking places... 47,904 8,360,118 59 Miscellaneous retail......... 67,377 7,361,115 73 Business services............ 142,742 7,209,851 17 Special trade contractors.... 124,958 6,435,226 Firms owned by minority women: Sales & SIC Industry Firms Receipts (number) ($1,000) 50 Wholesale trade-durable goods 8,267 4,829,715 80 Health services.............. 59,198 4,145,681 51 Wholesale trade-nondur goods. 6,297 4,115,770 58 Eating and drinking places... 26,002 3,735,892 59 Miscellaneous retail......... 75,122 3,182,722 65 Real estate.................. 40,031 3,020,387 73 Business services............ 101,204 2,768,267 54 Food stores.................. 12,993 2,464,226 72 Personal services............ 107,297 2,340,680 55 Automobile dealers & sv stat. 2,421 1,926,471 Table F. Comparison of 10 Metropolitan Areas with the Largest Number of Minority-Owned Firms in State: 1992 [For definition of MA's, see appendix B] MSA Firms Receipts (number) ($mil.) Los Angeles-Long Beach, CA PMSA.. 230,025 27,919 New York, NY PMSA................ 125,350 12,733 Miami, FL PMSA................... 89,372 12,172 Washington, DC--MD--VA-WV MSA... 68,918 4,989 Houston, TX PMSA................. 66,724 6,027 Chicago, IL PMSA................. 60,158 8,107 Orange County, CA PMSA........... 47,940 5,763 San Francisco, CA PMSA........... 39,647 5,501 Oakland, CA MSA.................. 39,605 4,385 Riverside-San Bernardino, CA PMSA 35,903 2,483 State Firms Receipts Pct MA to State (number) ($mil.) Firms Receipts California....................... 541,414 61,815 42 45 New York......................... 160,751 17,637 78 72 Florida.......................... 173,287 21,189 52 57 District of Columbia............. (X) (X) (x) (x) Texas............................ 241,334 19,650 28 31 Illinois......................... 67,603 8,762 89 93 California....................... 541,414 61,815 9 9 California....................... 541,414 61,815 7 9 California....................... 541,414 61,815 7 7 California....................... 541,414 61,815 7 4 Table G. Comparison of 10 Counties with the Largest Number of Minority-Owned Firms in State: 1992 MSA Firms Receipts (number) ($mil.) Los Angeles, CA.................. 230,025 27,919 Dade, FL......................... 89,372 12,172 Harris, TX....................... 60,170 5,560 Cook, IL......................... 49,047 6,340 Orange, CA....................... 47,940 5,763 Queens, NY....................... 40,815 2,718 San Diego, CA.................... 34,088 3,143 Honolulu, HI..................... 31,692 4,078 Santa Clara, CA.................. 31,218 3,495 Dallas, TX....................... 30,144 3,327 State Firms Receipts Pct cnty to State (number) ($mil.) Firms Receipts California....................... 541,414 61,815 42 45 Florida.......................... 173,287 21,189 52 57 Texas............................ 241,334 19,650 25 28 Illinois......................... 67,603 8,762 73 72 California....................... 541,414 61,815 9 9 York............................. 160,751 17,637 25 15 California....................... 541,414 61,815 6 5 Hawaii........................... 41,111 4,929 77 83 California....................... 541,414 61,815 6 6 Texas............................ 241,334 19,650 12 17 Table H. Comparison of 10 Cities with the Largest Number of Minority-Owned Firms in State: 1992 MSA Firms Receipts (number) ($mil.) New York, NY..................... 112,815 11,156 Los Angeles, CA.................. 95,049 11,791 Houston, TX...................... 45,826 4,290 Chicago, IL...................... 31,591 3,444 Miami, FL........................ 22,642 3,225 San Francisco, CA................ 22,015 3,336 Honolulu, HI..................... 19,431 3,344 San Antonio, TX.................. 19,410 1,676 Dallas, TX....................... 17,964 2,133 San Diego, CA.................... 17,534 1,692 State Firms Receipts Pct city to State (number) ($mil.) Firms Receipts New York......................... 160,751 17,637 70 63 California....................... 541,414 61,815 18 19 Texas............................ 241,334 19,650 19 22 Illinois......................... 67,603 8,762 47 39 Florida.......................... 173,287 21,189 13 15 California....................... 541,414 61,815 4 5 Hawaii........................... 41,111 4,929 47 68 Texas............................ 241,334 19,650 8 9 Texas............................ 241,334 19,650 7 11 California....................... 541,414 61,815 3 3 LEGAL FORM OF ORGANIZATION The majority of minority-owned firms operated as individual proprietorships in 1992 (1,746,027 or 89 percent, down from 93 percent in 1987). This group accounted for 38 percent of gross receipts compared to 59 percent in 1987. Of the total number of firms, 125,155 or 6.4 percent were subchapter S corporations, accounting for 43 percent of gross receipts. This is up from 3.5 percent of the firms and 30 percent of the gross receipts in 1987. Partnerships accounted for only 4.8 percent of the total number of firms and 19 percent of the gross receipts. They accounted for 3.5 percent of the minority-owned firms and 11 percent of the gross receipts in 1987. Table I. Minority-Owned Firms by Legal Form of Organization: 1992 Minority-owned firms Firms Receipts Legal form of organization (thous.) ($bill.) All industries........... 1,966 202.0 Individual proprietorships. 1,746 76.1 Partnerships............... 94 39.1 Subchapter S corporations.. 125 86.8 Table J. All U.S. Firms by Legal Form of Organization:1992 All U.S. firms Firms Receipts Legal form of organization (thous.) ($bill.) All industries............. 17,253 3324.3 Individual proprietorships. 14,599 721.6 Partnerships............... 1,090 665.0 Subchapter S corporations.. 1,564 1937.7 SIZE OF FIRM Minority-owned firms with paid employees accounted for 16 percent of the total number of firms and 79 percent of gross receipts. There were 1,690 firms with 100 employees or more. They accounted for $33.8 billion in gross receipts. Minority-owned firms with gross receipts of $1 million or more accounted for 52 percent of the total gross receipts but only 1.2 percent of the total number of firms. Forty-six percent of the firms had receipts of less than $10 thousand. ###