U.S. Census Bureau Survey of Business Owners Preliminary Estimates of Business Ownership by Gender, Ethnicity, Race, and Veteran Status: 2007 Census Bureau Economic Data Released on July 13, 2010

2 July 13, 2010 Presenters HostStanley J. Rolark Chief, Public Information Office U.S. Census Bureau Survey findingsThomas L. Mesenbourg, Jr. Deputy Director and Chief Operating Officer U.S. Census Bureau UsesDavid Hinson National Director Minority Business Development Agency

3 July 13, 2010 Part of the Economic Census required by law to be taken every 5 years for years ending in “2” and “7” The only comprehensive, regularly collected data for businesses and business owners by  Gender  Minority status  Race  Ethnicity (Hispanic origin of any race)  Veteran status About the Survey

4 July 13, 2010 Which Businesses Are Included Includes all nonfarm firms operating during the Economic Census year with receipts of $1,000 or more that filed tax forms as:  Individual proprietorships  Partnerships  Any type of corporation Firms classified by kind of business using the North American Industry Classification System (NAICS)

5 July 13, 2010 Business Ownership Categories of ownership are based on the characteristics of individuals who own 51% or more of stock or equity in the business. “Minority-owned” defined as any firm with Black or African American, American Indian and Alaska Native, Asian, Native Hawaiian and Other Pacific Islander, or Hispanic owners holding a 51% or larger stake in the business.

6 July 13, 2010 Categories of Business Ownership Race - Minority-owned, Equally minority-/nonminority- owned, Nonminority-owned - White - Black - American Indian and Alaska Native (AIAN) - Asian - Native Hawaiian and Other Pacific Islander (NHPI) - Some other race

7 July 13, 2010 Categories of Business Ownership (cont.) Ethnicity - Hispanic, Equally Hispanic/non-Hispanic, Non-Hispanic Gender - Women-owned, Men-owned, Equally men-/ women-owned Veteran Status - Veteran-owned, Equally veteran-/nonveteran- owned, Nonveteran-owned

8 July 13, 2010 A Look at the 2007 SBO Preliminary Estimates

9 July 13, 2010 Overview Firms in 2007 (number) Sales and receipts in 2007 ($ billions) All U.S. firms 1 27,110,36230,181 Employer firms5,752,97529,209 Nonemployer firms21,357, Includes firms with paid employees and firms with no paid employees. Note: Detail does not add to total because of rounding.

10 July 13, 2010 Growth in Minority Business Ownership: 2002 to 2007 Firms in 2007 (number) Sales and receipts in 2007 ($ billions ) Firms (% change, ) Sales and receipts (% change, ) All U.S. firms27,110,36230, Minority5,762,9401, Black1,921, Asian1,552, NHPI38, AIAN237, Hispanic2,259, Note: Detail may not add to total because a Hispanic firm may be of any race. Moreover, each owner had the option of selecting more than one race and therefore is included with each race selected.

11 July 13, 2010 Growth in Business Ownership by Gender and Veteran Status: 2002 to 2007 Firms in 2007 (number) Sales and receipts in 2007 ($ billions) Firms (% change, ) Sales and receipts (% change, ) All U.S. firms27,110,36230, Gender Women (W)7,793,4251, Men (M)13,910,6348, Equal (W,M)4,602,3121, Veteran Status Veteran2,449,4771,233xx Note: Firms by gender do not add to total because the number of publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status has not been provided in this table. The 2007 SBO provides the first-ever estimates for all veteran-owned businesses in the United States.

12 July 13, 2010 States With the Largest Percentage Growth in Minority-Owned Firms: 2002 to 2007 StateFirms in 2007% change, Georgia263,43991 Nevada45,58887 Alabama70,55685 Note: Firms with more than one domestic establishment are counted in each geographic area and industry in which they operate, but only once in the U.S. and state totals for all sectors. States With the Largest Number of Minority-Owned Firms: 2007 StateFirms in 2007% of all State firms California1,221,04036 Texas723,16233 Florida680,26334

13 July 13, 2010 Industries Accounting for the Largest Receipts for Minority-Owned Firms: 2007 Business sector Sales and receipts ($ billions) Wholesale trade217 Retail trade185 Construction96 Health care & social assistance85 Professional, scientific, & technical services 82 Note: Firms with more than one domestic establishment are counted in each geographic area and industry in which they operate, but only once in the U.S. and state totals for all sectors.

14 July 13, 2010 Accessing SBO Results Released on a flow basis -SBO Web site:  For access to prepackaged data products and the ability to build custom tables, visit American FactFinder (AFF), the Census Bureau’s online, self-service data access tool at

15 July 13, 2010 DataRelease date Preliminary Company Summary - Estimates of Business Ownership by Gender, Ethnicity, Race, and Veteran Status (PRELIM) July 13, 2010 Series of nine releases with additional information by geographic sublevels, detailed industry, size of firm, Hispanic subgroups, and detailed Asian and NHPI groups, plus business and owner characteristics data September 2010 through June 2011 SBO Release Schedule

Number of Minority- Owned Businesses Grows but Economic Parity Remains Elusive U.S. Department of Commerce Minority Business Development Agency David Hinson, National Director

17 The Big Picture MBDA is encouraged that the minority business community has grown at a faster rate than the minority population and all U.S. firms, yet economic parity remains elusive for the minority business community. The minority population age 18 and older grew by 13.7 percent between 2002 and 2007, and all U.S firms increased in number by 18 percent, minority firms once again outpaced this growth by increasing in number of firms by 46 percent over the same period. Over a decade, minority-owned firms nearly doubled from 3 million in 1997 to 5.8 million in Success in the minority business community leads to job creation, an expanded tax base, community benefits and global competitiveness. Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.7 million in 2002.

18 Growth of Minority-Owned Firms

19 The Downside While we have increasingly more minority-owned firms in number, they are still smaller in size, scale and capacity than non-minority-owned firms. In 2007, average gross receipts for minority-owned firms increased to $179,000 from $167,000 in 2002 but still remain lower than non-minority-owned firms which had average gross receipts of $490,000. As the minority population explodes in the U.S., the prosperity of the minority business community becomes more critical. Without viable minority businesses, economic dependency and reliance on government services will skyrocket, unemployment will jump, innovation will stall and we risk our place as leaders in the broader global business community. This data precedes the economic downturn of 2008 which may have impacted minority-owned firms disproportionately. MBDA supports efforts to increasing access to capital for minority-owned firms to help avoid bankruptcies and failure.

20 Average Gross Receipts, 2007 Minority FirmsNon-Minority Firms $179,000$490,000 Minority-Owned Firms Gross Receipts

21 The Future MBDA is committed to making sure the growth and competitiveness of the minority business community continues to be a national priority. MBDA is creating the foundation for the next generation of $100 million minority-owned firms capable of employing the growing minority population, expanding our tax base and securing our position as a global leader. Last year, MBDA assisted minority owned firms in accessing nearly $3 billion in contracts and financings, creating more than 3,000 jobs. To grow more minority-owned firms to size and capacity, MBDA encourages minority businesses to consider growth by mergers and acquisition, joint ventures and strategic partnerships.

22 Strategic Priorities: Access to Capital – MBDA will develop global financing solutions for minority business enterprises such as: Developing unique public-private partnerships to create funding vehicles for MBEs Expanding the number of financing options Increasing surety bonding opportunities Access to Contracts – MBDA will create openness and transparency in minority business government contract reporting Access to Markets – MBDA will support the National Export Initiative to double exports over the next 5 years. Minority businesses are already twice as likely to export compared to non-minority-owned firms. MBDA will foster innovation and entrepreneurship within minority communities in high- growth industries such as: Clean and Renewable Energy Green Technology Healthcare Information Technology MBDA’s New Strategic Focus Increase Size, Scale and Capacity of Minority Business Enterprises

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July 13, 2010 Contact Information U.S. Census Bureau Public Information Office Phone: Minority Business Development Agency Public Affairs Office Phone: