The Minority Business Development Agency (MBDA) recently released a fact sheet with preliminary data from the Survey of Business Owners conducted by the U.S. Census Bureau in 2012. The preliminary data shows that minority businesses are leading the country in the areas of business creation, employee growth, and revenue growth.
These promising statistics reinforce the reality that minority businesses matter in the success of the U.S. economy and in the quality of life of America as a whole. This is largely due to the fact that minority populations are the only growing component of the total population of the United States, while the non-minority population actually decreased by 0.5 percent from 2007-2012.
There are three crucial ways that minority businesses matter in America, that make programs and initiatives to assist and accelerate their growth all the more important in the 21st century.
Statistic 1: 7. 7 million jobs created
If there were no other statistics to demonstrate the impact and importance of minority businesses, this information alone would suffice; with minority firms creating 7.7 million jobs for U.S. workers from 2007-2012. In fact, this number is larger than the entire population of 38 states, and would rank just behind Virginia’s total population in terms of sheer numbers. Minority businesses matter because they often lead the way in creating employment opportunities for disadvantaged communities. This, in turn, creates opportunities for individuals to improve their quality of life and the communities where they reside.
Statistic 2: $1.6 trillion in combined revenues
There are nearly 8 million minority-owned businesses in the United States. While the majority of these are small firms with no employees, there are more than 923,000 firms with employees. Collectively, these businesses created $1.6 trillion in revenues from 2007-2012. Minority business revenues are more likely to be recycled throughout the American economy to keep our country thriving. Minority businesses matter because they help recycle dollars in the U.S. economy and add to the multiplier effect achieved when dollars are spent in the community where the dollars were initially earned.
Statistic 3: 53 percent revenue growth
While non-minority firms grew revenues by 27 percent from 2007-2012, minority-owned firms grew by 53 percent during the same time period. Granted, although minority-owned businesses are traditionally smaller than non-minority firms, this growth is still significant. This is especially true given that America was in the midst of a recession from 2007-2009, which adversely affected many businesses. Minority businesses matter because they help add to the innovation and ingenuity of American society by creating new products and services that are capable of accelerated growth in the economy.
While there is still a long way to go to reach parity in the U.S. economy, the statistics published by the MBDA based on the Survey of Business Owners Data is cause for optimism in the minority business community. The statistics show an upward trend for the growth, size, and number of minority-owned businesses operating in the U.S., and that these businesses are having a major impact on the economic success of America.