Minority-Owned Businesses on the Rise: SBA
While businesses owned by minorities make up a small share of all businesses in the United States, their numbers have been on the rise.
According to the SBA Office of Advocacy, the rate of minority business ownership in 2012 was 14.6%, compared with 11.5% in 2007.
Black business owners made up 49.9% of all minority owners in 2012, while Asians made up 29.6% The Hispanic share of all U.S. business owners was 10.3% that year, compared with 8.3% in 2007. This increase reflects the fast growth of the Hispanic labor force, spurred by overall population growth and increased immigration, the SBA said.
Meanwhile, women-owned businesses had virtually no change in market share between 2007 and 2012, the agency noted. In 2012, 36.0% of business owners were women, similar to their 2007 share of 35.9%.
The SBA found that business owners tended to be older than non-business owners. In 2012, the age makeup of business owners was shifting toward the older age groups. Between 2007 and 2012, those 50 and over had an increase from 46% to 50.9%.
The proportion of owners age 35 to 49 decreased from 38.8% to 33.2%, according to the SBA.
“This may reflect the unprecedented withdrawal of prime age workers from the labor market – a cyclical condition which could reverse as the labor market recovery solidifies. The share of younger business owners is holding steady,” the SBA said.
In 2012, 15.9% of business owners were under age 35, a slight increase from 15.2% in 2007.
Regarding business ownership, the SBA said entrepreneurs were more likely to have attended college, be homeowners, married and lived in metropolitan areas.