Posted at 7:00 PM
The number of African American owned firms increased by 61 percent between 2002 and 2007 to 1.9 million firms, according to data from the U.S. Census Bureau’s 2007 Survey of Business Owners. Employment at these firms grew 22 percent from 754,000 to 921,000 workers, a significantly higher rate than that of non-minority-owned firms which grew employment less than one percent.
“We are encouraged by the overall growth of the minority business community, including African-American-owned businesses, but we have a lot of work to do, especially to increase gross receipts,” said David A. Hinson, National Director at MBDA. “Reaching entrepreneurial parity in size, scope and capacity is our primary goal.”
While minority-owned firms are experiencing substantial growth, African-American-owned businesses still only represent 7 percent of all classifiable firms, but 12 percent of the adult population. In 2007, average gross receipts for African-American-owned firms actually decreased by 3 percent from $74,000 per firm in 2002 to $72,000 in 2007. Gross receipts for all minority-owned firms are still well below the average gross receipts for non-minority-owned firms which averaged gross receipts of $490,000.