Growth of Minority Women-Owned Firms Skyrockets
Businesses owned by women of color are growing three times faster than all U.S. firms, according to a new report from the Center for Women's Business Research.
"Businesses Owned by Women of Color in the United States 2008" found that firms owned by African American, Asian and Hispanic women business owners "substantially outpace" all U.S. firms in terms of revenue growth and number of employees.
"The face of women entrepreneurship is changing," said center Chairwoman Margaret Smith. "Today, women of color represent 26 percent of all women business owners - up from 20 percent just a few years ago. These business owners are a vital driver of economic growth in every community and a vibrant source of suppliers and customers."
There are 2.3 million firms that are 50 percent or more owned by women of color, providing 1.7 million jobs and generating $235 billion in revenues, according to the new data.
Between 2002 and 2008, the number of privately-held firms in which women of color had at least a 50 percent stake grew 30 percent while all other businesses grew 9 percent. Revenues for these businesses grew 35 percent compared to 15 percent for all other firms and employment grew 22 percent compared to 2 percent for all firms, according to the center.
Among women of color, Latinas have the largest number of businesses - owning an estimated 747,108 firms, employing 430,000 workers and generating revenues of nearly $62 billion as of 2008. Firms owned by Asian-American women outpaced all other firms in growth in numbers, employment and receipts. Asian-American women own the third largest number of firms (627,837), employ 898,240 people and have revenues of $128 billion. African-American women own the second highest number of firms (734,664), employ 281,055 people, and have revenues of more than $32 billion.
The entire report is available for a fee. It was underwritten by Wells Fargo & Co.
By Sharon McLoone |
November 21, 2008; 4:45 PM ET
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