As the population of the United States has grown more varied, so has company ownership.
According to the Census Bureau’s 2021 Annual Business Survey, there were more Hispanic-owned firms overall and more minority-owned enterprises in several sectors in 2020 than a decade earlier (ABS).
The diversity of business owners reflects the changing demographics of the nation. The population of nearly all racial and ethnic groupings in the United States increased between 2010 and 2020, except for the White population, which decreased during the decade.
About 20%, or 1,2 million, of these employer enterprises, were minority-owned. They had approximately 9.9 million employees and $357.4 billion in annual payroll.
The ABS includes annual business statistics and demographic details of employer enterprises such as owners’ race, ethnicity, sex and veteran status.
America’s Business Ownership
In 2020, there were about 5.8 million U.S. businesses across all industries. They had approximately 129 million employees and an annual payroll of $7.3 trillion.
About 20%, or 1.2 million, of these employer enterprises were minority-owned. They had approximately 9.9 million employees and $357.4 billion in annual payroll.
According to the ABS, several racial and ethnic groups were disproportionately represented in specific industries.
The U.S. Department of Commerce began the Capital Readiness Program grant competition this month, allocating $93.5 million to help underprivileged and minority entrepreneurs start and grow their firms.
This programme, sponsored by the Minority Business Development Agency, is the Commerce Department’s most extensive programme in its entire existence.
Hispanic owned businesses
Hispanic-owned firms increased by 8.2%, from 346,836 in 2019 to 375,256 in 2020, and around 6.5% of all U.S. enterprises in 2020.
In 2020, Hispanic-owned enterprises generated around $472,3 billion in annual revenue and employed approximately 2,9 million individuals.
The industry with the highest concentration of Hispanic-owned businesses was construction.
In 2020, Hispanic-owned businesses outnumbered other minority groups in the following industries: transportation and warehousing, administrative and support services, and waste management and remediation services.
In 2020, there were 0.141 million Black or African-American-owned firms in the United States with yearly sales of $141,1 billion. They employed 1.3 million individuals.
Health Care and Social Assistance had the most firms (38,319), with a majority of Black or African American ownership, accounting for 27.5% of all Black-owned businesses.
These companies employed 468,433 people and paid out $12,2 billion in wages annually.
In 2020, there will be 612,194 Asian-owned companies employing around 5,2 million people in the United States, the biggest number of any minority group.
In 2020, 23.8% of Asian-owned businesses were in the Accommodation and Food Services industry. In this industry, Asian-owned enterprises vastly exceed those held by other minority groups.