Note: Today, the Census Bureau released the latest preliminary data on Hispanic and other minority/women-owned businesses from their 2007 Survey of Business Owners (SBO). This survey is conducted every 5 years, with the last one done in 2002. Below is a summary.
---Angelo Falcón
Survey of Business Owners -
US Census Bureau (July 13, 2010)
Summary of Findings
Hispanics owned 2.3 million nonfarm U.S. businesses in 2007, an increase of 43.6 percent from 2002. In 2007, Hispanic-owned firms accounted for 8.3 percent of all nonfarm businesses in the United States, 1.6 percent of total employment and 1.1 percent of total receipts.
The 2007 Survey of Business Owners (SBO) defines Hispanic-owned businesses as firms in which Mexicans, Mexican Americans, Chicanos, Puerto Ricans, Cubans, and Other Spanish, Hispanics, or Latinos own 51 percent or more of the stock or equity of the business. The 2007 SBO data were collected as part of the 2007 Economic Census from a sample of more than 2.3 million nonfarm businesses filing 2007 tax forms as individual proprietorships, partnerships, or any type of corporation, and with receipts of $1,000 or more.
Kind-of-Business Characteristics
In 2007, 30.0 percent of Hispanic-owned firms operated in the construction industry (NAICS 23) and the repair, maintenance, personal, and laundry services industries (NAICS 81). Chart A [PDF, 168K] shows the distribution of firms according to sector. Hispanic-owned firms accounted for 10.4 percent of all U.S. businesses in these industries. Wholesale trade (NAICS 42), retail trade (NAICS 44-45) and construction (NAICS 23) accounted for 50.7 percent of Hispanic-owned business revenue.
Geographic Characteristics
California had the most Hispanic-owned firms at 566,436 (25.1 percent of all such firms), with receipts of $80.8 billion (23.4 percent of all Hispanic-owned firm receipts). Florida had 450,075 Hispanic-owned firms or 19.9 percent, with receipts of $72.9 billion or 21.1 percent. Texas had 447,391 Hispanic-owned firms or 19.8 percent, with receipts of $62.1 billion or 18.0 percent. Map A [PDF, 172K] shows the percent change in the number of Hispanic-owned firms by state. Also see Table of Percent Changes by State [xls, 33K]
Employer Characteristics
In 2007, there were 249,044 Hispanic-owned employer firms. These firms employed 1.9 million persons with a total payroll of $54.7 billion, an increase of 26.0 percent and 49.0 percent respectively from 2002. In 2007, these firms generated $274.6 billion in receipts, an increase of 53.0 percent. Employer firms accounted for 11.0 percent of the total number of Hispanic-owned firms and 79.5 percent of Hispanic-owned firms' gross receipts. The average receipts for these employer firms was $1.1 million.
Nonemployer Characteristics
In 2007, there were 2.0 million Hispanic-owned firms without paid employees. ( Pie Chart of Employer Status [pdf, 166K]) These firms generated $70.6 billion in receipts, an increase of 66.5 percent from 2002. In 2007, nonemployers accounted for 89.0 percent of the total number of Hispanic-owned firms and 20.5 percent of gross receipts. The average receipts for these nonemployer firms was $35,116.
Data Comparability To Prior Surveys
The 2007 and 2002 SBO data were published according to the 2007 and 2002 North American Industry Classification System (NAICS) respectively. Prior to the 2002 SBO, data were published according to the Standard Industrial Classification (SIC) system. Additional changes affecting data comparability are discussed in detail in Methodology, in the section titled "Comparability of the 2007 and 2002 SBO Data."
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