Minority Women-Owned Firms Show Most Growth Among All U.S. Businesses
As seen in Target Market News
According to recent data released by the Minority Business Development Agency (MBDA), minority women are establishing their own businesses nearly twice as fast as male minority entrepreneurs and more than four times non-minority men and women. Between 1997 and 2002, the growth in number of minority women-owned firms was 57 percent, compared to 31 percent for minority male-owned firms.
Minority-owned firms play a critical role in generating jobs, creating wealth and introducing innovative products and services in local communities. Nearly 1.5 million minority women-owned firms generated approximately $111 billion in gross receipts in 2002. All women-owned businesses only grew 20 percent during the same time period and male-owned firms grew only 16 percent.
Out of the 57 percent growth for minority women-owned businesses, Native Hawaiian and other Pacific Islander women-owned businesses grew the most at 84 percent; African-American women-owned firms grew at the second fastest rate of 75 percent; Hispanic women-owned businesses grew 60 percent; and Asian women-owned businesses grew at a rate of 40 percent. "Women see entrepreneurship as the key to freedom -- providing flexibility and wealth creation," said Ronald N. Langston, MBDA's National Director. "Women are taking advantage of their talents and experience establishing businesses throughout our communities at astounding rates. Many choose entrepreneurship as a way to battle the glass ceiling that still, unfortunately, exists in corporate America."
Though minority women-owned businesses are expanding more rapidly than other businesses, they still have not reached parity based on the population and they lag behind minority male-owned firms in gross receipts. Currently, only Asian male-owned businesses have reached parity in number of businesses, gross receipts and employees. "
Providing resources and support for minority women-owned businesses is important to the nation's economy. Finding better ways to access capital, increase financial literacy, and using technology to expand business opportunities are the keys to entrepreneurial success," adds Langston.
Minority women-owned businesses span all industries, though the top industries include health care and social services; other services (see below for definition); retail trade; administrative and support, waste management, and remediation services; and professional, scientific and technical services.
[Other Services includes firms not provided for elsewhere in the classification system which are engaged in activities such as equipment and machinery repairing, promoting religious activities, grant-making, advocacy, providing dry-cleaning and laundry services, personal care services and dating services.]
For additional information visit The State of Female African American Business.
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