Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Posts Tagged ‘Census Bureau’

Census Bureau Reports the Number of Black-Owned Businesses Increased at Triple the National Rate

Posted by Hopeton on February 11, 2011

From 2002 to 2007, the number of black-owned businesses increased by 60.5 percent to 1.9 million, more than triple the national rate of 18.0 percent, according to the U.S. Census Bureau’s Survey of Business Owners. Over the same period, receipts generated by black-owned businesses increased 55.1 percent to $137.5 billion.

“Black-owned businesses continued to be one of the fastest growing segments of our economy, showing rapid growth in both the number of businesses and total sales during this time period,” said Census Bureau Deputy Director Thomas Mesenbourg.

These new data come from the Survey of Business Owners: Black-Owned Businesses: 2007. The survey provides detailed information every five years for black-owned businesses, including the number of firms, sales and receipts, number of paid employees and annual payroll.

Data are presented by geographic area (nation, state, county, city and metro area), industry and size of business. Preliminary national and state data were released in July 2010.

In 2007, nearly four in 10 black-owned businesses operated in the health care and social assistance; and repair, maintenance, personal and laundry services sectors. The retail trade and health care and social assistance sectors accounted for 27.4 percent of black-owned business revenue.

Among states, New York had 204,032 black-owned businesses and accounted for 10.6 percent of the nation’s black-owned businesses, followed by Georgia, with 183,874 black-owned businesses (9.6 percent) and Florida, with 181,437 (9.4 percent).

Among counties, Cook, Ill., had the most black-owned businesses, with 83,733, accounting for 4.4 percent of all the nation’s black-owned businesses. Los Angeles followed with 59,680 (3.1 percent) and Kings, N.Y., with 52,705 businesses (2.7 percent).

Among cities, New York had the most black-owned businesses, with 154,929 (8.1 percent of all the nation’s black-owned businesses), followed by Chicago, with 58,631 (3.1 percent), Houston, with 33,062 (1.7 percent) and Detroit, with 32,490 (1.7 percent).

Other highlights:

  • Of the 1.9 million black-owned businesses in 2007, 106,824 had paid employees, an increase of 13.0 percent from 2002. These businesses employed 921,032 people, an increase of 22.2 percent; their payrolls totaled $23.9 billion, an increase of 36.3 percent. Receipts from black-owned employer businesses totaled $98.9 billion, an increase of 50.2 percent from 2002.
  • In 2007, 1.8 million black-owned businesses had no paid employees, an increase of 64.5 percent from 2002. These nonemployer businesses’ receipts totaled $38.6 billion, an increase of 69.0 percent.
  • The number of black-owned businesses with receipts of $1 million or more increased by 35.4 percent to 14,507 between 2002 and 2007.

The Survey of Business Owners defines black-owned businesses as firms in which blacks or African-Americans own 51 percent or more of the equity, interest or stock of the business. Additional reports from the survey highlighting other minority- and veteran-owned businesses will be issued over the next year. Subsequently, separate publications will be issued highlighting additional characteristics of all businesses and their owners.

Posted in African American, Business, minority business | Tagged: | Leave a Comment »

Minority Business Development Agency Official’s Statement on Growth of Texas Hispanic Businesses

Posted by Hopeton on October 28, 2010

Statement by Alejandra Y. Castillo National Deputy Director
Minority Business Development Agency For the U.S.Census Bureau Press Event Releasing 2007 Survey of Business Owner Data
in Dallas, TX – September 21, 2010

I want to thank our hosts for inviting the Minority Business Development Agency, a sister bureau of the Census Bureau, to be a part of today’s important announcement.

Alejandra Castillo

The Minority Business Development Agency is thrilled that the Hispanic business community, and the minority business community as a whole, is showing a significant rate of growth compared to non-minority businesses.

The figures released today show that Texas is a major contributor to the surge in the creation and growth of Hispanic-owned firms nationwide.  You can be proud to be a leader in Hispanic entrepreneurship, job creation, and business prosperity.

However, the numbers also provide us with important insight.  We must be cautious not to let these newly released facts and figures make us complacent.  There is still much work ahead to be done if we are to ensure continued economic progress. .

For example, while there are over 447,000 Hispanic-owned businesses in Texas, less than 10% have paid employees.  Just imagine if the other 90% were to grow and employ just one additional person each, Texas would reap the benefit of an additional 406,000 new jobs.

Or consider this, of all the Texas Hispanic firms, only 8,161 (or less than 2%) have gross receipts of $1 million or more.  But, if there were more firms earning in excess of a million dollars, communities across the State of Texas would reap the benefits of a larger tax base which in turn can contribute to better schools, safer streets, and more economic activity for the State and the Nation.

As the Hispanic population continues to increase in the U.S., the success of the Hispanic business community becomes an integral component to the creation of new and sustainable jobs.

This is precisely MBDA’s goal– to create the right conditions for a new generation of more robust Hispanic, and minority-owned firms.

We understand that we must help minority business enterprises (MBEs), and Hispanic firms in particular, to leverage their cultural ties and business connections both domestically and internationally.

Our goal is to position MBEs to be successful exporters of goods and services to the global market.  For example, through our Global Construction Initiative, MBDA is helping MBEs tap into global infrastructure and real estate development projects underway in the Pacific Islands, the Middle East and in other emerging markets.

Similarly, MBDA is helping to broaden the business horizons of minority owned entrepreneurs and advocating their expansion into emerging industries like solar energy, green construction, medical technologies and IT.

We have to.  It’s critical to the overall health of the U.S. economy and our communities.

And, given the tenacity and competitiveness of Texans, I have no doubt that Hispanic firms and other minority owned firms in Texas will continue to lead the way.

Thank you and I welcome the opportunity to talk with you by phone today, tomorrow or in the near future.  Please contact Ms. Bridget Gonzales, here in the audience, with any questions or requests you may have.

Posted in Hispanics, minority business | Tagged: , , | Leave a Comment »

Interview Available About African American Income and Poverty

Posted by Hopeton on September 24, 2010

I interviewed Ed Welniak, chief of the Income Statistics Branch for the U.S. Census Bureau, about the findings of the Census Bureau’s Income, Poverty, and Health Insurance Coverage in the United States: 2009 for Economic Perspectives.  We discussed the median household income of African Americans and poverty for African Americans and Hispanics.  To listen to this 3 minute interview click here: Ed Welniak Interview.

Posted in African American, Hispanics, Poverty | Tagged: , | Leave a Comment »

Poverty/Income Statistics, Marketing Book, and Urban League Focus of September 20 Economic Perspectives

Posted by Hopeton on September 18, 2010

Jeffrey Richard, president of the Austin Area Urban League, Ed Welniak, chief of the Income Statistics Branch of the U.S. Census Bureau, and Brian Halligan, co-author of Marketing Lesson from the Grateful Dead will be the guests on the September 20 edition of Economic Perspectives, 5:30 p.m. – 6 p.m. on KAZI 88.7 FM.  Listen live online at kazifm.org.

Jeffrey Richard

  • Welniak will provide a summary of the findings of the Census Bureau’s Income, Poverty, and Health Insurance Coverage in the United States: 2009, with a special focus on changes in the median income and poverty for African Americans.
  • Jeffrey Richard will discuss the Austin Urban League’s programs that address poverty and jobs.  He will also provide information on the Urban League’s Equal Opportunity Day Celebration coming on September 24.
  • Halligan, who is CEO of internet marketing company Hubspot will discuss how his new book can help small businesses improve their marketing strategy.  Read Tim Chamberlain’s review of Marketing Lessons of the Grateful Dead by clicking here.

Posted in Books, Business, Poverty | Tagged: , , , , , | Leave a Comment »

Income, Poverty and Health Insurance Coverage in the United States: 2009

Posted by Hopeton on September 18, 2010

The U.S. Census Bureau announced that real median household income in the United States in 2009 was $49,777, not statistically different from the 2008 median.

The nation’s official poverty rate in 2009 was 14.3 percent, up from 13.2 percent in 2008 — the second statistically significant annual increase in the poverty rate since 2004. There were 43.6 million people in poverty in 2009, up from 39.8 million in 2008 — the third consecutive annual increase.

Meanwhile, the number of people without health insurance coverage rose from 46.3 million in 2008 to 50.7 million in 2009, while the percentage increased from 15.4 percent to 16.7 percent over the same period.

These findings are contained in the report Income, Poverty, and Health Insurance Coverage in the United States: 2009. The following results for the nation were compiled from information collected in the 2010 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC):

Income

Race and Hispanic Origin (Race data refer to people reporting a single race only. Hispanics can be of any race.)

  • Among race groups, Asian households had the highest median income in 2009. Real median income declined between 2008 and 2009 for non-Hispanic white and black households, while the changes for Asian and Hispanic-origin households were not statistically different.

Regions

  • In 2009, households in the West and Northeast had the highest median household incomes. (The apparent difference between the two regions was not statistically significant.) Real median income declined between 2008 and 2009 in the Midwest and West; the changes for the Northeast and South were not statistically significant.

Nativity

  • In 2009, households maintained by naturalized citizens had the highest median income. Native-born households and those maintained by noncitizens experienced income declines from 2008 to 2009, in real terms. The changes in the median income of all foreign-born households and households maintained by a naturalized citizen were not statistically significant. (See Table A [PDF].)

Earnings

  • In 2009, the earnings of women who worked full time, year-round were 77 percent of that for corresponding men, not statistically different from the 2008 ratio.
  • The real median earnings of men who worked full time, year-round rose by 2.0 percent between 2008 and 2009, from $46,191 to $47,127. For women, the corresponding increase was 1.9 percent, from $35,609 to $36,278. (The difference between the 2.0 and 1.9 percent increases was not statistically significant.)

Income Inequality

  • The change in income inequality between 2008 and 2009 was not statistically significant, as measured by shares of aggregate household income by quintiles and the Gini index. The Gini index was 0.468 in 2009. (The Gini index is a measure of household income inequality; 0 represents perfect income equality and 1 perfect inequality.)

Poverty

  • The poverty rate in 2009 was the highest since 1994, but was 8.1 percentage points lower than the poverty rate in 1959, the first year for which poverty estimates are available. The number of people in poverty in 2009 is the largest number in the 51 years for which poverty estimates are available.
  • In 2009, the family poverty rate and the number of families in poverty were 11.1 percent and 8.8 million, respectively, up from 10.3 percent and 8.1 million in 2008.
  • The poverty rate and the number in poverty increased across all types of families: married-couple families (5.8 percent and 3.4 million in 2009 from 5.5 percent and 3.3 million in 2008); female-householder-with-no-husband-present families (29.9 percent and 4.4 million in 2009 from 28.7 percent and 4.2 million in 2008) and for male-householder-no-wife-present families (16.9 percent and 942,000 in 2009 from 13.8 percent and 723,000 in 2008).

Posted in Insurance, Poverty | Tagged: , , , | 1 Comment »

Number of Minority-Owned Businesses Increases but Economic Parity Remains Elusive

Posted by Hopeton on July 13, 2010

The U.S. Commerce Department’s Minority Business Development Agency (MBDA) and the U.S. Census Bureau today announced that the number of minority-owned firms increased by 46 percent to 5.8 million between 2002 and 2007 according to data from the Preliminary Estimates of Business Ownership by Gender, Ethnicity, Race and Veteran Status: 2007, from the U.S. Census Bureau’s 2007 Survey of Business Owners.

David Hinson

“It is encouraging that the minority business community is growing and making progress relative to all U.S. firms, but economic parity remains elusive,” MBDA’s National Director, David A. Hinson said. “While the number of minority-owned businesses continues to grow, they are still smaller in size and scale compared to non-minority-owned firms.”

In 2007, average gross receipts for minority-owned firms increased to $179,000 from $167,000 in 2002 – still well below gross receipts for non-minority-owned firms, which had average gross receipts of $490,000.

“We must continue to close this gap,” Hinson said. “It is unacceptable, particularly during an economic crisis that disproportionately affects the minority business community, to have this ongoing disparity.”

As the nation’s population demographics change, so too has the United States business community. Specifically:

  • Between 2002 and 2007, the number of minority firms grew by 46 percent, compared to 18 percent for all U.S. firms, and compared to 13.7 percent growth for the minority population age 18 and older, during the same period.
  • Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.7 million in 2002.
  • Asian-owned firms grew 41 percent to 1.6 million from 2002. Asian-owned firms continue to generate the highest annual gross receipts at $510.1 billion in 2007, increasing 56 percent from 2002.
  • The number of Hispanic-owned businesses totaled 2.3 million in 2007, up 44 percent from 2002. Receipts for Hispanic firms increased 55 percent to $343.3 billion.
  • Black, or African-American-owned businesses grew to 1.9 million firms in 2007, up 61 percent from 2002 – the largest increase among all minority-owned companies; and generated $135.6 billion in gross receipts, up 53 percent from 2002.
  • There were 237,203 American Indian and Alaska Native-owned businesses in 2007, up 18 percent from 2002, generating $34.2 billion in gross receipts, an increase of 27 percent.
  • Native Hawaiian- and Other Pacific Islander-owned businesses totaled 38,854 in 2007, up 34 percent from 2002. While these firms’ reported the largest increase in receipts among all minority-owned firms in 2002 (63 percent), the total amount reached only $7 billion.
  • Minority-owned firms employed approximately 5.9 million people in 2007, up from 4.6 million in 2002.

“The data on minority business growth clearly shows that minority-owned and operated firms are a significant contributor to the long term health of the United States economy,” Hinson said. “We must aggressively grow minority-owned firms and assist them in contributing to President Obama’s goal of doubling exports over the next five years.”

The Obama Administration established the National Export Initiative earlier this year to support export and domestic jobs. Additionally, the Administration established the Interagency Task Force on Federal Contracting Opportunities for Small Businesses. With MBDA’s input, this task force will make recommendations to the President on how to increase government contracting opportunities for small and minority-owned businesses.

Minority-owned firms help fuel the engine that drives our economy and job creation. Success of the minority business community leads to the creation of more jobs, an expanded tax base, community benefits and global competitiveness. Their success will ultimately help drive the success and recovery of the American economy.

The Survey of Business Owners is conducted every five years as part of the economic census. The 2007 survey collected data from a sample of more than 2.3 million businesses. The collected data in a sample survey are subject to sampling variability as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage. More details concerning the SBO survey design, methodology and data limitations can be found at http://www.census.gov/econ/sbo/methodology.html.

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