By Nicole Ibarra
Hispanics represent the largest group of minority-business owners, claiming 6.6 percent of the 23 million U.S. firms, according to a demographic review released by the U.S. Small Business Administration this month.
Hispanics also own 3.7 percent of all employer firms and 7.4 percent of nonemployer firms, according to figures collected from the 2002 Survey of Business Owners (the latest data available from the U.S. Census Bureau). The report found that Hispanic-owned businesses in 2002 were concentrated in administrative and support, waste management, and remediation services.
Despite the progress, one figure suggests that Hispanic small businesses still have an uphill road. On average, for every dollar made by a white-owned firm, a Hispanic-owned firm made 56 cents. Black-owned businesses made just 43 cents, comparatively.
The study also measured the performance of four Hispanic subgroups: Mexican, Mexican American, and Chicano; Puerto Rican; Cuban; and other Spanish/Hispanic/Latino.
Among the subgroups, Cubans had the highest ratio of employer firms to total firms (18 percent), the highest average receipts per nonem-ployer firm ($36,692), the highest average receipts per employer firm ($1,108,998) and the highest average payroll per employee ($28,769).
The subgroup of Mexicans, Mexican Americans and Chicanos had the highest average number of employees per employer with 8.1.??The survey also revealed that the majority of Asians and Hispanics in the U.S. workforce are immigrants, either naturalized or not. Among self-employed Hispanics, 56.8 percent are immigrants.
Six general demographic groups were covered in the survey: Hispanic, White, Black, Asian, American Indian or Alaskan Native and Native Hawaiian or Pacific Islander. Other minorities trailed Hispanics in business ownership. Blacks owned 5.0 percent of all U.S. firms while Asians and Pacific Islanders owned 4.7 percent. In total, minorities owned approximately 18 percent of the 23 million U.S. firms in 2002.
To view the complete report, visit the Small Business Administration’s Web site at www.sba.gov.