THE MOVERS

February 9th, 2011

Black-Owned Firms Bested National Growth Rate

871112_f520

(WSJ) The number of businesses owned by black men and women grew at more than triple the national rate in recent years, a trend that may be linked to a long-stagnating job market.

In 2007, the number of black-owned businesses jumped to 1.9 million, a 60.5% increase from 2002, according to a survey released Tuesday from the U.S. Census Bureau. By comparison, the number of U.S. businesses overall rose by just 18% during the same period.

The government agency, which conducts the survey every five years, defines black-owned businesses as firms in which blacks own 51% or more of the equity, interest or stock of the business.

Many African-Americans likely turned to entrepreneurship in the years covered in the study because good-paying jobs were difficult to come by, says Marc Morial, president and chief executive of the National Urban League, a civil-rights group headquartered in New York.

“The unemployment rate in the black community never got back down to where it was before the recession in 2001,” he says. “So you have a bit of entrepreneurship by necessity.”

Mr. Morial added that many African-Americans also recognized the potential to become financially secure through self-employment.

“There’s an economic independent streak, particularly among emerging generations in the black community,” he says. “Building a business gives greater satisfaction, and cushions them from the shock of working for a place and then finding themselves out of a job because of economic down cycles.”

In addition to growing in volume, black-owned businesses also saw their annual sales increase by 55.1% between 2002 and 2007 to $137.5 billion, the Census data show. Further, the number of black-owned businesses with gross annual sales of $1 million or more rose by 35.4% to 14,507 during this period.

Mr. Morial says the findings suggest that one way for the U.S. economy to create more jobs today would be for investors to boost funding to growing black-owned firms. “These are an incredibly fertile place,” he says. “Hedge funds, private equity and the venture-fund community need to focus on these businesses.”

The Census show also shows that from 2002 to 2007 the number of black-owned businesses with employees increased 13.0% to 106,824, with the majority—55.4%—employing between one and four people. There were also 1.8 million black-owned businesses that had no paid employees in 2007, an increase of 64.5% from 2002.

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

By geography, New York was home to most black-owned businesses in 2007, followed by Georgia and Florida, respectively. Black-owned businesses were also most prevalent that year in New York, Chicago and Houston, respectively.


About the Author

Socialtik Mag
Socialtik Mag is a progressive platform for young, aspiring professionals to express our views on the issues and ideas in the world around us. It’s the Gen-Y perspective of life in the new decade. In addition to the original content we produce, we post from sites around the internet to keep our peers aware of what’s positive, what’s fresh, and most importantly, what’s progressive.




 
 

 
blkstyle

Pushing the Boundaries of Black Style

THE best posts on the style blog Street Etiquette find its principals, Travis Gumbs and Joshua Kissi, in motion. As opposed to the fascistically frozen street-style snaps of The Sartorialist and others, these pictures are style...
by Ronn Richardson
71

 
 
Key-in-Jail-Cell-Door-007

From Jail Cell to Boardroom

I recently came across a book called, Nothing to Lose, Everything to Gain, by Millionaire Ryan Blair. One of my co-workers knows that I love to read entrepreneurial literature, so she decided to pass it to me so I could give it...
by DeAndra Harrison
11

 
 
confused-computer-user

Everyone Wants to Be Self-Employed, But Are You Ready?

Tom Peters, co-author of In Search of Excellence: Lessons from America’s Best-Run Companies, noted in a 1993 column titled “A Return to Self Reliance” that self-employment is not a new concept in the United St...
by Socialtik Mag
12

 

 
ETC
man-in-box1

The Power of Thinking INSIDE the Box

People often say, “Try to think outside of the box,” when you are in a complex situation or making a difficult decision. However, have you ever wondered what would happen if you did the opposite and thought inside the box t...
by DeAndra Harrison
12

 
 
 

New Program Salutes Top Minority Business Owners

The New York & New Jersey Minority Supplier Development Council has initiated a program to salute its certified minority business owners that secured major corporate contracts and purchase orders during 2009-2010. At The Co...
by Ronn Richardson
5

 



21 Comments


  1. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is listed on the New York Stock Exchang the moment sweetie bracelets are extremely favorite; they can be a example of items of fun jewelry which might be expressed by brands renowned for quality


  2. This was really an interesting one and I like to say that keep posting and entertaining us. This was one of the nice site I have ever visit.


  3. mac cosmetics is a professional mac cosmetics wholesale website


  4. For me, it doesn’t really matter what’s the skin color of the business owner. I am just glad that local businesses are booming.


  5. Very good presentation. I am too appreciated get this post. i know that a lot of people know about this valentines day.


  6. Extremely details specifically the last part I care for such information and facts much. I was searching for this certain details for some time


  7. Make sure that you spend quality time shopping for Jeffrey Campbell shoes and look different from the crowd. Do not make any decision in haste as this would eventually turn out to be the bad decision altogether.


  8. The first thing that strikes us when we enter this website is the fact that is has a pretty poor and unprofessional design.


  9. businesses owned by black men and women grew at more than triple the national rate in recent years, a trend that may be linked to a long-stagnating job market.


  10. Great Post… Nice share for me, maybe nice for all reader of your post.. thanks


  11. Telecom companies do not need to disrupt or divert your phone, Internet or television services while they upgrade their relays or to make repairs. You get non-stop, fast and clear signals.


  12. Telecom companies do not need to disrupt or divert your phone, Internet or television services while they upgrade their relays or to make repairs. You get non-stop, fast and clear signals.


  13. We don’t believe that same-day delivery will disrupt the overall transportation industry significantly—at least not yet.


  14. The government agency, which conducts the survey every five years, defines black-owned businesses as firms in which blacks own 51% or more of the equity, interest or stock of the business.


  15. The government agency, which conducts the survey every five years, defines black-owned businesses as firms in which blacks own 51% or more of the equity, interest or stock of the business.


  16. The government agency, which conducts the survey every five years, defines black-owned businesses as firms in which blacks own 51% or more of the equity, interest or stock of the business.


  17. Sometimes we neglect those who are really good in there work and can make you more benefits.


  18. A simplified version of this white throw pillows can be made using a single piece of fabric, trimmed with wide ribbon.



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.


thru 9/26 - Fall Sale. 30% Off select styles. Disc