minority business ownership analysis€¦ · necessary for business startup or expansion.6,7,8,9...

A U.S. Department of Commerce Economic Development Administration

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MinorityBusinessOwnershipAnalysisStateofWisconsin2012ByChadChriestenson,EmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStates(U.S.),withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarrierstoinformation,technicalsupportforbusinessplanning,andthefinancialresourcesnecessaryforbusinessstartuporexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialforshapingthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstooddue,inpart,toalackofdata.11,1,12,13ThisimpliesthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheirpotentialforentrepreneurialventureslackqualityinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”,basedonU.S.CensusBureauclassifications.Basedonthisdefinitionminoritybusinessownersincludeawiderangeofpeople

wholikelyfaceabroadarrayofchallenges.Inthisfactsheet,wedisaggregateminoritybusinessownersintofourcategories:African-American,Indigenous(AmericanIndianorAlaskaNative),Asian,andHispanic.

InWisconsin,minoritygroupsownunequalsharesofbusinessesrelativetotheirshareofthepopulation.Inparity,wewouldexpectthatifAfrican-Americansconstitute5.2%ofthepopulationtheyshouldown5.2%ofbusinesses.Ingeneral,however,theproportionof

Figure1:ParityAnalysis-MinorityBusinessOwnershipandSalesinWisconsin

0%

2%

4%

6%

8%

10%

12%

14%

Minority AfricanAmerican

Asian Hispanic Indigenous

%Population25+ %ofBachelor'sdegrees

%Firms %Receipts


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businessesownedbydifferentminoritygroupsdoesnotfollowthispattern.WiththeexceptionoftheAsianpopulation,minoritiesownadisproportionatelysmallshareofbusinessescomparedtotheirshareofthepopulation(Table1).Theirshareofsalesreceiptstendstobeevensmallerthantheirshareoffirms. Educationisakeydeterminateofentrepreneurialpropensity,socomparingeducationalattainmentandbusinessownershipcanbeinsightful.15InWisconsin,ifwefocusontheshareofpopulationwithabachelor’sdegree,theparitygapismuchsmaller(Table1).Thus,educationattainmentmaybeakeymechanismforenhancingentrepreneurshipamongminoritypopulations.African-Americans,NativeAmericans,andHispanicsallownmorefirmsthantheirproportionatesharebasedoneducationalattainment.Asians,beingtheexception,ownadisproportionatelysmallshareoffirmsrelativetothesharewithabachelor’sdegree,suggestingapreferenceforwage-and-salaryemploymentamongthecollege-educatedpopulation.

AmongstminoritygroupsinthestateofWisconsin,African-Americansownthelargestnumberoffirms(Table2).Inmeasuressuchascombinedgrossreceiptsandnumberoffirmswithemployees,however,theylagbothAsianandHispanicgroups,suggestingthatAfrican-American-ownedbusinessesarequitesmallandperhapsstrugglingtogrow.Intermsof

African-American Asian Hispanic Indigenous

TotalMinority

%Population25+ 5.2% 2.1% 4.5% 0.8% 13.0%

%Bachelor'sDegree 2.3% 3.3% 1.9% 0.4% 9.0%

%Firms 4.5% 2.3% 2.3% 0.7% 9.7%

%Receipts 0.6% 2.1% 1.2% 0.2% 4.0%

African-American Asian Hispanic Indigenous

TotalMinority

NumberofFirms 18,830 9,757 10,122 2,833 41,880CombinedGrossReceipts $1,453,368 $5,081,667 $2,867,933 $397,502 $10,146,090NumberofFirmswithEmployees 1,053 2,691 1,322 399 5,522CombinedReceiptsofFirmswithEmployees $1,170,193 $4,487,278 $2,622,741 $349,351 $8,959,840NumberofPaidEmployees 11,661 24,945 15,200 2,296 54,652AverageGrossReceipts $77.18 $520.82 $283.34 $140.31 $242.27AverageReceiptsofFirmswithEmployees $1,111.29 $1,667.51 $1,983.92 $875.57 $1,622.57

Table1:MinoritysharesofPopulation,College-Educated,Firms,andSalesReceipts

Table2:Minority-OwnedBusinessCharacteristicsinWisconsin


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averagegrossreceipts,Asian-ownedfirmsperformthebest,withnearlytwicethetotalofanyotherminoritygroup.Hispanic-ownedfirmsbringinthesecondhighestaveragegrossreceiptsbuthavethehighestaveragereceiptsforfirmswithemployees.Ingeneral,African-AmericanandIndigenous-ownedfirmsfallbelowtotalminorityaverageswhereasHispanicand,particularly,Asian-ownedfirmsareperformingaboveaverage.ConclusionAcrossmostminoritygroups–African-American,Indigenous/NativeAmerican,andHispanic–fewerbusinessesareownedthanwouldbeexpectedinparity.TheoneexceptionisAsianownedbusinesses.However,comparedtotheshareofpopulationthathasabachelor’sdegree,whichmightbeexpectedtobemoreentrepreneurial,theresultsaremoreequitable.African-AmericansownthelargestproportionofbusinessesbutbringinlessingrossreceiptsthanHispanicsorAsians.Aseducationattainmentandbusinessownershipappeartobecloselycorrelated,particularlyforHispanics,educationmaybekeyforenhancingentrepreneurialoutcomesforminorities.AmongtheAsianpopulationhowever,theshareorrateofbusinessownershipissmallerthantheshareorrateofbachelor’sdegreeattainmentsuggestingthattheremaybeapreferenceforwage-and-salaryemploymentaseducationincreasesforsomeindividuals.MethodsFigure1&Table12011-2015AmericanCommunitySurveyEducationalAttainmentDatawereusedtocalculatesharesofbachelor’sdegrees.Responsesfor“Whitealone,notHispanicorLatino”wereusedtocalculatenon-minorityshare,whileminoritysharewastheremainingpercentoutof100.Onlyages25anolderwereusedforthiscalculation.Table2Businessstatisticsweredrawnfromthe2012SurveyofBusinessOwners.Averageswerecalculatedusingcombinedreceiptsandnumberoffirms.References1. Moon,Z.K.,Farmer,F.L.,Miller,W.P.&Abreo,C.(2014).Identificationandattenuationof

barrierstoentrepreneurship:TargetingnewdestinationLatinoimmigrants.EconomicDevelopmentQuarterly,28(1),61-72.doi.org/10.1177/0891242413513495

2. Valdivia,C.,Jeanetta,S.,Flores,L.Y.,Morales,A.,&Martinez,D.(2012).Latino/awealthandlivelihoodstrategiesinruralmidwesterncommunities.Choices,27(1).Retrievedfromhttp://www.jstor.org/stable/choices.27.1.08

3. Wang,Q.andLi,W.(2007)Entrepreneurship,ethnicityandlocalcontexts:HispanicentrepreneursinthreeU.S.southernmetropolitanareas.GeoJournal:68(2/3),167-182.doi.org/10.1177/0891242415598837

4. Fairlie,R.W.,&Robb,A.W.(2010).Disparitiesincapitalaccessbetweenminorityandnon-minority-ownedbusinesses:ThetroublingrealityofcapitallimitationsfacedbyMBEs.ReportfortheU.S.DepartmentofCommerce,MinorityBusinessDevelopmentAgency.Retrievedfromhttp://www.mbda.gov/sites/default/files/DisparitiesinCapitalAccessReport.pdf

5. Obuko,S.andPlanting,M.(2015).Thestateofminoritybusinessenterprises:Anoverviewofthe2007surveyofbusinessowners.U.S.DepartmentofCommerce,MinorityBusinessDevelopmentAgency.Retrievedfromhttps://www.mbda.gov/page/state-minority-business-enterprises-overview-2007-survey-business-owners-0

6. Bonds,M.(2007).Lookingbeyondthenumbers:ThestrugglesofBlackbusinessestosurvive:Aqualitativeapproach.JournalofBlackStudies,37(5),581-601.Retrievedfromhttp://www.jstor.org/stable/40034357


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7. Erdmann,S.J.(2016).AmericanIndianentrepreneurs’perceptionsoftheirsuccessinestablishingbusinessesonornearreservationsinWisconsin.JournalofDevelopmentalEntrepreneurship,21(3),1-23.doi.org/10.1142/S1084946716500175

8. Freeland,R.E.,&Keister,L.A.(2016).Howdoesraceandethnicityaffectpersistenceinimmatureventures?JournalofSmallBusinessManagement,54(1),201-228.doi.org/10.1111/jsbm.12138

9. Kopkin,N.(2017).Doesracialprejudiceaffectblackentrepreneurship?:Evidenceexploitingspatialdifferencesinprejudicialattitudes.AppliedEconomics,49(31),3045-3066.doi.org/10.1080/00036846.2016.1254336

10. Wang,Q.(2015).Foreign-bornstatus,gender,andHispanicbusinessownershipacrossU.S.metropolitanlabormarkets:Amultilevelapproach.EconomicDevelopmentQuarterly:29(4),328-340.doi.org/10.1177/0891242415598837.

11. Hum,T.(2006).NewYorkCity’sAsianimmigranteconomies:Communitydevelopmentneedsandchallenges.InP.OngandA.Loukaitou-Sideris(Eds.)Jobsandeconomicdevelopmentinminoritycommunities.(pp.176-212).Philadelphia:TempleUniversityPress.

12. McManus,M.(2016,September).Minoritybusinessownership:Datafromthe2012surveyofbusinessowners(IssueBrief12).U.S.SmallBusinessAdministration.Retrievedfromhttps://www.sba.gov/sites/default/files/advocacy/Minority-Owned-Businesses-in-the-US.pdf

13. Boston,T.D.(2006).TheroleofBlack-ownedbusinessesinBlackcommunitydevelopment.InP.OngandA.Loukaitou-Sideris(Eds.)Jobsandeconomicdevelopmentinminoritycommunities.(pp.161-175).Philadelphia:TempleUniversityPress.

14. Anderson,L.&Hurwitz,J.M.(2016).Opportunityforall:Strategiesforinclusiveeconomicdevelopment.Washington,DC:InternationalEconomicDevelopmentCouncil.Retrievedfromhttps://www.iedconline.org/book-store/edrp-reports/opportunity-for-all-strategies-for-inclusive-economic-development/

15. Conroy,T.,&Weiler,S.(2015).WherearetheWomenEntrepreneurs?BusinessOwnershipGrowthbyGenderAcrosstheAmericanUrbanLandscape.EconomicInquiry,53(4),1872–1892.


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BusinessOwnershipParityAnalysisBrownCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStatesofAmerica(U.S.),withthepotentialtoshapefuturelocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportsintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”basedontheU.S.CensusBureaucategorysystem.Basedonthisdefinition,minoritybusinessownersincludearangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfact

sheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoidsomedatalimitations.InBrowncounty,minoritiesownadisproportionatelysmallshareofbusinesses.Inparity,wewouldexpectthatminoritiesownbusinessesandearnssalesinsharescomparabletotheirproportionofthepopulation.Forexample,



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ifminoritiesare10%ofthepopulation,wemightexpectminoritiestoalsoown10%ofbusinessesandearn10%ofsales.However,Figure1andthecorrespondingTable1showthatsubstantialgapsexist.While12%ofthepopulation25andolderisminority,theymakeuponly6%offirmowners.Evenmorestark,theirshareofrevenueconstitutesjust2%ofallreceipts.Asshowninthegraph,thisunderrepresentationisstillapparentwheneducationistakenintoaccount.Ifwemoreconservativelyfocusonthepopulationofbachelor’sdegreeholdersratherthanthepopulationintotal,minoritiesrepresent7.7%ofthepopulation—stilllargerthantheirshareoffirmownersandreceipts.Theshareofbusinessesthatareequallynonminorityandminority-ownedissmallestatjust0.4%andearningjust0.1%ofsalesreceipts.BasedonthefirmperformancedatainTable2,theaveragegrossreceiptsforminority-ownedfirmswasjust35%oftheaveragereceiptsfornonminority-ownedfirms.Firmswithsharedownershipfaredevenworseasmeasuredbyrevenue.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.

Table1:MinorityandNon-minoritysharesofPopulation,College-Educated,Firms,andSalesReceipts

Table2:MinorityandNon-minorityOwnedBusinessCharacteristicsinWisconsin(Receiptsinthousands)


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MethodsFigure1&Table12011-2015AmericanCommunitySurveyEducationalAttainmentDatawereusedtocalculatesharesofbachelor’sdegrees.Responsesfor“Whitealone,notHispanicorLatino”wereusedtocalculatenonminorityshare,whileminoritysharewastheremainingpercentoutof100.Onlyages25anolderwereusedforthiscalculation.Table2Businessstatisticsweredrawnfromthe2012SurveyofBusinessOwners.Averageswerecalculatedusingcombinedreceiptsandnumberoffirms.References1. Moon,Z.K.,Farmer,F.L.,Miller,W.P.&Abreo,C.(2014).Identificationandattenuationof
















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BusinessOwnershipParityAnalysisFondduLacCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStates(U.S.)ofAmerica,withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”basedontheU.S.CensusBureaucategorysystem.Usingthisdefinition,minoritybusinessownersincludeawiderangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfactsheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoid

somedatalimitations.InFondduLacCounty,minoritiesownadisproportionatelysmallshareofbusinessescomparedtotheirnonminoritycounterparts.Inparity,wewouldexpectthatminoritiesownbusinessesinsharescomparabletotheirshareofthepopulation.Forexample,ifminoritiesare10%ofthepopulation,wemightexpectminoritiestoalsoown10%of



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businesses.However,asshowninFigure1andtheaccompanyingTable1,asubstantialgapexists.Whileminoritiesrepresent5.7%ofthepopulation25andolder,theyownonly4%ofallbusinesses.Asshowninthegraph,thisunderrepresentationisstillapparentwheneducationistakenintoaccount.Ifwemoreconservativelyfocusonthepopulationofbachelor’sdegreeholdersratherthanthepopulationintotal,minoritiesrepresent5.5%ofthepopulation—stilllargerthantheirshareoffirmowners.Theshareofbusinessesthatareequallynonminorityandminorityownedbusinessisthesmallestcategoryat0.5%ofbusinessesandearning0.2%ofsales.BasedonthefirmcharacteristicspresentedinTable2,15%ofminority-ownedfirmshaveemployeescomparedto23%ofnonminorityfirms,suggestingthatminorityfirmsaresmalleronaverageandlesslikelytohireworkers,possiblybecausetheyfacebarrierstogrowthevenoncethey’vesuccessfullystartedtheirbusinesses.Grossreceiptestimatesforminority-ownedfirmswerenotpublished.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.

S:Withheldbecauseestimatedidnotmeetpublicationstandard

S:Withheldbecauseestimatedidnotmeetpublicationstandarde:250to499employees




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BusinessOwnershipParityAnalysisOutagamieCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStates(U.S.)ofAmerica,withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportsintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”basedontheU.S.CensusBureaucategorysystem.Usingthisdefinition,minoritybusinessownersincludeawiderangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfactsheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoidsomedatalimitations.

InOutagamieCounty,minoritiesownadisproportionatelysmallshareofbusinessescomparedsharescomparabletotheirshareofthepopulation.Forexample,ifminoritiesare10%ofthepopulation,wemightexpectminoritiestoalsoown10%ofbusinesses.However,asshowninFigure1andtheaccompanyingTable1,asubstantialgapexists.



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Whileminoritiesrepresent8%ofthepopulation25andolder,just5%offirmsareminority-owned.Evenmorestark,theirshareofrevenueconstitutesonly2%ofallreceipts.Asshowninthegraph,thisunderrepresentationisstillapparentwheneducationistakenintoaccount.Ifwemoreconservativelyfocusonthepopulationofbachelor’sdegreeholdersratherthanthepopulationintotal,minoritiesrepresent6%ofthepopulation—stilllargerthantheirshareoffirmownersandreceipts.Theshareofbusinessesthatareequallyminorityandnonminority-ownedisthesmallestcategoryat0.9%ofbusinessesandearning0.1%ofsalesreceipts.BasedonthesalesandemploymentdatainTable2,theaveragegrossreceiptsforminority-ownedfirmsisjust37%oftheaveragereceiptsfornonminority-ownedfirms.Firmswithsharedownershipfaredevenworseasmeasuredbyrevenue.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.




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BusinessOwnershipParityAnalysisTrempealeauCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStates(U.S.)ofAmerica,withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”,typifiedbytheU.S.CensusBureau.Basedonthisdefinitionminoritybusinessownersincludearangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfactsheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoidsomedatalimitations.

InTrempealeauCounty,minoritiesownadisproportionatelysmallshareofbusinessescomparedtotheirnonminoritycounterparts.Inparity,wewouldexpectthatminoritiesownbusinessesinsharescomparabletotheirshareofthepopulation.Forexample,ifminoritiesare10%ofthepopulation,wemightexpectminoritiestoalsoown10%of



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businesses.However,asshowninFigure1andtheaccompanyingTable1,asubstantialgapexists.While5%ofthepopulation25andolderisminority,just2.7%offirmsareminority-owned.Anestimatefortheshareofreceiptstakeninbyminorityfirmswasnotpublished.However,ifwelookatthe99.9%estimateinthetablegivenfornonminorityreceipts,wecandeducethatshareofreceiptsgoingtominority-ownedbusinessesislikelylessthantheirpopulationandfirmownershipshares.Asshowninthegraph,thisunderrepresentationisstillapparentwheneducationistakenintoaccount.Shareofbachelor’sdegreesobtainedbyminoritieswasnearlyidenticaltotheirshareofthepopulation25andolderatcloseto5%.BasedonthesalesandemploymentdatapresentedinTable2,11%ofminority-ownedfirmshaveemployeescomparedto19%ofnonminorityfirms,suggestingthatminorityfirmsaresmalleronaverageandlesslikelytohireworkers,perhapsbecausetheyfacebarrierstogrowthevenoncethey’vesuccessfullystartedtheirbusinesses.Grossreceiptestimatesforminority-ownedfirmswerenotpublished.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.

S:Withheldbecauseestimatedidnotmeetpublicationstandard.

S:Withheldbecauseestimatedidnotmeetpublicationstandardb:20to99employees




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BusinessOwnershipParityAnalysisWaupacaCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStatesofAmerica(U.S.),withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportsintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulation sandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”ascategorizedbytheU.S.CensusBureau.Usingthisdefinition,minoritybusinessownersincludearangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfactsheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoidsome

datalimitations.InWaupacaCounty,minoritiesownadisproportionatelysmallshareofbusinessescomparedtotheirnonminoritycounterparts.Inparity,wewouldexpectthatminoritiesownbusinessesinsharescomparabletotheirshareofthepopulation.Forexample,ifminoritiesare10%ofthepopulation,wemightexpect



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minoritiestoalsoown10%ofbusinesses.However,asshowninFigure1andtheaccompanyingTable1,asubstantialgapexists.While3%ofthepopulation25andolderisminority,theymakeuponly2%offirmowners.Asshowninthegraph,thisunderrepresentationisstillapparentwheneducationistakenintoaccount.Ifwemoreconservativelyfocusonthepopulationofbachelor’sdegreeholdersratherthanthepopulationintotal,minoritiesrepresent2.5%ofthepopulation—stilllargerthantheirshareoffirmowners.Additionally,thesharesoffirmswithemployeesinnonminorityandminority-ownedfirms,were23%and16%respectively,suggestingthatminorityfirmsaresmalleronaverageandlesslikelytohireworkers,possiblybecausetheyfacebarrierstogrowthevenoncethey’vesuccessfullystartedtheirbusinesses.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.


S:Withheldbecauseestimatedidnotmeetpublicationstandardb:20–99employees




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MethodFigure1&Table12011-2015AmericanCommunitySurveyEducationalAttainmentDatawereusedtocalculatesharesofbachelor’sdegrees.Responsesfor“Whitealone,notHispanicorLatino”wereusedtocalculatenon-minorityshare,whileminoritysharewastheremainingpercentoutof100.Onlyages25anolderwereusedforthiscalculation.Table2Businessstatisticsweredrawnfromthe2012SurveyofBusinessOwners.Averageswerecalculatedusingcombinedreceiptsandnumberoffirms.References1. Moon,Z.K.,Farmer,F.L.,Miller,W.P.&Abreo,C.(2014).Identificationandattenuationof
















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BusinessOwnershipParityAnalysisWinnebagoCounty2012ByEmmettSexton,TessaConroy,andDianaHammerMinority-ownedbusinesseshavebecomeaneconomicengineintheUnitedStates(U.S.)ofAmerica,withthepotentialtoshapethefutureoflocaleconomies.1,2,3Nationally,minoritiesandimmigrantsstartnewbusinessesathigherratesthannon-Hispanicwhitepeople,4,5despitefacingawiderangeofchallengessuchasbarriersinaccessinginformation,technicalsupportsintermsofbusinessplanning,andfinancialresourcesnecessaryforbusinessstartupandexpansion.6,7,8,9Whilethegrowingimportanceofminority-ownedbusinessesandtheirpotentialroleinthefutureoftheU.S.economyiswelldocumentedatthefederallevel,4,5,10theirimpactatthestateandlocallevelsisnotadequatelyunderstoodpartlyduetolackofdata.11,1,12,13TheimplicationisthatcommunitydevelopmentpractitionersandpolicymakersinWisconsinwhocouldbecapitalizingontherapidgrowthofminoritypopulationsandtheiraffinityforentrepreneurialventureslackmeaningfulinformationtoguidetheirdecisions.14,1

Minority-ownedbusinessesarethoseownedbyanindividualwhoself-identifiesasanyraceorethnicityexcept“Whitealone,Non-HispanicorLatino”ascategorizedbytheU.S.CensusBureau.Usingthisdefinition,minoritybusinessownersincludearangeofpeoplewholikelyfacewidelyvaryingchallengesandhaveuniqueneeds.Forthepurposesofthisfactsheet,however,allminoritybusinessownersareaggregatedtoshowgeneraltrendsandavoidsomedatalimitations.

InWinnebagoCounty,minoritiesownadisproportionatelysmallshareofbusinessescomparedtotheirnonminoritycounterparts.Inparity,wewouldexpectthatminoritiesownbusinessesinsharescomparabletotheirshareofthepopulation.Forexample,ifminoritiesare10%ofthepopulation,wemightexpectminoritiestoalsoown10%of



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businesses.However,asshowninFigure1andtheaccompanyingTable1,asubstantialgapexists.While7.1%ofthepopulation25andolderisminority,theymakeupnearly6%offirmowners.However,theirshareofrevenueconstitutesonly2%ofallreceipts.Ifwemoreconservativelyfocusonthepopulationofbachelor’sdegreeholdersratherthanthepopulationintotal,minoritiesrepresent5%ofthepopulation,suggestingthatamongthepoolofcollege-educatedadults,minoritybusinessownerdorelativelywell.Thatsaid,theystillearnadisproportionatelysmallshareofreceipts.Businessesthatareequallyminorityandnonminorityownedrepresentthesmallestshareofbusinessesat0.7%.BasedonthesalesandemploymentdatainTable2,23%ofminority-ownedfirmshaveemployeescomparedto29%ofnonminorityfirms,suggestingthatminorityfirmsaresmalleronaverageandlesslikelytohireworkers,perhapsbecausetheyfacebarrierstogrowthevenoncethey’vesuccessfullystartedtheirbusinesses.Grossreceiptestimatesforminority-ownedfirmswerenotpublished.Conclusion“Minority”individuals–thosewhoidentifyasAfrican-American,Asian,NativeAmerican,Hispanic,oranotherraceorethnicity–donotownarepresentativeshareofbusinesses.Whilethereasonscannotbedeterminedfromthisanalysis,itsignalsaneedtobetterunderstandtheexistingandaspiring“minority”entrepreneursinthecounty.Perhapsbyaddressingkeybarriersandobstaclestobusinesssurvival,moreminorityentrepreneurscouldsuccessfullypursuebusinessownershipandcreatejobsforthemselvesandotherswhilehelpingtoshapetheeconomicfutureoftheircommunities.


S:Withheldbecauseestimatedidnotmeetpublicationstandarda:1to19employeesg:1,000to2,499employees




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minority business ownership analysis€¦ · necessary for business startup or expansion.6,7,8,9...

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