WASHINGTON--(BUSINESS WIRE)--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.
“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:
“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.
About the Minority Business Development Agency (MBDA)
Promoting Competitive Business Growth for 40 Years – 1969-2009
MBDA, www.mbda.gov, an agency within the U.S. Department of Commerce, celebrates 40 years of promoting business growth for minority businesses. In doing so, minority-owned firms are better equipped to create jobs, impact local economies and compete successfully in domestic and global marketplaces. With a nationwide network of more than 45 business centers and strategic partners, MBDA assists minority entrepreneurs and business owners with consulting services, contract and financing opportunities, bonding and certification services, building business-to-business alliances and executive training.