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**REVISED** EMBARGOED UNTIL: DEC. 12, 1995 (TUESDAY) Public Information Office CB95-219 301-457-3030 301-457-4067 (TDD) Eddie Salyers Valerie Strang 301-763-5726 BLACK-OWNED BUSINESS FIRMS UP 46 PERCENT OVER FIVE YEARS, CENSUS BUREAU SURVEY SHOWS EMBARGOED UNTIL: DEC. 12, 1995 (TUESDAY) - The number of African American-owned businesses in the United States increased 46 percent from 424,165 to 620,912 between 1987 and 1992, according to a new Commerce Department's Census Bureau report entitled "1992 Black-Owned Businesses" (MB92-1), that will be published later this year. Receipts for these firms increased by 63 percent during the five-year span, from $19.8 billion to $32.2 billion. The report does not include C corporations. (A C corporation is any incorporated business other than a subchapter S corporation.) The District of Columbia had the largest percentage of African American-owned firms, followed by Maryland and Mississippi. Two-thirds of African American businesses operated as a service or retail trade business in 1992. Receipts per firm averaged $52,000 for African American-owned firms, compared with $193,000 for all U.S. firms. Fifty-six percent of African American firms had receipts under $10,000; little more than 3,000 firms had sales of $1 million or more. The survey also shows that the 10 percent of African American-owned firms which had paid employees, accounted for 70 percent of the gross receipts of African American firms. Of these firms, 342 had 100 or more employees and accounted for $6 billion in receipts. Approximately 94 percent of African American firms were sole proprietorships in 1992. Partnerships and subchapter S corporations comprised 2 and 4 percent respectively. (A sole proprietorship is an unincorporated business owned by an individual; a partnership is an unincorporated business owned by two or more persons; a subchapter S corporation is an incorporated business with 35 or fewer stockholders.) The total number of all the nation's firms increased 26 percent from 13.7 million in 1987 to 17.3 million in 1992. Receipts for these same businesses grew 67 percent, from $2 trillion to $3 trillion. The report contains information on the number of firms, receipts, number of paid employees, and annual payroll. These data are presented by geographic area (the nation, states, and selected metropolitan areas, counties, and cities), industry, size of firm, and legal form of organization with comparative 1992 data for all U.S. firms. The data in this report were collected as part of the 1992 Economic Census from a large sample of all non-farm businesses filing tax forms as sole proprietorships, partnerships, or subchapter S corporations (corporations other than subchapter S were excluded), and with receipts of $500 or more in 1992. The information was collected from a sample survey, and is therefore subject to sampling variability as well as reporting and coverage errors. Comparisons to 1987 should be done with extreme caution because changes in tax laws cause inconsistencies between the 1987 and 1992 data. Changes in survey methodology may also contribute to the differences. -X- Editor's note: media representatives may obtain reproduced excerpts from the forthcoming "1992 Black-Owned Businesses" (MB92-1), from the Census Bureau's Public Information Office on 301-457-3030; fax: 301-457-3670; or e-mail: email@example.com. Non-media requests should go to the bureau's minority- and women-owned business information staff on 301-763-5726. A notice will be issued when printed copies of the report are available.