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Survey of Business Owners (SBO)

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2007 Survey of Business Owners Summaries of Findings

Survey of Business Owners - Company Summary: 2007

SUMMARY OF FINDINGS

In 2007, there were 27.1 million nonfarm U.S. businesses, employing 117.3 million persons and generating $30.0 trillion in business revenues. Firms with paid employees accounted for 5.7 million or 21.2 percent of these businesses and $29.1 trillion or 96.8 percent of their receipts. Firms without employees accounted for 21.4 million or 78.8 percent of these businesses and $972.7 billion or 3.2 percent of their receipts.

SCOPE OF THIS REPORT

The Company Summary: 2007 is the only report in the 2007 Survey of Business Owners (SBO) publication series to provide estimates of gender business ownership by ethnicity, race, and veteran status, as well as estimates of minority- and nonminority-owned firms. The report provides data on both the number of employer and nonemployer firms, sales and receipts, annual payroll, and employment. Data aggregates are presented by gender, ethnicity, race, and veteran status of majority owners for the United States by 2007 North American Industry Classification System (NAICS), kind of business, state, metropolitan and micropolitan statistical areas, county, place, and employment and receipts size of firm.

These data come from the U.S. Census Bureau's 2007 Survey of Business Owners (SBO) and were collected as part of the 2007 Economic Census. The SBO includes a sample of more than 2.3 million nonfarm businesses filing 2007 tax forms as individual proprietorships, partnerships, or any type of corporation, and with receipts of $1,000 or more.

In the SBO, businesses are defined as either:

  • All firms classifiable by gender, ethnicity, race, and veteran status:
    • Gender classifications include:
      • Women-owned. Women own 51 percent or more of the equity, interest, or stock of the business.
      • Men-owned. Men own 51 percent or more of the equity, interest, or stock of the business.
      • Equally men-/women-owned. Men own 50-percent and women own 50-percent of the equity, interest, or stock of the business.
    • Ethnicity classifications include:
      • Hispanic-owned. Hispanics of any race own 51 percent or more of the equity, interest, or stock of the business.
        • Mexican-owned. Fifty-one percent or more owned by persons of Mexican, Mexican American, or Chicano origin.
        • Puerto Rican-owned. Fifty-one percent or more owned by persons of Puerto Rican origin.
        • Cuban-owned. Fifty-one percent or more owned by persons of Cuban origin.
        • Other Hispanic-owned. Fifty-one percent or more owned by persons of Other Hispanic, Latino, or Spanish origin [For example, Argentinean, Colombian, Dominican, Nicaraguan, Salvadoran, or Spaniard.]
      • Equally Hispanic-/non-Hispanic-owned. Hispanics own 50-percent and non-Hispanics own 50-percent of the equity, interest, or stock of the business.
      • Non-Hispanic-owned. Non-Hispanics of any race own 51 percent or more of the stock or equity of the business.
    • Race classifications include:
      • White-owned. Persons of European, North African, or Middle Eastern origins own 51 percent or more of the equity, interest, or stock of the business.
      • Black-owned. Persons of black African origins, including those who consider themselves to be Haitian, own 51 percent of more of the equity, interest, or stock of the business.
      • American Indian- and Alaska Native-owned. Persons of Native American origins and who maintain tribal affiliations or community attachments, own 51 percent or more of the equity, interest, or stock of the business.
      • Asian-owned. Persons of Asian origin own 51 percent or more of the equity, interest, or stock of the business. These businesses are also classified into the following detailed groups:
        • Asian Indian-owned. Fifty-one percent or more owned by persons of Asian Indian origin.
        • Chinese-owned. Fifty-one percent or more owned by persons of Chinese origin.
        • Filipino-owned. Fifty-one percent or more owned by persons of Filipino origin.
        • Japanese-owned. Fifty-one percent or more owned by persons of Japanese origin.
        • Korean-owned. Fifty-one percent or more owned by persons of Korean origin.
        • Vietnamese-owned. Fifty-one percent or more owned by persons of Vietnamese origin.
        • Other Asian-owned. Fifty-one percent or more owned by persons of Other Asian origin [For example, Hmong, Laotian, Thai, Pakistani, or Cambodian.]
      • Native Hawaiian- and Other Pacific Islander-owned. Persons of Native Hawaiian or Other Pacific Islander origin own 51 percent or more of the equity, interest, or stock of the business. These businesses are also classified into the following detailed groups:
        • Native Hawaiian-owned. Fifty-one percent or more owned by persons of Native Hawaiian origin.
        • Guamanian- or Chamorro-owned. Fifty-one percent or more owned by persons of Guamanian or Chamorro origin.
        • Samoan-owned. Fifty-one percent or more owned by persons of Samoan origin.
        • Other Pacific Islander-owned. Fifty-one percent or more owned by persons of Other Pacific Islander origin [For example, Fijian or Tongan.]
      • Some other race. Persons of origins not included in the “White,” “Black,” “American Indian and Alaska Native,” “Asian,” and “Native Hawaiian and Other Pacific Islander” categories described above, own 51 percent or more of the equity, interest, or stock of the business. [For example, Brazilian, Cape Verdean, Sudanese, or multiracial.]
    • Veteran status classifications include:
      • Veteran-owned. Veterans of the U.S. military own 51 percent or more of the equity, interest, or stock of the business.
      • Equally veteran-/nonveteran-owned. Veterans own 50-percent and nonveterans own 50-percent of the equity, interest, or stock of the business.
      • Nonveteran-owned. Nonveterans of any race own 51 percent or more of the equity, interest, or stock of the business.
  • Publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status.

The SBO also provides data by minority status classifications which include:

  • Minority. Any firm with Hispanic, Black or African American, American Indian and Alaska Native, Asian, or Native Hawaiian and Other Pacific Islander owners or with owners of some other race not classified as “non-Hispanic White,” holding 51 percent or more of the equity, interest, or stock of the business.
  • Equally minority/nonminority. Minorities own 50-percent and nonminorities own 50-percent of the equity, interest, or stock of the business.
  • Nonminority. Non-Hispanic Whites own 51 percent or more of the equity, interest, or stock of the business.

The data are not directly comparable to earlier surveys (see details in the section below on Data Comparability to Prior Surveys.)

GENDER, ETHNICITY, RACE, AND VETERAN STATUS

Table 7 [pdf, 142K; csv, 8K] shows the number of firms and value of receipts for all U.S. firms by detailed group, minority status, and for publicly held and other firms whose ownership by gender, ethnicity, race, and veteran status could not be determined in 2007. Detail may not add to total because a Hispanic or Latino firm may be of any race. Moreover, each owner had the option of selecting more than one race and therefore is included in each race selected.

The number of all U.S. businesses increased 17.9 percent between 2002 and 2007 from 23.0 to 27.1 million firms, while their receipts increased 32.9 percent to $30.0 trillion. In 2007, there were 12.6 million non-Hispanic men-owned businesses (46.7 percent of the nation's firms). These businesses accounted for $8.2 trillion in receipts (27.3 percent of total U.S. business revenue). There were 1.2 million Hispanic men-owned businesses (4.5 percent of the nation's businesses) earning $256.4 billion in receipts (0.9 percent of the nation's revenues). Men-owned firms that were equally owned by Hispanics and non-Hispanics accounted for 26,926 businesses (0.1 percent of the nation's businesses), with $19.6 billion in receipts (0.1 percent of the nation's revenues).

Non-Hispanic women-owned businesses accounted for 7.0 million businesses (25.8 percent of all businesses) and $1.1 trillion in receipts (3.8 percent of the nation's receipts). In 2007, Hispanic women-owned businesses numbered 787,914 (2.9 percent of the nation's businesses) and earned $55.7 billion in receipts (0.2 percent of the nation's receipts). In addition, women-owned businesses that were equally owned by Hispanics and non-Hispanics accounted for 8,698 businesses (less than 0.1 percent of the nation's businesses) and earned $1.4 billion in receipts (less than 0.1 percent of the nation's receipts).

In 2007, non-Hispanic-owned businesses that were equally owned by men and women accounted for 4.2 million businesses (15.3 percent of the nation's businesses), earning $1.2 trillion in receipts (4.0 percent of the nation's receipts). Hispanic-owned businesses that were equally owned by men and women numbered 244,871 businesses (0.9 percent of the nation's businesses), earning $38.6 billion in receipts (0.1 percent of the nation's receipts). In 2007, there were 207,123 businesses (0.8 percent of the nation's businesses) that were equally owned by men and women and also equally owned by Hispanics and non-Hispanics. These businesses earned $35.0 billion in receipts (0.1 percent of the nation's receipts).

Minority-owned businesses increased 45.5 percent from 2002 to 2007 from 4.0 million businesses to 5.8 million, while their receipts increased 55.0 percent. These minority-owned businesses accounted for 21.3 percent of the nation's businesses, employed 5.8 million persons (5.0 percent of the nation's employees) and generated $1.0 trillion in receipts (3.4 percent of the nation's receipts). Minority men-owned businesses numbered 2.9 million (10.7 percent of the nation's businesses), earning $710.8 billion in receipts (2.4 percent of the nation's receipts). Minority women-owned businesses numbered 2.2 million businesses (8.2 percent of the nation's businesses), earning $186.2 billion in receipts (0.6 percent of the nation's receipts). Minority-owned businesses that were equally owned by men and women accounted for 642,466 businesses (2.4 percent of the nation's businesses), earning $127.8 billion in receipts (0.4 percent of the nation's receipts).

In 2007, there were 20,100,926 nonminority-owned businesses. These nonminority-owned businesses accounted for 74.2 percent of the nation’s businesses, employed 50.1 million persons (42.7 percent of the nation's employees) and generated $9.8 trillion in receipts (32.7 percent of the nation's receipts). Nonminority men-owned businesses accounted for 10.9 million businesses (40.4 percent of the nation's businesses), and earned $7.7 trillion in receipts (25.7 percent of the nation's receipts). Nonminority women-owned businesses numbered 5.6 million businesses (20.5 percent of the nation's businesses), earning $1.0 trillion in receipts (3.4 percent of the nation's receipts). Nonminority-owned businesses that were equally owned by men and women accounted for 3.6 million businesses (13.3 percent of the nation’s businesses), earning $1.1 trillion in receipts (3.6 percent of the nation’s receipts).

In 2007, there were 434,725 businesses equally owned by minorities and nonminorities. These businesses accounted for 1.6 percent of the nation’s businesses, employed 696,450 persons (0.6 percent of the nation's employees) and generated $108.5 billion in receipts (0.4 percent of the nation's receipts). Equally minority and nonminority men-owned businesses numbered 52,952 (0.2 percent of the nation's businesses), earning $42.1 billion in receipts (0.1 percent of the nation's receipts). Equally owned minority and nonminority women-owned businesses numbered 13,722 businesses (0.1 percent of the nation's businesses), earning $2.9 billion in receipts (less than 0.1 percent of the nation's businesses). In 2007, there were 368,050 businesses (1.4 percent of the nation's businesses) that were equally owned by minorities and nonminorities and also equally owned by men and women. These businesses earned $63.4 billion in receipts (0.2 percent of the nation's receipts).

In 2007, veteran men-owned businesses accounted for 2.3 million businesses (8.6 percent of the nation's businesses) and earned $1.2 trillion in receipts (4.0 percent of the nation's receipts). Nonveteran men-owned businesses accounted for 11.4 million businesses (42.0 percent of the nation's businesses) and earned $7.1 trillion in receipts (23.6 percent of the nation's receipts). Veteran women-owned businesses numbered 97,114 (0.4 percent of the nation's businesses) and earned $15.8 billion in receipts (0.1 percent of the nation's receipts). Nonveteran women-owned businesses numbered 7.7 million (28.4 percent of the nation's businesses) and earned $1.2 trillion in receipts (3.9 percent of the nation's receipts).

Veteran-owned businesses that were equally owned by men and women numbered 29,593 (0.1 percent of the nation's businesses), earning $4.7 billion in receipts (less than 0.1 percent of the nation's receipts). Nonveteran-owned businesses that were equally owned by men and women accounted for 3.6 million businesses (13.1 percent of the nation's businesses), earning $1.0 trillion in receipts (3.5 percent of the nation's receipts). In 2007, there were 1.0 million businesses (3.7 percent of the nation's businesses) that were equally owned by men and women and also equally owned by veterans and nonveterans. These businesses earned 224.8 billion in receipts (0.7 percent of the nation's receipts).

KIND-OF-BUSINESS CHARACTERISTICS

In 2007, 30.0 percent of the nation's minority-owned businesses operated in the repair, maintenance, personal, and laundry services (NAICS 81) and health care and social services (NAICS 62) sectors. Wholesale trade (NAICS 42) and retail trade (NAICS 44-45) accounted for 39.7 percent of the receipts earned by the nation's minority-owned businesses. In 2007, 13.9 percent of the nation's equally minority and nonminority-owned businesses operated in the professional, scientific, and technical services industry (NAICS 54).

Chart 1 [pdf, 48K] shows the distribution of minority-owned firms by sector.

Industry statistics by minority status are also available by state in Table 5 [pdf, 577K; csv, 97K].

GEOGRAPHIC CHARACTERISTICS

In 2007, Hawaii had the largest proportion of minority-owned businesses in the state, with 56.9 percent. Washington, DC was second, with minority-owned businesses accounting for 40.3 percent of the state's businesses; followed by California, with minority-owned businesses accounting for 35.6 percent of its businesses. Minority-owned businesses in Hawaii generated $20.6 billion in receipts (2.0 percent of Hawaii's total business receipts), while minority-owned businesses in Washington, DC, and California, generated $5.0 billion (0.5 percent of Washington, DC's total business receipts) and $283.7 billion (27.7 percent of California's total business receipts), in receipts, respectively. Table 1 [pdf, 131K; csv, 5K] and Map 1 [pdf, 118K] show, for each state, the number of minority-owned firms as a percentage of the total number of firms in the state for 2007.

Among U.S. counties, Los Angeles County, California, had the largest number of minority-owned businesses in 2007, numbering 466,312 businesses (8.1 percent of the nation's minority-owned businesses). Miami-Dade County, Florida, was second, with 286,596 minority-owned businesses (5.0 percent of the nation's minority-owned businesses), and Harris County, Texas, was third, with 169,381 minority-owned businesses (2.9 percent of the nation's minority-owned businesses). Table 2 [pdf, 133K; csv, 6K] shows, for the 50 most populous counties, the number of minority-owned firms as a percentage of the total number of firms in 2007.

The three cities with the highest number of minority-owned businesses were New York City, with 403,812 (7.0 percent of the nation's minority-owned businesses), Los Angeles, with 181,147 (3.1 percent of the nation's minority-owned businesses), and Houston, with 106,895 (1.9 percent of the nation's minority-owned businesses). Table 3 [pdf, 133K; csv, 6K] shows, for the 50 most populous cities, the number of minority-owned businesses as a percentage of the total number of businesses in each respective city in 2007. Statistics for minority-owned businesses in the 50 most populous metropolitan statistical areas in 2007 can be found in Table 4 [pdf, 138K; csv, 8K].

EMPLOYER FIRM CHARACTERISTICS

The SBO collects data from both employer and nonemployer businesses. Employer businesses are firms with paid employees including workers on the payroll and excluding sole proprietors and partners. Nonemployer businesses are firms without paid employees including sole proprietors and partners of unincorporated businesses that do not have any other employees on the payroll.

In 2007, there were 766,533 minority-owned employer businesses, an increase of 21.7 percent from 2002. These businesses employed 5.8 million persons and had a total payroll of $164.1 billion, an increase of 24.4 percent and 42.2 percent respectively from 2002. In 2007, these businesses generated $860.5 billion in receipts, an increase of 54.3 percent from 2002. In 2007, employer businesses accounted for 13.3 percent of the total number of minority-owned businesses and 84.0 percent of minority-owned businesses' gross receipts. Average receipts for these minority-owned employer businesses in 2007 were $1.1 million; average receipts in 2002 were $885,593.

In 2007, there were 85,900 equally minority and nonminority-owned employer businesses. These businesses employed 696,450 persons, had a total payroll of $22.3 billion, and generated $92.0 billion in receipts. In 2007, these employer businesses accounted for 19.8 percent of the total number of equally minority and nonminority-owned businesses and 84.8 percent of such businesses' gross receipts. Average receipts for these equally owned minority and nonminority employer businesses in 2007 were $1.1 million.

Finally, in 2007, there were 4.3 million nonminority-owned employer businesses. These businesses employed 50.1 million persons, had a total payroll of $1.8 trillion, and generated $9.1 trillion in receipts. In 2007, these employer businesses accounted for 21.6 percent of the total number of nonminority-owned businesses and 92.3 percent of such businesses' gross receipts. Average receipts for these nonminority-owned employer businesses in 2007 were $2.1 million.

NONEMPLOYER FIRM CHARACTERISTICS

In 2007, 5.0 million minority-owned businesses had no paid employees, an increase of 50.0 percent from 2002. These nonemployer businesses generated $164.3 billion in receipts, an increase of 58.9 percent from 2002. In 2007, nonemployers accounted for 86.7 percent of the total number of minority-owned businesses and 16.0 percent of gross receipts. Average receipts for these minority-owned nonemployer businesses in 2007 were $32,910; average receipts in 2002 were $31,055.

In 2007, 348,825 equally minority and nonminority-owned businesses had no paid employees. These nonemployer businesses earned $16.5 billion in receipts. In 2007, nonemployers accounted for 80.2 percent of the total number of equally minority and nonminority-owned firms with 15.2 percent of the gross receipts of such businesses. Average receipts for these equally minority and nonminority-owned nonemployer businesses in 2007 were $47,294.

Finally, in 2007, 15.8 million nonminority-owned businesses had no paid employees. These nonemployer businesses earned $753.5 billion in receipts. In 2007, nonemployers accounted for 78.4 percent of the total number of nonminority-owned businesses and, 7.7 percent of the gross receipts of such businesses. Average receipts for these nonminority-owned nonemployer businesses in 2007 were $47,801.

DATA COMPARABILITY TO PRIOR SURVEYS

The SBO did not provide estimates of equally minority and nonminority-owned and nonminority-owned businesses in 2002.

The 2007 and 2002 SBO data were published according to the 2007 and 2002 North American Industry Classification System (NAICS) respectively. Prior to the 2002 SBO, data were published according to the Standard Industrial Classification (SIC) system. Additional changes affecting data comparability are discussed in detail in Methodology, in the section titled "Comparability of the 2007 and 2002 SBO Data."

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Source: U.S. Census Bureau | Survey of Business Owners | (301) 763-3316 | csd.sbo@census.gov Last Revised: September 29, 2014