2002 SBO Asian-Owned Businesses News Conference
May 16, 2006
Remarks of Valerie Strang
Project Manager, 2002 Survey of Business Owners
ALL ASIAN-OWNED FIRMS (FIRMS WITH AND WITHOUT PAID EMPLOYEES)
The 2002 Survey of Business Owners defines an Asian-owned businesses as one in which Asians own 51 percent or more of the stock or equity of the business. The data in this report were collected as part of the 2002 Economic Census from a large sample of all nonfarm businesses filing 2002 tax forms as individual proprietorships, partnerships, or any type of corporation, and with receipts of $1,000 or more.
The results show that the number of Asian-owned firms increased 24 percent from 1997 to 2002, approximately twice the national average for all U.S. businesses. Receipts for Asian-owned firms rose 8 percent over the same five-year period, compared to a 22 percent increase for all U.S. firms. However, when compared to all U.S. firms excluding publicly held corporations and firms for which race ownership is indeterminate, the increase in receipts for Asian-owned firms exceeded that of the national average of 4.8 percent.
In 2002, there were slightly more than 1.1 million Asian-owned firms operating in the U.S., employing more than 2.2 million people and generating more than $326 billion in revenues.
Asian-owned firms accounted for 4.8 percent of the nation’s 23 million nonfarm businesses, 2 percent of all employees, and 1.4 percent of the $23 trillion in receipts for all U.S. firms.
FIRMS WITH PAID EMPLOYEES
Twenty-nine percent of all Asian-owned firms operated as employer businesses in 2002, increasing in number from 286,976 in 1997 to 319,295 in 2002 in 2002. The number of employer firms increased by 11.3 percent in the five-year period; the number of workers hired by these businesses increased by 2 percent; and the revenue increased 5.9 percent from $274.6 billion to $290.8 billion.
This compares to a 4 percent increase in the number of all employer firms, a 7 percent increase in the total number of workers in the U.S., and a 22 percent increase in revenue for all employer firms.
The revenues for these Asian-owned employer firms accounted for 89 percent of the total receipts for all Asian-owned firms.
The average receipts for Asian-owned employer firms were $910,775.
The number of Asian-owned employer firms in 2002 with 100 or more workers numbered 1,863. Sixty-eight percent of these firms were operating in accommodation and food services (487 firms); professional, scientific, and technical services (280 firms); health care and social assistance (249 firms); and manufacturing (241 firms).
Revenues for firms employing 100 or more workers in 2002 were $51.8 billion. Sixty-two percent of the revenue was accounted for by firms operating in wholesale trade ($14.1 billion); manufacturing ($10.6 billion); and retail trade ($7.5 billion).
There were 128 Asian-owned firms that employed 500 or more workers in 2002, and generated nearly $19 billion in business revenues.
FIRMS WITH NO PAID EMPLOYEES
Seventy-one percent of Asian-owned businesses in 2002 operated without paid employees. These sole proprietorships and mom and pop businesses increased by 29 percent from 606,614 in 1997 to 784,894 in 2002. That was more than 2 times the national average of 12 percent.
Asian-owned firms with no paid employees took in more than $35.5 billion, a 26 percent increase since 1997, higher than the national average of 19 percent.
KIND OF BUSINESS
Slightly more than 3-in-10 Asian-owned firms in 2002 operated in other services, such as personal services, and repair and maintenance(188,673); and professional, scientific, and technical services (154,235). These industries were followed by retail trade (151,551); health care and social assistance (123,689); and accommodation and food services (104,978).
Of all Asian-owned firms in 2002, retail and wholesale trade generated the most revenue--$152 billion, accounting for 47 percent of all Asian-owned business revenue.
The industries accounting for the largest share of receipts for Asian-owned employer firms included wholesale trade ($83.9 billion); retail trade ($58.4 billion); accommodation and food services ($31.1 billion); and health care and social assistance ($26.7 billion).
The industries accounting for the largest shares of the revenue for Asian-owned sole proprietorships and mom and pop businesses included retail trade ($6.6 billion); real estate and rental and leasing ($5.0 billion); other services, such as personal services, and repair and maintenance ($4.1 billion); and professional, scientific, and technical services ($3.9 billion).
RECEIPTS SIZE OF FIRM
There were over 49,578 Asian-owned firms with receipts of $1 million or more in 2002, of which 48,500 were employer businesses. The industries accounting for the largest share of these large receipts size firms in 2002 were retail trade (13,328); and wholesale trade (10,131).
These large receipts size firms generated revenues of $220.7 billion, of which $218.2 billion was accounted for by employer businesses. These firms made up only 4.5 percent of the total number of Asian-owned firms but 68 percent of the total revenue. The industries accounting for the largest share of this revenue were wholesale trade ($79.3 billion); retail trade ($43.4 billion); manufacturing ($23.6 billion); and professional, scientific, and technical services ($18.0 billion).
California and New York accounted for 46.8 percent of Asian-owned firms in 2002 and the largest increase in the number of firms since 1997.
- California led all states with 371,415 firms, an increase of 19 percent (58,459 firms) between 1997 and 2002. Thirteen percent of all businesses in the state were Asian-owned in 2002.
- New York ranked second with 145,519 firms, an increase of 19 percent (22,767 firms) since 1997. Nine percent of all businesses in the state in 2002 were Asian-owned.
- Texas ranked third with 77,980 Asian-owned businesses, an increase of 31 percent (18,662 firms) since 1997. Five percent of all businesses in Texas were Asian-owned.
- New Jersey came in fourth with 51,948, an increase of 27 percent (10,949 firms) since 1997. Seven percent of all businesses in the state were Asian-owned in 2002.
Three states, California, Texas, and Georgia, accounted for the largest increase in the number of employer firms between 1997 and 2002.
|State||Increase in number||Percent change|
Virginia, California, and Texas accounted for the largest increase in revenue for Asian-owned employer firms between since 1997 and 2002.
|State||Increase in revenue||Percent change|
Three states, California, New York, and Texas, showed the largest increase in the number of firms with no paid employees and overall revenue between 1997 and 2002.
|State||Increase in number||Increase in revenue|
|New York||22,008||$960 million|
NOTE: Before I share with you the highlights for Asian-owned firms at the county and place levels, let me preface my remarks by saying that I will refrain from making statements about the change from 1997 to 2002. This is because the estimates for Native Hawaiian- and Other Pacific Islander-owned firms were combined with the estimates for Asian-owned firms in 1997 at these geographic levels.
The counties with the highest number of Asian-owned firms in 2002 were Los Angeles County, Calif. (140,411); Queens County, NY (48,241); Orange County, CA (46,015); and Honolulu County, HI (35,376).
The cities with the highest number of Asian-owned firms in 2002 included New York, NY (112,853); Los Angeles, CA (47,714); Honolulu, HI (22,394); San Francisco, CA (19,639); San Jose, CA (16,233); and Houston, TX (15,966).
ESTIMATES BY DETAILED ASIAN SUBGROUPS
Looking at the national level and the breakdown of all Asian-owned firms by detailed subgroup, Asian Indian-owned firms made up 20.9 percent of the total firms and 27.3 percent of the revenues for all Asian-owned firms. Chinese-owned firms accounted for 26.3 percent of the firms and 32.6 percent of the revenue. Filipino-owned firms made up 11.6 percent of the firms and 4.5 percent of the business revenues for all Asian-owned firms. Japanese-owned firms accounted for 7.9 percent of the firms and 9.4 percent of all the business revenues. Korean-owned firms accounted for 14.3 percent of all Asian-owned firms and 14.4 percent of the total business revenues. Vietnamese-owned firms made up 13.3 percent of the firms and 4.8 percent of the revenues for all Asian-owned firms. Other Asian-owned firms accounted for 6.5 percent of all Asian-owned firms and 6.2 percent of the total revenues.
|Detailed Asian group||All firms 1|
|1 Includes firms with paid employees and firms with no paid employees.
2 The estimates for Asian-owned firms are based on the 2002 SBO (see Methodology). Detail may not add to total because an Asian-owned firm may be tabulated in more than one detailed group.
|Asian Indian–owned firms||231,179||20.9||89,023||27.3|
|Other Asian-owned firms||71,439||6.5||20,316||6.2|
Note: Estimates are available not only at the national level by kind-of-business in the detailed tables of the reports for these Asian subgroups but also at the state and the metropolitan area levels.
That concludes my remarks. Thank you.