California Home to Growing Number of MWBEs

California Home to Growing Number of MWBEs

Minority- and women-owned businesses (MWBEs) in California and elsewhere in the United States experienced tremendous growth in their numbers and receipts between 1997 and 2002, according to new business tabulations from the Survey of Business Owners (SBO) released by the U.S. Census Bureau.

For example, the number of Hispanic-owned firms in the state grew by more than 91,000, or 27 percent, during the five-year period, from 336,400 in 1997 to 427,800 in 2002. The number of Asian-owned firms increased by nearly 60,000, reaching 372,200 in 2002. California had almost 34,000 more black-owned businesses in 2002 (113,000) than in 1997 (79,100), and 14,000 more American Indian- and Alaska native-owned businesses in 2002 (40,500) than in 1997 (26,600).

Businesses owned by women increased by 24 percent, or 171,100, during the five-year period, growing from 700,500 in 1997 to 871,600 in 2002.

Nationwide, the number of minority- and women-owned businesses grew at a higher rate than the national average. For example, the number of all businesses nationwide increased by 10 percent between 1997 and 2002, to a total of 23 million. However, the growth rate among minority- and women-owned firms was at least twice the national average, ranging from 67 percent for native Hawaiian and other Pacific islander-owned firms to 20 percent for firms owned by women. Data for American Indians and Alaska natives are not directly comparable because the 2002 survey identified businesses owned by a tribal entity. These businesses are considered to be government-owned entities and are therefore excluded from the estimates.

Other California highlights:

* The number of all businesses in the state increased by 13 percent during the five-year period, to 2,908,900 in 2002.

* Revenues generated by minority- and women-owned firms in California showed significant increases between 1997 and 2002. Sales and receipts for black-owned businesses increased by 59 percent, to $10.2 billion in 2002. Revenues for Hispanic-owned firms were up 12 percent to $57.8 billion, while businesses owned by Asians had increases of 8 percent to $130.3 billion. Receipts for women-owned firms grew from $121.2 billion in 1997 to $140.9 billion in 2002, a 16 percent increase.

* Receipts for all businesses in the state totaled $2.8 trillion in 2002, or 28 percent higher than in 1997. Nationwide, receipts were up by 22 percent.

The SBO defines business ownership as having 51 percent or more of the equity, interest or stock in the business. Respondents to the 2002 SBO were asked to report the percent of ownership, gender, Hispanic or non-Hispanic origin and race for up to three primary owners (Hispanics may be of any race).

Separate reports for minority- and women-owned businesses will be issued over the next year and will include more detailed data on the number of firms, sales and receipts, number of paid employees and annual payroll. Data will also be presented by geographic area, industry and size of business. Subsequently, a separate publication will be issued highlighting characteristics of all business owners, including non-majority owners.