Minority Business Ownership

Date posted: 09/29/2009

The United States Economic Census measures the number of minority- and women-owned firms in relation to universal firms. Universal firms are all businesses, without regard to the race, ethnicity, or gender of the business owners. Total minority-owned firms refer to businesses owned by Blacks, Hispanics, Asians, Pacific Islanders, American Indians, and Alaska Natives (United States 2002 Economic Census).

Changes in the 2002 Census affect its comparability with the 1997 Census. For more information, see Comparability of the 2002 and 1997 SBO Data. At issue are:

• How female-ownership is determined - asked to provide percentage of ownership as well as gender;
• Update of Hispanic or Latino origin and racial response categories to meet the Office of Management and Budget (OMB) guidelines - owners can self-identify with more than one racial group, so it is possible for a business to be classified and counted in more than one racial group; and
• The 1997 survey included the Native Hawaiian- and Other Pacific Islander-Owned Firms with the Asian- and Pacific Islander-Owned Firms, while the 2002 survey separated the groups.

Please note: Because various sources report ethnic/racial categories differently, it is the policy of COMPASS to utilize the categories designed by the data source.

What this chart shows: Percentage of Minority-Owned Firms, United States, Colorado, Larimer County & Fort Collins* - 2002

*Data for Loveland were not available.

Data Source: 2002 United States Economic Census - Surveys of Minority- and Women-Owned Business Enterprises

See data table

What these data tell us:

In 2002, the United States had a much higher percentage of minority-owned firms than Colorado and Larimer County. This could be due to the fact that Colorado, Larimer County and Fort Collins have lower percentages of minorities in the total population than the nation as a whole (See Population by Ethnicity for 2000).

What this chart shows: Percentage of Minority-Owned Firms vs. Percentage of Minority Population, Top 5 States, Colorado & Larimer County - 2002

Data Source:

• 2002 United States Economic Census - Survey of Minority-Owned Business Enterprises
• United States Census Bureau (estimated population as of July 1, 2002)

See data table

What these data tell us:

Compared to the five states with the highest percentage of minority-owned firms in 2002, both Colorado and Larimer County had fewer minority-owned firms and lower percentages of minorities in the total population. On average, the percent of minority firms for Colorado and Larimer County was approximately three times lower than that of the top three states, California, Texas and Florida.

What this chart shows: Firm Ownership by Race/Ethnicity, Larimer County - 2002

*Black data were not reported (there were fewer than 100 Black-owned firms in Larimer County)

Data Source: 2002 United States Economic Census - Surveys of Minority- and Women-Owned Business Enterprises

See data table

What these data tell us:

In 2002, 95.9% of Larimer County firms were owned by White residents. Of the 1,199 firms in Larimer County owned by minorities, 724 (60.4%) were owned by Hispanics. This is not surprising as Hispanics represented 67.8% of Larimer County's total minority population in 2002. (United States Census Archives) Together, American Indian and Asian firm ownership constituted 1.6% of total firms in the county.

Additional Information:

The United States Economic Census is updated every five years. Historical information from 1987, 1992, and 1997 is available on their website. The 2007 Preliminary Minority Summary will be released in July 2010. The 2007 Survey of Business Owners - Minority Statistics will be released in May 2011.

On Compass -

• Employment & Average Wages by Industry
• Language Spoken at Home
• Dropout Rates
• High School Graduation Rates
• Population by Race & Ethnicity
• Unemployment Rate

Outside Compass -

• United States Department of Commerce - Minority Business Development Agency (MBDA)
  • The State of Minority Business - published by the MBDA, analyzes the 2002 Survey of Minority-Owned Business Enterprises

Standards or Targets: N/A

Data Tables:

Minority-Owned Firms - 2002

Area	Number of Total Firms	Number of Minority Firms	Percent Minority Firms
United States	22,974,655	3,958,610	17.2%
Colorado	464,982	44,218	9.5%
Larimer County	29,471	1,259	4.3%
Fort Collins	12,914	628	4.9%

See chart

Minority-Owned Firms & Minority Population - 2002

Area	Number of Total Firms	Number Minority Firms	Percent Minority Firms	Percent Minority Population
California	2,908,758	915,514	31.5%	54.1%
Texas	1,734,509	490,919	28.3%	48.8%
New York	1,707,168	422,879	24.8%	38.2%
Florida	1,539,207	409,604	26.6%	35.7%
Illinois	958,120	153,217	16.0%	32.8%
Colorado	464,982	44,218	9.5%	26.5%
Larimer County	29,471	1,259	4.3%	13.2%

See chart

Firm Ownership by Race/Ethnicity, Larimer County - 2002

Race/Ethnicity	Number of Firms	Percent of Total Firms
White	28,272	95.9%
Total Minority	1,199	4.1%
American Indian	179	0.6%
Asian	296	1.0%
Hispanic	724	2.5%

*Data for Black business-owners were not provided.

See chart

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