Racial business ownership statistics show the scale and diversity of employer firms owned by racial and ethnic groups in the United States. Census Bureau estimates provide counts of firms, receipts, employees, payroll, industry concentration, and reported profitability for different reference years. The figures below focus on employer businesses, which have paid employees; they do not cover nonemployer firms.
Contents
- Ownership baseline in 2020
- Economic footprint in 2020
- Ownership baseline in 2021
- Economic footprint in 2021
- Industry concentration
- Reported profitability in 2022
- How to read these estimates
Ownership baseline in 2020
The Census Bureau estimated that about 1.15 million employer firms, or 19.9% of all employer businesses, were minority-owned in 2020. The 2020 estimates come from the Annual Business Survey reference year 2020; the related release used survey collection in 2021. Census Bureau, “Census Bureau Releases New Data on Minority-Owned, Veteran-Owned and Women-Owned Businesses”
Among the named race and ethnicity groups, Asian-owned employer businesses were the largest group by firm count, with 612,194 businesses. There were 140,918 Black or African American-owned employer businesses and 40,392 American Indian and Alaska Native-owned employer businesses. Native Hawaiian and Other Pacific Islander-owned employer businesses numbered 8,822.
The Census Bureau counted 375,256 Hispanic-owned employer businesses in 2020, equal to about 6.5% of all businesses. Hispanic is an ethnicity classification in Census reporting, while the other named groups in these statistics are race classifications. Hispanic-owned employer businesses increased 8.2%, from 346,836 in 2019 to 375,256 in 2020. These ownership counts and the change between 2019 and 2020 are reported by the Census Bureau.
Receipts also differed substantially across groups. Asian-owned businesses had the largest estimated receipts among minority race groups in 2020, at $841.1 billion. Industry distribution helps put that figure in context: about 23.7% of Asian-owned businesses, or 145,714 firms, operated in Accommodation and Food Services. Among Black-owned businesses, about 27.5%, or 38,819 firms, operated in Health Care and Social Assistance.
Economic footprint in 2020
Employer ownership measures include more than the number of firms. Receipts describe annual business revenue reported in the Census estimates, while employee and payroll measures indicate the firms’ labor-market footprint.
Black-owned employer businesses generated $141.1 billion in annual receipts in 2020. They had about 1.3 million employees and paid about $42.2 billion in annual payroll. Together, these measures describe businesses that were employers at a meaningful scale, not only ownership records.
American Indian and Alaska Native-owned employer businesses generated $39.7 billion in receipts in 2020. They had 243,523 employees and paid about $9.6 billion in annual payroll. Native Hawaiian and Other Pacific Islander-owned employer businesses generated approximately $8.8 billion in receipts, had 60,129 employees, and paid $2.3 billion in annual payroll.
Hispanic-owned employer businesses generated $472.3 billion in annual receipts in 2020. They had 2.9 million employees and paid about $105.6 billion in annual payroll. These 2020 receipts, employment, and payroll estimates come from the Census Bureau’s Annual Business Survey release.
Ownership baseline in 2021
For reference year 2021, the Census Bureau estimated approximately 1.2 million minority-owned employer firms, or 21% of all employer firms. The 2021 figures came from the Annual Business Survey release associated with survey collection in 2022. Census Bureau, “Census Bureau Releases New Data on Minority-Owned, Veteran-Owned and Women-Owned Businesses”
Asian-owned employer businesses numbered 642,950 in 2021. There were 161,031 Black or African American-owned employer businesses, 48,582 American Indian and Alaska Native-owned employer businesses, and 8,324 Native Hawaiian and Other Pacific Islander-owned employer businesses.
Hispanic-owned employer businesses numbered 406,086 in 2021, or about 6.9% of all businesses. The count increased 8.2% from 375,256 in 2020 to 406,086 in 2021. The year-to-year change is a reported Census estimate and should be read with the reference year and survey context in mind.
The 2021 data also show continued concentration in particular industries. About 24% of Asian-owned businesses, or 151,933 firms, were in Accommodation and Food Services. About 28% of Black-owned businesses, or 45,015 firms, were in Health Care and Social Assistance.
Economic footprint in 2021
Asian-owned employer businesses had approximately $1.0 trillion in receipts in 2021, the largest total among minority race groups in that year’s Census estimates. Black-owned employer businesses generated $183.3 billion in annual receipts, had 1.4 million employees, and paid about $53.6 billion in annual payroll.
American Indian and Alaska Native-owned employer businesses generated $54.4 billion in receipts in 2021. They had 307,933 employees and paid approximately $12.9 billion in annual payroll. Native Hawaiian and Other Pacific Islander-owned employer businesses generated approximately $10.5 billion in receipts, had 53,277 employees, and paid $2.5 billion in annual payroll.
Hispanic-owned employer businesses generated $572.9 billion in annual receipts in 2021. They had 3.0 million employees and paid approximately $124.4 billion in annual payroll. The 2021 economic-footprint figures are from the Census Bureau’s 2021 employer-business characteristics release.
The following table places selected 2021 measures side by side. Values described as approximately or about retain that level of precision.
| Owner group | Employer businesses | Annual receipts | Employees | Annual payroll |
|---|---|---|---|---|
| Black or African American | 161,031 | $183.3 billion | 1.4 million | $53.6 billion |
| American Indian and Alaska Native | 48,582 | $54.4 billion | 307,933 | $12.9 billion |
| Native Hawaiian and Other Pacific Islander | 8,324 | $10.5 billion | 53,277 | $2.5 billion |
| Hispanic | 406,086 | $572.9 billion | 3.0 million | $124.4 billion |
Asian-owned firms had approximately $1.0 trillion in receipts in 2021, but the supplied Census summary does not provide a corresponding employee or payroll figure here.
Industry concentration
Industry concentration identifies where many employer firms in a group operated; it does not mean every firm in that group worked in the named industry. Between 2020 and 2021, the number of Asian-owned employer businesses in Accommodation and Food Services rose from 145,714 to 151,933. Their share increased from 23.7% to 24%.
Black-owned employer businesses in Health Care and Social Assistance increased from 38,819 in 2020 to 45,015 in 2021. The share rose from 27.5% to 28%. These changes come from the 2020 and 2021 Annual Business Survey releases and 2021 employer-business characteristics data.
The two examples illustrate different kinds of concentration. Asian-owned businesses had a large count and share in Accommodation and Food Services, while the reported share for Black-owned businesses was higher in Health Care and Social Assistance. The percentages describe the distribution of employer firms within each ownership group, not the percentage of all firms in an industry.
Reported profitability in 2022
The Census Bureau’s 2022 profitability graphic reports the share of employer firms that reported profits, losses, or breaking even. The graphic uses 2023 Annual Business Survey data for reference year 2022, defines business ownership as 51% or more of stock or equity, and labels the estimates preliminary. Census Bureau, “Profitability of Employer Firms by Race of Owner(s) in 2022”
| Owner group | Reported profits | Reported losses | Broke even |
|---|---|---|---|
| White | 66.9% | 18.9% | 14.2% |
| Black or African American | 49.5% | 30.2% | 20.3% |
| American Indian and Alaska Native | 59.1% | 22.1% | 18.9% |
| Asian | 60.7% | 21.3% | 18.0% |
| Native Hawaiian and Other Pacific Islander | 55.0% | 20.7% | 24.3% |
Among White-owned employer firms in 2022, 66.9% reported profits, 18.9% reported losses, and 14.2% broke even. Among Black or African American-owned employer firms, 49.5% reported profits, 30.2% reported losses, and 20.3% broke even.
For American Indian and Alaska Native-owned employer firms, 59.1% reported profits, 22.1% reported losses, and 18.9% broke even. Among Asian-owned employer firms, 60.7% reported profits, 21.3% reported losses, and 18.0% broke even. Native Hawaiian and Other Pacific Islander-owned employer firms reported profits at a 55.0% rate, losses at 20.7%, and breaking even at 24.3%.
How to read these estimates
These statistics describe employer-firm estimates for their stated reference years. The 2020 and 2021 releases use survey collection years 2021 and 2022, respectively, so the collection year is not the same as the business reference year. The profitability figures use 2023 survey data for the 2022 reference year and are preliminary.
The categories also require care. Hispanic is an ethnicity classification in Census reporting, whereas Asian, Black or African American, American Indian and Alaska Native, and Native Hawaiian and Other Pacific Islander are race classifications. The employer-firm figures exclude nonemployer firms. The Census Bureau notes that the Annual Business Survey and the Nonemployer Statistics by Demographics program together provide a more comprehensive picture of businesses by owner demographics.