Los Angeles County a Microcosm of Nation’s Diverse Collection of Business Owners

Los Angeles County, Calif., led the nation in the number of Hispanic-, Asian-, and American Indian and Alaska Native-owned firms in 2012, according to estimates released this week by the U.S. Census Bureau. It also ranked second in the number of black or African American- and Native Hawaiian and Other Pacific Islander-owned firms (after Cook County, Ill., and Honolulu County, Hawaii, respectively).

Collectively, Los Angeles County was home to 631,218 minority-owned firms: 332,967 Hispanic, 213,203 Asian, 81,563 black or African American, 11,081 American Indian and Alaska Native, and 3,798 Native Hawaiian and Other Pacific Islander. Consequently, with 3.2 percent of the nation’s total population (according to the Census Bureau’s July 1, 2012, population estimates), the county was home to 7.9 percent of its minority-owned businesses in 2012.

The majority of firms in Los Angeles County (55.0 percent) were minority-owned. This includes 29.0 percent Hispanic-owned, 18.6 percent Asian-owned, 7.1 percent black or African American-owned, 1.0 percent owned by American Indians and Alaska Natives, and 0.3 percent Native Hawaiian and Other Pacific Islander-owned.

These findings for Los Angeles County are an example of the local analysis possible using the final, revised statistics from the 2012 Survey of Business Owners released today.

Nationally, today’s findings show the number of minority-owned firms in the U.S. rose from 5.8 million in 2007 to 8.0 million in 2012. This includes a 46.3 percent increase in the number of Hispanic-owned firms over the period, from 2.3 million to 3.3 million, and a 34.5 percent rise in the number of black or African American-owned firms, from 1.9 million to 2.6 million. Additionally, the number of Asian-owned firms climbed from 1.5 million to 1.9 million, an increase of 23.8 percent. For added context, total U.S. firms increased 2.0 percent during the same period, from 27.1 million in 2007 to 27.6 million in 2012.

The 9.9 million women-owned firms in 2012 were up more than 2 million from five years earlier when there were 7.8 million women-owned businesses, a 26.8 percent increase. As a comparison, male-owned firms increased 6.8 percent from 13.9 million to 14.8 million during the same period.

New Census Web Tool Helps Business Owners Make Data Driven Decisions

New Census Web Tool Helps Business Owners Make Data Driven Decisions  The U.S. Census Bureau released Census Business Builder: Small Business Edition, a new Web tool that allows business owners and entrepreneurs to easily navigate and use key demographic and economic data to help guide their research into opening a new business or adding to an existing one. The Census Business Builder was developed with user-centered design at its core and incorporated feedback from customers and stakeholders, including small business owners, trade associations and other government agencies. The tool combines data from the American Community Survey, the economic census, County Business Patterns and other economic surveys to provide a complete business profile of an area. Business statistics include the number of establishments, employment, payroll and sales. American Community Survey statistics include population characteristics, economic characteristics and housing characteristics.

Demographic Characteristics of Business Owners and Employees: 2013

the Office of Advocacy released Demographic Characteristics of Business Owners and Employees: 2013, the second annual issue brief on business owner demographics. This year’s issue brief also includes how business owners differ from employees. This comparison is important for measuring the overall economic well-being of the economy including the economic incentives for entrepreneurship.

The issue brief is available on Advocacy’s website here.