Minority-Owned Firms 1401 Constitution Ave., NW , DC 20230 Lead the Nation in Exporting www.mbda.gov

Minority-Owned Firms Add $1Trillion in Economic Output to U.S. Economy

Minority-Owned Annual Gross U.S. Minority Population  The economy of the U.S. minority population is greater than the Firms (2007) Receipts (2007) Buying Power (2009) economies of the United Kingdom ($2.1 trillion), Russia ($2.1 trillion) 5.8 Million Firms $1 Trillion $2.5 Trillion and France ($2.1 trillion).

Minority-Owned Firms Conduct Minority-Owned Firms Are More Likely Business in a Language To Export than Non-Minority Firms Other than English P e rc e nt of All Exporte r Firms P e rc e nt of Firms with 5 0 % to 10 0 % o f S a le s in E xp o rts Percent of Firms 20.0% 16.6% 5.0% 4.2% 36% 15.0% 13.8% Minority 9.4% 4.0% 3.2% 40% 10.0% Nonminority 3.0% 30% 6.9% 2.0% 1.0% 5.0% 0.8% 20% 1.0% 6% 10% 0.0% 0.0% $500K to $1million $500K to $ 1 millio n p lu s 0% $999,999 plus in $999,999 in in S a le s Minority-Owned Firms in Sales Sales Sales

Non-Minority-Owned Firms  Minority-owned firms are more likely to export compared to non-minority-owned firms  Minority-owned firms are six times more likely regardless of firm size. (36% of firms) to conduct business in a language other than English compared to non-  Among firms generating 50% to 100% of their annual $1million plus sales through exports, minority-owned firms (6% of firms). minority-owned firms were four times (4.2%) as likely to export compared to non- minority firms (1%). Minority-Owned Firms Have Strong Export Capabilities across Industries

Percent of Firms Percent of Firms

40.0% Minority 30.0%  Minority-owned firms in Minor ity 32.0% Nonminority Wholesale Trade; Nonminority 20.6% 30.0% Professional, Scientific & 19.8% Technical Services; and 20.0% Finance and Insurance 14.1% 20.0% were more likely to export 11.4% compared to non-minority 9.5% 9.7% 8.0% firms in those same 10.0% 5.9% 10.0% 4.7% industries. 3.4% 3.3% 2.6% 1.6%  Other top minority-owned 0.0% Wholesale trade Professional, Finance & firms’ exporting sectors 0.0% include Manufacturing, Manufacturing Retail trade Technology Educational scientif ic & insurance Retail Trade, Technology technical services and Educational Services. services

Minority-Owned Firms Are More Likely To Have Global Operations

 Minority-owned firms 6.0% 5.1% operating in 2007 were Minority Firms Nonminority Firms more likely to have 4.0% operations established 2.4% abroad in 14 of 19 1.8% 1.8% 1.6% 1.5% industry sectors 1.4% 1.4% 1.4% 1.3% compared to non- 2.0% 1.1% 1.0% 0.9% 0.7% 1.0% 0.8% 0.6% 0.8% 0.6% 0.5% minority firms. 0.4% 0.4% 0.6% 0.3% 0.2% 0.2%  Global operations are 0.0% supporting export activity.

trade & Note: The technology sector Arts, social services & Finance insurance leasing rental & rental Wholesale services includes firms in IT, broadcasting, technical Technology R etail trade Educational & Admini. Support & Support assistance scientific, & Construction & recreation

Professional, and telecommunications, among H ealth care& R eal estate& Remediation warehousing Manufacturing Waste Mgmt & Mgmt Waste entertainment, Tran spo rta tion other industries.

U.S. Minority-Owned Firms Enhance U.S. Global Competitive Advantage

U.S. Minority Population for Selected Ethnicities (Census, 2010) Minority-Owned Business Export Activity (Export Import Bank,1992-2009)

5.2 million 695,000 Native 1.3 million in the U.S. 4.1 million 8.4 million 129,000 1.7 million 33 milion 965,000 Korean Amerians 17.3 million 1.5 million 1.8 million in the U.S. 201,000 4.4 million Ethiopian Central Americans 3.4 million 242,000 Americans 250,000 961,000 3 million 260,000 91,300 Asian Indian 50.5 million 110,000 Ghanian Americans Americans Indonesian Americans Americans in the U.S. 600,000 1.2 million 140,000 362,000 & Chilean Americans Other Pacific Islanders 42 million in the U.S. 237,000 Argentinian Americans in the U.S.

Percent of Minority-Owned Firm Export Activity < 1% 1% to < 5% 5% to < 15% 15% to < 25%

 Minority-owned firms’ export activity spanned 41 countries, according to data from the U.S. Export Import Bank on export activity between 1992 and 2009. These data are not comprehensive of all minority-owned firms’ export activity.

 Minority-owned firms exported to China, Brazil, India, , Turkey, Saudi Arabia and Indonesia -- high growth and emerging markets identified under the President’s National Export Initiative, which calls for doubling U.S. exports in five years.

 The U.S. minority population continued to grow at a rapid pace. By 2042 minorities will represent the majority of the U.S. population.

Source: U.S. Census Bureau, 2010 American Community Survey 1-year estimates; 2010 Census Briefs released May 2011 – March 2012. U.S. Census’ An Older and More Diverse Nation by Midcentury (press release), August 2008. U.S. Census Bureau, 2007 Survey of Business Owners, released June 2011. Data on language usage, other than English, to conduct business are MBDA estimates. Data on characteristics for Minority and Non-Minority Firms are based on firms who responded to the Census survey and not the universe of firms. About 5.1% of all Minority Firms and 2.7% of all Non-Minority Firms did not know how much of their sales were generated by exports. Statistics for all groups of firms exclude publicly held, foreign-owned and not-for-profit entities. Statistics on exports by country are based on U.S. Export Import Bank data on authorized financial transactions where countries were identified between 1992 and 2009. Produced by the Minority Business Development Agency, April 2012.