Race, Ethnicity and Business Ownership Robert W. Fairlie University - - PowerPoint PPT Presentation

Race, Ethnicity and Business Ownership Robert W. Fairlie University of California, Santa Cruz March 26, 2004 For "Entrepreneurship in the 21st Century," by the Office of Advocacy, U.S. Small Business Administration and the Kauffman Foundation

Race, Ethnicity and Business Ownership

• 1. Where are we now?
• 2. Where might we be headed?
• 3. What can we do?

Self-Employed Business Ownership Rates by Race and Ethnicity 2000 Census

10.46% 4.26% 9.88% 6.84% 7.76% 6.11% 8.56%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% White, Non- Latino African- American Asian American Indian White Latino Other Latino Multiple Races

Self-Employment Earnings by Race and Ethnicity 2000 Census

$53,244 $35,006 $52,805 $33,036 $38,225 $28,121 $40,441

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 White, Non- Latino African- American Asian American Indian White Latino Other Latino Multiple Races

Average Sales and Receipts by Race and Ethnicity of Business 1997 Economic Census: Surveys of Minority-Owned and Women-Owned Business Enteprises

$448,294 $86,478 $338,852 $174,069 $155,242

$0 $100,000 $200,000 $300,000 $400,000 $500,000 White, non-Latino African-American Asian American Indian Latino

Average Number of Employees by Race and Ethnicity of Business 1997 Economic Census: Surveys of Minority-Owned and Women-Owned Business Enteprises

3.1 0.9 2.4 1.5 1.2

0.0 1.0 2.0 3.0 4.0 5.0 White, non-Latino African-American Asian American Indian Latino

Race, Ethnicity and Business Ownership

• 1. Where are we now?
• 2. Where might we be headed?
• 3. What can we do?

Self-Employment Rates for All Workers Current Population Survey, Outgoing Rotation Group Files (1979-2000)

Black White, Non-Hispanic Hispanic Asian 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 1 9 7 9 1 9 8 1 9 8 1 1 9 8 2 1 9 8 3 1 9 8 4 1 9 8 5 1 9 8 6 1 9 8 7 1 9 8 8 1 9 8 9 1 9 9 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 Year Self-Employment Rate 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14

Figure 1 Self-Employment Rates by Race, Working Men

0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 1910 1920 1930 1940 1950 1960 1970 1980 1990

Census Year Self-Employment Rate

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

Black/White Ratio

White Self-Employment Rate Black/White Ratio Black Self-Employment Rate

Self-Employment Earnings by Race and Ethnicity 1980-2000 Census

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 1980 1990 2000

White, Non-Latino African-American Asian American Indian White Latino Other Latino

Self-Employment Earnings Growth Rates by Race and Ethnicity 1980-2000 Census

18.0% 23.0% 6.2% 17.6% 6.8% 3.6% 14.4% 16.4% 9.1% 5.1% 3.2%

• 1.7%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% White, Non-Latino African-American Asian American Indian White Latino Other Latino

1990-2000 Growth Rate 1980-2000 Avrg. Growth Rate

Race, Ethnicity and Business Ownership

• 3. What Can We Do?
• Financial Capital
• Human Capital
• Business Human Capital