Library Index :: Family and Social Issues of the United States :: Occupations - African-americans And Jobs, Hispanic Americans And Jobs, Asian-americans And Jobs, Native Americans/alaska Natives And Jobs

Occupations - Minorities In Business

African-American-Owned Businesses

According to the U.S. Census Bureau, African-American businesses represented 4 percent of nonagricultural businesses in the United States in 1997. The 1997 Survey of Minority-Owned Business Enterprises (Washington, DC, 2001), reported revenues from African-American-owned businesses reached $71.2 billion. While the Census Bureau has tracked these numbers for years, changes to the surveys prevent the comparison of results from previous years. Service firms accounted for the greatest proportion of gross receipts among African-American businesses ($25.9 billion), followed by retail businesses ($13.8 billion), and construction firms ($7.7 billion). (See Table 4.6.)

Of the largest industry groups, service-industry firms comprised 53 percent of all African-American-owned firms. Within that same group, business services and personal services represented 48 percent of the firms. Retail trade accounted for 11 percent of all African-American-owned businesses, followed by transportation, communications, and utilities, with 9 percent, and construction, with 7 percent. (See Figure 4.3.)

TABLE 4.5
Occupational employment in private industry by race/ethnic group/sex, and by industry, 2001
All industries (197,226 units)

Race/ethnic group/sex Total employment Officials & managers Professionals Technicians Sales workers Office & clerical workers Craft workers Operatives Laborers Service workers
Occupational distribution
All employees 100.0 10.8 16.5 6.1 12.1 14.3 7.8 13.0 7.7 11.7
Male 100.0 13.5 15.2 6.4 10.1 5.4 12.8 17.7 9.5 9.4
Female 100.0 7.8 18.0 5.9 14.3 24.2 2.1 7.8 5.7 14.2
White 100.0 13.1 18.8 6.5 12.6 14.0 8.5 11.9 5.7 8.9
Male 100.0 16.4 17.3 6.8 10.7 4.9 14.0 16.4 7.0 6.6
Female 100.0 9.3 20.6 6.2 14.8 24.4 2.1 6.7 4.3 11.5
Minority 100.0 5.4 11.0 5.2 10.9 14.9 6.0 15.7 12.4 18.3
Male 100.0 6.4 10.0 5.2 8.6 6.6 9.8 20.9 15.9 16.5
Female 100.0 4.5 12.1 5.2 13.3 23.6 2.1 10.3 8.8 20.2
Black 100.0 5.0 8.2 5.2 11.6 17.7 5.4 16.2 10.5 20.2
Male 100.0 5.9 6.3 4.7 9.5 7.6 9.6 23.6 14.9 17.8
Female 100.0 4.3 9.8 5.6 13.3 26.1 2.0 10.0 6.8 22.1
Hispanic 100.0 4.7 6.1 4.0 10.8 12.6 7.4 17.1 17.9 19.4
Male 100.0 5.3 5.2 4.2 8.2 5.6 11.1 21.5 20.8 18.1
Female 100.0 3.9 7.3 3.7 14.4 22.2 2.3 11.0 13.8 21.2
Asian/Pacific Islander 100.0 8.2 31.6 8.1 8.8 11.9 4.2 11.0 5.7 10.4
Male 100.0 10.2 32.6 9.3 7.4 6.8 6.1 12.2 6.1 9.3
Female 100.0 6.0 30.5 6.8 10.4 17.6 2.2 9.6 5.4 11.6
AmInd/Alaskan Native 100.0 7.1 11.1 6.5 13.6 13.9 9.6 14.8 10.1 13.2
Male 100.0 8.6 10.3 6.8 10.0 6.3 15.6 19.5 12.4 10.6
Female 100.0 5.5 12.0 6.2 17.7 22.5 2.8 9.5 7.5 16.
SOURCE: "Occupational Employment in Private Industry by Race/Ethnic Group/Sex, and by Industry, United States, 2001," in Job Patterns for Minorities and Women in Private Industry, U.S. Equal Employment Opportunity Commission, Washington, DC, 2003 [Online] http://www.eeoc.gov/stats/jobpat/2001/national.html [accessed March 1, 2004]

The largest number of African-American-owned businesses were located in New York (86,469), with gross revenues totaling nearly $5.1 billion. Some 79,110 African-American-owned firms earned $6.4 billion in California, while 60,427 such firms operated in Texas, earning nearly $6.9 billion. Table 4.7 compares ten cities with the largest number of African-American-owned firms with the overall numbers and revenues of African-American-owned firms in the state. Figure 4.4 reveals the average receipts for African-American-owned businesses in 1997.

Hispanic-Owned Businesses

In 1997 some 1.2 million nonagricultural businesses in the United States were owned by Hispanics, making up 5.8 percent of such businesses. Receipts for Hispanic-owned businesses reached $186.3 billion.

In 1997 wholesale trade businesses accounted for $40.4 billion in receipts, or 21.7 percent of receipts from Hispanic-owned businesses. Service businesses generated $39.2 billion in receipts, and retail trade businesses reached $32.3 billion in receipts. Manufacturing jobs brought in $28.7 billion. (See Table 4.8.)

While wholesale trade businesses proved to be the most lucrative for Hispanics, they were not the most plentiful Hispanic-owned businesses. Service businesses made up 42 percent of Hispanic-owned firms, followed by retail trade, other non-classified industries, and construction at 13 percent each. Wholesale trade businesses FIGURE 4.1
Gender and race of full-time federal officers with arrest and firearm authority, June 2002 made up only 3 percent of Hispanic-owned firms in 1997. (See Figure 4.5.)

The state with the most Hispanic firms was California, with 336,405 businesses and the highest receipts (nearly $52 billion) of all the states. Other states with large numbers of Hispanic-owned businesses included Texas FIGURE 4.2
Race of full-time federal officers with arrest and firearm authority, June 2002 and June 1996 (240,396 firms) with receipts of $39.5 billion, and Florida (193,902 firms) with receipts of $35.4 billion. Table 4.9 compares the ten cities with the largest number of Hispanic-owned firms with the overall numbers and revenues for Hispanic-owned firms in the state. Figure 4.6 shows the average receipts for Hispanic-owned businesses in 1997.

Asian-American Businesses

The number of nonagricultural businesses owned by Asians and Pacific Islanders (APIs) was 912,960 in 1997. Receipts totaled $306.9 billion. Wholesale trade businesses brought in the most revenue, at $105.5 billion. Retail trade businesses made $67.9 billion, followed by service businesses with $67.8 billion. (See Table 4.10.)

Service businesses made up the bulk of API-owned firms at 44 percent. Retail trade businesses were next with 21 percent, followed by non-classified industries at 10 percent and by finance, insurance, and real estate businesses at 8 percent. (See Figure 4.7.)

The state with the largest number of API-owned businesses was California with 316,048. Following were New York with 123,258 and Texas with 60,226 API-owned firms. Table 4.11 compares ten cities with the largest number of API-owned firms with the overall numbers and revenues for API-owned firms in the state. Figure 4.8 shows the average receipts per firm by industry for API-owned firms in 1997.

Native American and Alaska Native Businesses

Native Americans and Alaska Natives owned some 197,300 nonagricultural firms in the United States in 1997. Their businesses brought in $34.3 billion in receipts.

The construction industry was the most lucrative, bringing in $5.4 billion in receipts. Service businesses brought in $5.2 billion in receipts in 1997, while retail trade businesses made $4.6 billion in receipts that year. (See Table 4.12.)

The group of non-classified industries accounted for the largest percentage of most Native American and Alaska Native businesses, followed by the service industry with 17 percent. The third largest field was construction,

TABLE 4.6
Top industry receipt leaders for black-owned firms, 1997

Industry Receipts (million dollars)
Services 25,925
Business services 7,300
Health services 6,376
Engineering and management services 3,491
Personal services 2,717
Retail trade 13,803
Automotive dealers and service stations 6,857
Eating and drinking places 2,807
Miscellaneous retail 1,815
Food stores 1,514
Construction 7,712
Special trade contractors 3,949
General building contractors 2,748
Heavy construction contractors 992
SOURCE: "Table A. Top Industry Receipt Leaders for Black-Owned Firms: 1997," in Survey of Minority-Owned Business Enterprises: Black, U.S. Census Bureau, Washington, DC, 2001

FIGURE 4.3
Percent distribution of black-owned firms by industry division, 1997

TABLE 4.7
Ten cities with the largest number of black-owned firms compared to black-owned firms in state, 1997

Percent city to state
City Firms (number) Receipts (million dollars) State Firms (number) Receipts Receipts (million dollars) Firms Receipts
New York, NY 63,327 3,697 New York 86,469 5,067 73 73
Chicago, IL 23,576 2,453 Illinois 41,244 3,913 57 63
Los Angeles, CA 17,593 884 California 79,110 6,395 22 14
Houston, TX 16,855 1,419 Texas 60,427 6,857 28 21
Detroit, MI 11,282 1,359 Michigan 24,954 4,623 45 29
Washington, DC 10,909 1,335 District of Columbia X X X X
Philadelphia, PA 9,285 830 Pennsylvania 19,791 1,994 47 42
Memphis, TN 8,080 573 Tennessee 20,196 1,645 40 35
Atlanta, GA 7,853 1,012 Georgia 55,766 4,111 14 25
Dallas, TX 7,661 1,547 Texas 60,427 6,857 13 23
X = Not applicable
SOURCE: "Table E. Ten Cities with Largest Number of Black-Owned Firms Compared to Black-Owned Firms in State: 1997," in Survey of Minority-Owned Business Enterprises: Black, U.S. Census Bureau, Washington, DC, 2001

which accounted for 14 percent of Native American- and Alaska Native-owned businesses. (See Figure 4.9.)

The states with the most Native American- and Alaska Native-owned businesses were California, with 26,603; Texas, with 15,668; and Oklahoma, with 15,066. Table 4.13 compares five cities with the largest number of Native American- and Alaska Native-owned firms with the overall numbers and revenues for Native American- and Alaska Native-owned firms in the state. Figure 4.10 shows the average receipts per firm by industry for Native American and Alaska Native-owned firms in 1997.

Women-Owned Businesses

According to the Census Bureau, women-owned businesses accounted for 26 percent of nonagricultural firms in 1997. Approximately 72 percent of women-owned firms were in the service or retail trade industries.

The number of minority women starting businesses was growing faster than the number of white women starting businesses, according to the Center for Women's Business Research. The center reported that the number of minority-women-owned companies grew 31.5 percent between 1997 and 2002. The number of all women-owned companies grew only 14.3 percent between those same years.

In 2002 the center found there were 1.2 million businesses owned by women who belonged to a racial or ethnic minority group. Those businesses generated an estimated $100.6 billion in sales. Hispanic women-owned businesses accounted for 39 percent of minority-women-owned firms in 2002. Nearly a third of businesses (30 percent) FIGURE 4.4
Average receipts per firm by industry division for black-owned firms compared to all firms, 1997
[Thousand dollars] FIGURE 4.5
Percent distribution of Hispanic-owned firms by industry division, 1997 owned by women of a racial or ethnic minority group in 2002 were owned by African-American women, according to the center. Approximately 30 percent of businesses owned by minority women were API-owned businesses. Only 6 percent of minority-women-owned firms were owned by Native American or Alaska Native women.

TABLE 4.8
Top industry receipt leaders for Hispanic-owned firms, 1997

Industry Receipts (million dollars)
Wholesale Trade 40,387
Wholesale trade-nondurable goods 21,447
Wholesale trade-durable goods 18,940
Services 39,178
Business services 11,996
Health services 8,068
Engineering and management services 6,587
Auto repair, services, and parking 3,704
Retail Trade 32,280
Automotive dealers and service stations 10,905
Eating and drinking places 7,946
Food stores 5,484
Miscellaneous retail 4,617
Manufacturing 28,685
Electronic and other electric equipment 15,265
Industrial machinery and equipment 2,265
Food and kindred products 1,986
Fabricated metal products 1,890
SOURCE: "Table A. Top Industry Receipt Leaders for Hispanic-Owned Firms: 1997," in Survey of Minority-Owned Business Enterprises: Hispanic, U.S. Census Bureau, Washington, DC, 2001

FIGURE 4.6
Average receipts per firm by industry division for Hispanic-owned firms compared to all firms, 1997
[Thousand dollars]

Minority "Set-Asides"

Many levels of government, including the federal government, have "set-aside" programs that award a certain percentage of contracts to minority- and women-owned businesses. In 1989 the U.S. Supreme Court, in

TABLE 4.9
Ten cities with largest number of Hispanic-owned firms compared to Hispanic-owned firms in state, 1997

Percent city to state
City Firms (number) Receipts (million dollars) State Firms (number) Receipts (million dollars) Firms Receipts
New York, NY 75,646 6,710 New York 104,189 10,311 73 65
Los Angeles, CA 51,158 4,270 California 336,405 51,682 15 8
San Antonio, TX 28,459 4,282 Texas 240,396 39,482 12 11
Miami, FL 26,225 5,712 Florida 193,902 35,351 14 16
Houston, TX 23,661 10,024 Texas 240,396 39,482 10 25
El Paso, TX 16,925 3,525 Texas 240,396 39,482 7 9
Hialeah, FL 16,190 2,156 Florida 193,902 35,351 8 6
San Diego, CA 14,459 3,207 California 336,405 51,682 4 6
Chicago, IL 12,602 1,819 Illinois 31,010 4,815 41 38
Dallas, TX 11,451 1,185 Texas 240,396 39,482 5 3
SOURCE: "Table E. Ten Cities with Largest Number of Hispanic-Owned Firms Compared to Hispanic-Owned Firms in State: 1997," in Survey of Minority- Owned Business Enterprises: Hispanic, U.S. Census Bureau, Washington, DC, 2001

TABLE 4.10
Top industry receipt leaders for Asian- and Pacific Islander-
owned firms, 1997

Industry Receipts (million dollars)
Wholesale t rade 105,466
Wholesale trade-durable goods 64,884
Wholesale trade-nondurable goods 40,582
Retail trade 67,895
Food stores 17,247
Eating and drinking places 15,804
Automotive dealers and service stations 14,213
Services 67,762
Health services 22,358
Business services 14,732
Engineering and management services 10,876
SOURCE: "Table A. Top Industry Receipt Leaders for Asian- and Pacific Islander-Owned Firms: 1997," in Survey of Minority-Owned Business Enterprises: Asians and Pacific Islanders, U.S. Census Bureau, Washington, DC, 2001

City of Richmond v. Croson Co. (488 US 469), struck down a Richmond, Virginia, city ordinance that reserved 30 percent of city-financed construction contracts for minority-owned businesses. The Court ruled that the ordinance violated equal protection because there was no "specific" and "identified" evidence of past discrimination, "public or private," against the Richmond Minority Business Enterprise (MBE) in city contracting. The majority opinion, written by Justice Sandra Day O'Connor, also noted that the city had failed to "narrowly tailor" the remedy to accomplish any objective other than "out-right racial balancing." The opinion further stated that it was a "completely unrealistic" assumption that a 30 percent assignment to MBEs in a particular trade would be a fair representation of the community.

Minority leaders and others nationwide attacked this decision as a dramatic setback for minority businesses. Only FIGURE 4.7
Percent distribution of Asian- and Pacific Islander-owned firms by industry division, 1997 in recent years had they been able to take advantage of lucrative government contracts through "set-aside" programs. These programs developed because the cost of doing business with government agencies can be too expensive for small organizations with limited funds. Governments, especially the federal government, are often slow to pay their bills, so businesses frequently have to borrow money to bridge the gap between the delivery of goods and services that must be paid for and the time it takes the government to pay.

Acquiring government contracts can be very involved and confusing for businesses unfamiliar with the process.

TABLE 4.11
Ten cities with the largest number of Asian- and Pacific Islander-owned firms compared to Asian- and Pacific-Islander firms in
state,
1997

Percent city to state
City Firms (number) Receipts (million dollars) State Receipts (million dollars) Firms (number) Firms Receipts
New York, NY 96,767 24,728 New York 123,258 31,611 79 78
Los Angeles, CA 43,154 21,603 California 316,048 121,566 14 18
Honolulu, HI 24,247 9,052 Hawaii 50,634 14,523 48 62
San Francisco, CA 24,149 7,905 California 316,048 121,566 8 7
Houston, TX 15,717 7,057 Texas 60,226 18,849 26 37
San Jose, CA 12,292 4,490 California 316,048 121,566 4 4
Chicago, IL 11,576 3,673 Illinois 36,857 14,728 31 25
San Diego, CA 10,014 1,524 California 316,048 121,566 3 1
Seattle, WA 6,310 2,750 Washington 23,309 8,008 27 34
Westminster, CA 5,835 495 California 316,048 121,566 2 -
SOURCE: "Table E. Ten Cities with Largest Number of Asian- and Pacific Islander-Owned Firms Compared to Asian- and Pacific Islander-Owned Firms in State: 1997," in Survey of Minority-Owned Business Enterprises: Asians and Pacific Islanders, U.S. Census Bureau, Washington, DC, 2001

FIGURE 4.8
Average receipts per firm by industry division for Asian- and Pacific Islander-owned firms compared to all firms, 1997
[Thousand dollars]

In addition, minority businesses are often newer and smaller and have difficulty competing with older, larger businesses that know the process and can afford to make lower bids. Since the federal Government Services Administration (GSA) must now be self-sufficient, it began charging government contractors 1 percent of their contract, which will be used to support the GSA. As a result, the government is much more likely to grant contracts to larger contractors with larger customer bases who will contribute more to support the GSA.

TABLE 4.12
Top industry receipt leaders for American Indian- and Alaska
Native-owned firms, 1997

Industry Receipts (million dollars)
Services 5,203
Amusement and recreation services 1,196
Business services 1,185
Engineering and management services 1,004
Construction 5,385
Special trade contractors 2,564
General building contractors 1,732
Heavy construction contractors 1,071
Retail Trade 4,618
Automotive dealers and service stations 2,137
Miscellaneous retail 808
Food stores 608
SOURCE: "Table A. Top Industry Receipt Leaders for American Indian- and Alaska Native-Owned Firms: 1997," in Survey of Minority-Owned Business Enterprises: American Indians and Alaska Natives, U.S. Census Bureau, Washington, DC, 2001

CONVERSELY …

In 1989 the U.S. Department of Transportation awarded a contract for a federal highway project to a construction firm, which in turn subcontracted the job to a Disadvantaged Business Enterprise in compliance with the Subcontractor Compensation Clause. Adarand Constructors, a Colorado company whose owner was white, had submitted a low bid on part of the project, but did not get the project. Adarand subsequently sued the government, claiming the clause and the racial preference stemming from it violated the owner of Adarand's right to equal protection under the Fifth Amendment.

In 1995 the U.S. Supreme Court, in Adarand Constructors, Inc. v. Peña, (515 US 200), expressed doubt in the validity of the affirmative action programs, based on the Surface Transportation and Uniform Relocation Assistance FIGURE 4.9
Percent distribution of American Indian- and Alaska Native-owned firms by industry division, 1997 Act of 1987 (PL 100-17) that channeled $10 billion per year in construction contracts to women- and minority-owned businesses. The court, citing the need for stricter and narrower standards in determining racial preferences when awarding contracts, remanded (returned) the case to the district court for review.

In June 1997 the district court found for Adarand, ordering the Transportation Department to stop implementing the clause. The Transportation Department appealed the ruling. In the meantime, Adarand filed a second suit to challenge Colorado's certification practice regarding Disadvantaged Business Enterprises. Shortly after, Colorado changed its certification guidelines to simply require that applicants certify that they were socially disadvantaged because of racial, ethnic, or gender bias. Adarand, on the district court's advice, applied for the disadvantaged business status and received it.

Learning of Adarand's new status, the Tenth Circuit Court of Appeals dismissed the government case as moot and annulled the district court's ruling favoring Adarand. Adarand appealed to the Supreme Court. On January 12, 2000, the Supreme Court, in Adarand Constructors, Inc. v. Slater, (No. 99-295), reversed the appellate court's ruling, sending the case back for further proceedings. The Supreme Court reasoned that the Transportation Department, which had yet to approve Colorado's procedure for certifying Disadvantaged Business Enterprises, could not absolutely assure the Court that it would not revert back to its practice of racial preference.

FIGURE 4.10
Average receipts per firm by industry division for American Indian- and Alaska Native-owned firms compared to all firms, 1997
[Thousand dollars]

The Tenth Circuit Court once again ruled against Adarand. In November 2001 the Supreme Court declined to review the case any further, ending the litigation.

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