The number of African American small business owners in the United States has increased by a staggering 400% in just a year. This was the finding of a survey from the small business financing company, Guidant Financial.
The State of a Small Business survey interviewed more than 2,600 small business owners and entrepreneurs, both male and female.
African American Small Business Statistics
The survey found that in 2018, 45% of small business owners were minority ethnic groups. This was already a dramatic increase from 2015, when the amount of minority business owners was just 15%. The biggest increase among minority small business owners however has been the huge increase in the number of African American small business owners year over year 400% increase in a year-over-year period between 20017 and 2018.
Following African Americans, Hispanics were the next largest group of minority small business owners representing 14% of the business owners interviewed for the survey. Meanwhile, Asians made up 8% of the business owners surveyed while Native Americans made up 4%.
David Nilssen, CEO of Guidant Financial, shared his enthusiasm over the rise in minority small business ownership in the United States in an announcement announcing the guidelines.
In the release, Nilssen said, “It is exciting to see the growth in minority-owned small businesses, a trend that has steadily been rising since we began our survey in 2015.
he added “Growth amongst all minorities including women is promising in America as small business ownership becomes more favorable and easier to attain. We anticipate and hope to see a continued increase as the impact of tax reform and economic growth shape small business ownership moving forward.”
The research also showed some of the reasons behind the prolific growth of minority small business ownership. Specifically, 62% of African American small business owners cited their desire to pursue their passion as the reason for starting a business. Another 53% of African American business owners said they were ready to be their own boss, and 30% said they decided to become a small business owner because an “opportunity presented itself.”
Business services have been one of the leading types of businesses African Americans have embarked on in recent years, with 13% of the participants saying they operate a business services venture. Health, fitness and beauty is another popular business niche for African American entrepreneurs, with 9% of small business owners saying they operrated this type of business.
The survey found 66% of African American business owners are looking to grow their current location.
Hispanic Small Business Owners
When it comes to Hispanic business owners, the second largest minority business ownership group in the United States, Guidant Financials’ Hispanic Business Owners 2018 Small Business Trends research revealed that 51% of Hispanic business owners were motivated into open their own business because they felt ready to be their own boss.
Entering the restaurant and food industry is a popular business venture for the Hispanic community with 11% of Hispanic small business owners operating a business in this sector. Like the African American community of small business owners, business services is another leading sector for Hispanic business owners.
On a scale of ten, with ten being the highest, Hispanics ranked their happiness at running their own business at nine. This is slightly higher than African American business owners, who ranked their happiness for having their own small business in the United States at eight.
Photo via Shutterstock
This article, “Wow! African American Small Business Ownership Up 400% in a Year, Survey Reveals” was first published on Small Business Trends