Abstract
This report looks at the attitudes and behavior of minority small business owners, including Asian Americans, African Americans, and Hispanic Americans (of various countries of origin, and differing lengths of residency in the United States) and their means of starting business and funding business expenses.
Mintel presents specific information about relevant attitudes and perceptions of self-employed minority business owners. In order to create advertising and marketing that resonates with target consumers, it is essential to identify those attitudes, concerns, and needs most relevant to that target group.
Loans to minorities have almost tripled since 2002 and risen in dollar value from $3.5 billion to more than $6.7 billion. Between 1997 and 2002, the growth of minority-owned firms outpaced the national rate, increasing 35% compared to 10% for all classifiable firms. Gross receipts for minority firms grew 13%, again surpassing the growth rate for all classifiable firms.
Major race and ethnic groupings include:
- White
- Black or African American
- American Indian and Alaska Native
- Asian and Pacific Islander
- Hispanic
Table of Contents
- Scope and Themes
- What you need to know
- Scope of this report
- Resources used for The Consumer sections
- Abbreviations and terms
- Abbreviations
- Terms
- Definitions
- Figure 1: Cultural heritage of Hispanic survey respondents. 2006
- Executive Summary
- Minority-owned small businesses increasing at a rapid rate
- Minority groups--overview
- Minority business owners--who are they?
- How do they start and fund their businesses?
- What do they think of their financial services provider?
- How can you reach minority business owners?
- The U.S. Minority Small Business Marketplace
- Overview of U.S. small businesses
- Overview of minority business owners
- Figure 2: Change in number and gross receipts for minority firms, 1997-2002
- Figure 3: Minority business representation, by industry sector, 2002
- Changing minority demographics
- Figure 4: Total population, by race and Hispanic origin, 2002-12
- Figure 5: U.S. minority group buying power, 2004
- Profile of minority business owners
- Figure 6: Use of financial products by minority-owned small businesses, by race/ethnicity, 2003
- Figure 7: Suppliers of financial services used by small businesses, by race/ethnicity, 2003
- Figure 8: Profile of self-employed, by race/ethnicity, gender and age, January-September 2006
- Self-employed and gender
- Self-employed and age
- Minority business owners and company size
- Figure 9: Size of firms, by number of employees--all firms vs. those for which the majority owner is non-white or Hispanic, 2003
- Figure 10: Self-employed, by company size and race/ethnicity, January-September 2006
- Figure 11: Self-employed by race/ethnicity, company size, gender and age, January-September 2006
- Figure 12: Self-employed, by income, education and race/ethnicity, January-September 2006
- Trends and opportunities for financial services companies
- Hispanics
- Figure 13: Percent change in Hispanic population--top 23 cities,--1990-2000
- Figure 14: Percentage change in metropolitan areas with the fastest-growing Hispanic populations, 2000-04
- Figure 15: Total population and Hispanic population, by age, 2006
- Figure 16: Hispanic population projections, 2010-50
- Figure 17: Hispanic heritage, language spoken, and born/not born in U.S., by company size, January-September 2006
- Black Americans
- Figure 18: Counties with the largest number of black-owned firms, 2002
- Figure 19: Industries with the most black-owned businesses, 2002
- Figure 20: States with the largest number of black-owned firms, 2002
- Figure 21: Percent change in black American population--top 23 cities, 1990-2000
- Figure 22: Percentage change in metropolitan areas with the fastest-growing black populations, 2000-04
- Figure 23: Total population and black population, by age, 2006
- Asian Americans
- Asian American small businesses
- Figure 24: Percent change Asian/Pacific Islander population--top 23 cities, 1990-2000
- Figure 25: Percentage change in metropolitan areas with the fastest-growing Asian populations, 2000-04
- Asian Americans and financial institutions
- Asian American online activity
- The Consumer Survey--Types of Businesses Surveyed
- Type of business
- Figure 26: Type of business owned, by gender--minority respondents who own a business, July 2007
- Figure 27: Type of business owned, by age--minority respondents who own a business, July 2007
- Figure 28: Type of business owned, by income--minority respondents who own a business, July 2007
- Figure 29: Type of business owned, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 30: Type of business owned, by marital status and number of people in the househole--minority respondents who own a business, July 2007
- Figure 31: Type of business owned, by education--minority respondents who own a business, July 2007
- Figure 32: Type of business owned, by Census region--minority respondents who own a business, July 2007
- Summary--who owns what
- Number of employees
- Figure 33: Number of employees, by gender--minority respondents who own a business, July 2007
- Figure 34: Number of employees, by age--minority respondents who own a business, July 2007
- Figure 35: Number of employees, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 36: Number of employees, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Figure 37: Number of employees, by education--minority respondents who own a business, July 2007
- Figure 38: Number of employees by Census region--minority respondents who own a business, July 2007
- The Consumer--Financial Details of Business Owners
- Primary source of income
- Figure 39: Is business primary or secondary source of income?, by gender, age and income--minority respondents who own a business, July 2007
- Figure 40: Is business primary or secondary source of income?, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 41: Is business primary or secondary source of income?, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Figure 42: Is business primary or secondary source of income?, by level of education--minority respondents who own a business, July 2007
- Figure 43: Is business primary or secondary source of income?, by Census region--minority respondents who own a business, July 2007
- Are respondents also homeowners?
- Figure 44: Home ownership rates, by race/ethnicity, 1996 and 2005
- Figure 45: Home ownership rates, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 46: Home ownership rates, by gender, age and income--minority respondents who own a business, July 2007
- Figure 47: Home ownership rates, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Start-up funding
- Figure 48: Primary source of funds to start business, by gender, age and income--minority respondents who own a business, July 2007
- Figure 49: Primary source of funds to start business, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 50: Primary source of funds to start business, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Figure 51: Primary source of funds to start business, by education--minority respondents who own a business, July 2007
- Financing cash flow
- Figure 52: Credit card usage by race/ethnicity and gender--self-employed, January-September 2006
- Figure 53: Types of loans held by race/ethnicity--self-employed, January-September 2006
- Figure 54: Financing cash flow needs, by gender, age and income--minority respondents who own a business, July 2007
- Figure 55: Financing cash flow needs, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 56: Financing cash flow, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Figure 57: Financing cash flow, by level of education--minority respondents who own a business, July 2007
- The Consumer--Business Owner Relationship with Financial Institutions
- Interest in financial educational programs
- Figure 58: Interest in financial educational programs, by gender, age and income--minority respondents who own a business, July 2007
- Figure 59: Interest in financial educational programs, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 60: Interest in financial educational programs, by education--minority respondents who own a business, July 2007
- Interest in financial products/services
- Figure 61: Self-employed who have life and/or health insurance, by race/ethnicity and company size, January-September 2006
- Figure 62: Interest in financial products and services, by gender, age and income--minority respondents who own a business, July 2007
- Figure 63: Interest in financial products and services, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 64: Interest in financial products and services, by education--minority respondents who own a business, July 2007
- Figure 65: Interest in financial products and services, by Census region--minority respondents who own a business, July 2007
- Reasons for choosing a financial services provider
- Figure 66: How financial institution was chosen, by gender, age and income--minority respondents who own a business, July 2007
- Figure 67: How financial institution was chosen, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 68: How financial institution was chosen, by marital status and number of persons in household--minority respondents who own a business, July 2007
- Figure 69: How financial institution was chosen, by education--minority respondents who own a business, July 2007
- Would you recommend your bank or credit union to others?
- Figure 70: Would you recommend your current primary bank or credit unions to others?, by gender, age, and income--minority respondents who own a business, July 2007
- Figure 71: Would you recommend your current primary bank or credit unions to others?, by race/ethnicity--minority respondents who own a business, July 2007
- Figure 72: Would you recommend your current primary bank or credit unions to others?, by level of education--minority respondents who own a business, July 2007
- Marketing to minorities and additional recommendations
- Marketing to Asian Americans
- Marketing to Hispanics
- Figure 73: Hispanic ad spending, by industry, 2004 and 2005
- Appendix: Industry Associations
- Appendix: Advertising and Promotion
- Figure 74: Banco Popular small business banking direct mail creative, June 2007
- Figure 75: TotalBank Totally Free Business Checking direct mail creative, August 2007
- Figure 76: Blue Cross Blue Shield of Florida, print advertisement, May 2007
- Figure 77: Capital One general small business direct mail creative, August 2007
- Figure 78: American Express Simply Cash general business credit card direct mail creative, July 2007
