25 Statistics on the State of BIPOC-Owned Businesses in 2021
Check out these statistics on BIPOC-owned businesses that show us the importance of supporting minority business owners.
Feb 10, 2021
6 min read
Feb 10, 2021
6 min read
Economic inequality in the United States has experienced a sharp increase in recent decades—especially between racial groups. In fact, a report found that Black and Latinx families are twice as likely to have zero or negative wealth—meaning their debt is higher than the value of their assets—compared to white families. Median white families also have 41 and 22 times more net worth than median Black and Latinx families, respectively.
In the corporate world, there were only four Black and 10 Latinx Fortune 500 CEOs in 2018. It's also worth noting that the industries most impacted by COVID-19, comprise the highest share of minority-owned businesses. Discouraging statistics like these make it apparent that there’s still a long way to go in closing racial economic inequality gaps, and why it’s imperative we support business growth and advancement within communities of color.
Since small businesses are the backbone of our economy, we rounded up 25 striking statistics to help shed a light on the current state of BIPOC-Owned businesses, and identify areas that need the most support. Establishing a successful Black- or minority-owned business comes with unique challenges itself, so we also include some encouraging statistics that help paint a hopeful future.
Minority-Owned Businesses Today
To get an idea of the current state of BIPOC-owned businesses, here are a few statistics with some of the most recent estimates.
1. 99.9% of minority-owned businesses with employees are small businesses. (SBA)
14. Prior to COVID-19, Hispanic- and Black-owned businesses were more likely to be considered "at-risk" or "distressed" than white-owned businesses—and compounded during the pandemic. (McKinsey & Company)
23. Asian-owned businesses had the largest gross receipts among minority groups in 2019 totaling $863.3 billion. (U.S. Census Bureau)
24. Minority-owned employer businesses account for over $280 billion in payroll. (SBA)
25. During COVID-19, 40% of minority-owned small businesses added new services to support their communities and employees, compared with 27% of non-minority business owners. (McKinsey & Company)
Whether you’re a business owner or a just a member of your community trying to raise awareness and encourage support for local BIPOC-owned businesses, these statistics are a place to start.
If you’re looking to grow your minority-owned business, start your free account and see how an all-in-one platform built for small businesses can help you reach your goals and inspire the next generation of entrepreneurs.