Success Rates Differ Between Minority and Non-Minority Owned Small Businesses

The SBA's Office of Advocacy has released a study that compares the success rates of minority owned small businesses against non-minority owned small businesses. Some highlights from the study are as follows:

-Survival Rates: Between 1997-2001, the small business survival rate for non-minority owned small businesses was 72.6%, whereas the survival rates for Asian and Pacific Islander owned (72.1%), Hispanic-owned (68.8%) American Indian and Native Alaskan owned (67%) and Black-owned (61%) small businesses had lower survival rates.

-Business Expansion Rates: Between 1997-2001, the business expansion rate for non-minority owned small businesses was 27.4%, whereas the business expansion rates for Hispanic-owned (34%), Asian and Pacific Islander-owned (32.1%) and Black-owned (27.8%) small businesses experienced greater success. American Indian and Native Alaskan owned small businesses expansion rates were slightly less than that of non-minority small businesses (25.7%).

-Contraction Rates: Between 1997-2001, 21.1% of non-minority businesses contracted whereas less Hispanic-owned (17.8%) and Black-owned (19.9%) small businesses contracted. The contraction rates for American Indian and Native Alaskan owned (22.4%) and Asian and Pacific Islanders owned (22.9%) small businesses suffered slightly more contraction.

For the full report, please click here. For the Office of Advocacy's summary of the report, please click here.