Women-Owned Businesses on the Rise

Written by: Erika H. Becker-Medina, chief, Data User Outreach & Education Branch, Economy‑Wide Statistics Division

The number of women-owned firms rose 26.8 percent from 2007 to 2012, from 7.8 million to 9.9 million businesses. In contrast, the number of all firms increased 2.0 percent during the same period, from 27.1 million to 27.6 million.

Also on the rise, the increase in receipts for women-owned firms outpaced that of all firms during the period. Women-owned firms totaled $1.4 trillion in receipts in 2012, an increase of 18.7 percent from $1.2 trillion in 2007. Receipts for all firms grew 11.7 percent during the same period — from $30.0 trillion in 2007 to $33.5 trillion.

These statistics come from the Survey of Business Owners, which provides a broad socioeconomic picture of business owners across the nation and is part of the Census Bureau’s five‑year economic census.

Even though women business ownership is on the rise, male-owned businesses continued to make up the majority, with 53.7 percent of all firms (14.8 million businesses), while female-owned businesses comprised 35.8 percent of all firms (with 9.9 million businesses). Equally male-/female-owned businesses comprised 8.9 percent (with 2.5 million businesses) and 1.6 percent (with 0.4 million businesses) were publicly held/not classifiable by gender (or ethnicity, race and veteran status).

Overall, women owned over a third of all firms in 2012, but the proportion was greater among minorities and varied by group. (See figure below.) The 8.0 million minority-owned firms were almost equally distributed between male- and female-owned, with 3.8 million firms each (0.4 million minority-owned firms were equally male-/female-owned).

Gender Distribution of Business Owners Across Demographic Groups

Among minority groups (non-white races and Hispanics), only one group had more female-owned businesses than male-owned: Black/female-owned accounted for 58.9 percent (with 1.5 million businesses) of the nation’s 2.6 million black or African American-owned businesses. While over half (52.0 percent) of Asian-owned businesses were male-owned (996,606 out of 1,917,902), there were a couple of Asian subgroups (based on nationality) that were majority women-owned.  Women-owned businesses accounted for over half (51.1 percent) of both Vietnamese- and Filipino-owned businesses (with 158,958 out of 310,864 Vietnamese-owned businesses and 98,849 out of 193,336 Filipino-owned businesses).  In contrast, white/female-owned firms made up 33.2 percent (or 7.2 million firms) and white/male-owned firms made up 57.0 percent (or 12.3 million firms) of all white-owned firms in 2012.

The proportion of women-owned businesses varied by location. The District of Columbia ranked higher than any of the 50 states in 2012 in female-business ownership.  In DC, 42.7 percent (or 27,064 out of 63,408) businesses were women owned.  This was an increase of 40.3 percent from 19,291 women-owned businesses in 2007.  Bronx County, N.Y., had the highest proportion of women-owned businesses among the 50 most populous counties in 2012, with half of all firms (50.6 percent) owned by women (68,705 out of 135,782 businesses).  Also in 2012, Detroit ranked first among the 50 most populous cities for the proportion of women-owned businesses, with 62.4 percent (or 38,576 out of 61,868 businesses).

The proportion of women-owned businesses by kind of business also varied among economic sectors. Women-owned businesses accounted for over half of all firms in the following three sectors:  health care and social assistance (NAICS 62) with 62.5 percent (or 1.6 million out of 2.6 million firms), educational services (NAICS 61) with 54.2 percent (or 0.4 million out of 0.7 million firms), and other services (NAICS 81) with 51.8 percent (or 1.9 million out of 3.6 million firms).

This is just a small snapshot of data available from the Survey of Business Owners.  These same data are available at the more specific industry level (down to the 6-digit NAICS), are broken out by employer and nonemployer firms, and include additional variables such as size of firms by receipts and employment levels.  Drawing on a sample of 1.75 million employer and nonemployer businesses, the Survey of Business Owners publishes data on the number of firms, receipts, payroll and employment, as well as the gender, ethnicity, race and veteran status of the firm owners. It is the most authoritative source of economic data on businesses by the demographic characteristics of the owner.

The first results from the 2012 Survey of Business Owners were released last year. This blog is part of an analytical series that takes a deeper dive into the Survey of Business Owners data for different demographic groups. Future blogs will focus on race, ethnicity, veteran status, and other characteristics, such as age of business owner.

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Women are Leading the Rise of Black-Owned Businesses

By Erika H. Becker-Medina, chief, Data User Outreach & Education Branch, Economy-Wide Statistics Division

Black business ownership is on the rise.

The number of black or African American-owned firms grew 34.5 percent between 2007 and 2012 — from 1.9 million to 2.6 million in 2012. In contrast, the total number of firms in the United States increased  2.0 percent during the same period, from 27.1 million in 2007 to 27.6 million in 2012. However, the proportion of black or African American-owned businesses account for 9.4 percent of all firms, which is still below the 13.1 percent black or African American share of the U.S. adult population (according to the Census Bureau’s July 1, 2012, population estimates).

These business figures are from the Survey of Business Owners, which provides a broad socio-economic picture of business owners across the nation and is part of the Census Bureau’s economic census conducted every five years.  Drawing upon a sample of 1.75 million employer and nonemployer businesses, the Survey of Business Owners collects data on firms’ receipts, payroll and employment as well as the gender, ethnicity, race and veteran status of the firm owners. It is the most authoritative source of data on businesses by the demographic characteristics of the owner. The first results from the 2012 Survey of Business Owners were released last year. This blog kicks off an analytical series that takes a deeper dive into the Survey of Business Owners data for different demographic groups.

So, who contributed to the increase of the number of black or African American-owned businesses? Women! The number of black/female-owned firms climbed 66.9 percent, from 900,000 in 2007 to 1.5 million in 2012. Additionally, these 1.5 million black/female-owned businesses accounted for 58.9 percent of the nation’s 2.6 million black or African American-owned businesses. Nationally, women owned  just over a third (35.8 percent or 9.9 million) of all firms in 2012.

Gender Distribution of Business Owners for Black or African American-Owned Firms and All Firms

The sales or receipts from these businesses tell a different story. While the number of black or African American-owned firms represented 9.4 percent of all firms, the $150.2 billion in sales generated from these firms were less than half of a percent (0.4 percent) of the total sales for all firms ($33.5 trillion) in 2012. Included in the grand total are publicly held and other firms that are not classifiable by race (or gender, ethnicity and veteran status), and with $21.6 trillion in sales, these firms amounted to almost two-thirds (64.3 percent) of the total sales for all firms in 2012.  When looking solely at firms classifiable by gender, ethnicity, race and veteran status, sales from black or African American-owned businesses made up 1.3 percent of total sales ($12.0 trillion).

This disparity is also visible between genders. Even though black or African American-owned businesses were predominantly women-owned (58.9 percent), the reverse was true for revenue. Approximately two‑thirds (66.7 percent) of the $150.2 billion in sales generated by black or African American-owned firms were from male-owned businesses ($100.1 billion) in 2012.

In addition to gender distribution, economic industries are spread differently among demographic groups. The top three moneymaking sectors for those firms classifiable by gender, ethnicity, race and veteran status were wholesale trade (NAICS 42) with $2.8 trillion, retail trade (NAICS 44-45) with $2.1 trillion, and manufacturing (NAICS 31-33) with $1.3 trillion in sales for 2012. However, neither wholesale trade nor manufacturing ranked among the top three sectors for black or African American-owned firms. Instead, health care and social assistance (NAICS 62), retail trade, and professional, scientific and technical services (NAICS 54), with $24.2 billion, $17.2 billion and $15.7 billion in revenue, respectively, were the top sales generators for this group. (NAICS stands for North American Industry Classification System.)

This is just a sliver of the data available from the Survey of Business Owners. Geographic detail, down to the economic place (a community with at least 2,500 people), is also available, as is the size of firms by employment levels and receipts. Come back to this space for additional blogs about these data!

Additional information on black or African American-owned firms:

 

 

Sectors with at least 20,000 African American/Black-Owned Businesses in the U.S.

 

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A Look at Custodial Parents and Child Support in the U.S.

Written by: Timothy Grall, Survey Statistician, Program Participation and Income Transfers Branch

Raising children can be an expensive endeavor. A child recently born and raised to adulthood in the United States can cost almost $250,000, according to the Department of Agriculture’s Center for Nutrition Policy and Promotion.

For many families, receiving cash and noncash assistance from the noncustodial parent is a critical source of supporting income. In 2014, about one-quarter of children living in families, or  22.1 million children under age 21, lived with only one of their parents. About five in six of these 13.4 million custodial parents were mothers (82.5 percent).

These data come from the 2013 Custodial Mothers and Fathers and Their Child Support report from the 2014 Current Population Survey. It provides demographic information about custodial parents, as well as child support and other income or program data.

Not all of these custodial-parent families received child support. In fact, only about half (48.7 percent) had court orders or other financial agreements in place obligating the absent parent to provide financial support. Of the 5.7 million custodial-parent families that were due child support in 2013, just 45.6 percent received all payments that were due. This was an increase from 1993 when just 36.9 percent received every payment.

custodial 1

In terms of noncash support received, about 61.7 percent of custodial parents received at least one type, such as gifts, clothes, diapers, food, etc., from the absent parent(s).

custodial 2

For the custodial parents who did receive financial child support, the annual average amount received amounted to $3,950, or approximately $330 per month. The annual average amount due was $5,770, or $480 per month. Overall, about two-thirds (68.5 percent) of the child support that was due in 2013 was received.

Child support represents a sizable proportion of personal income for custodial-parent families, ranging from 7.7 percent for parents who received a portion of the support, to 17.7 percent for those who received all child support they were due in 2013. It can be especially important for those with lower incomes. For the group of custodial-parent families with incomes below poverty and who received all support they were due, child support represented 70.3 percent of their average personal income.

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County-Level Nutrition Assistance Program Data are a Collaboration Between Government Agencies

Written by Lucinda Dalzell, Sara Stefanik and David Powers

Today, the U.S. Census Bureau released the 2014 Small Area Income and Poverty Estimates (SAIPE) for all school districts, counties, and states. These estimates are used to allocate federal funds to school districts for the next school year. Also released today were counts of Supplemental Nutrition Assistance Program participants at the county and state levels for most years between 1989 and 2013. These counts are drawn from the source data of the SAIPE, and are the only source of SNAP participant total all U.S. counties.

Formerly known as the Food Stamp Program, SNAP is a nutrition assistance program for low-income individuals and families administered by the U.S. Department of Agriculture’s Food and Nutrition Service. The Food Stamp Act of 1977 requires that states report the number of SNAP participants by program area to USDA each year. USDA receives and makes available county-level SNAP data from roughly half of all states. In order to obtain and validate county-level data for the remaining states, each year a team of Census Bureau staff members collaborates with USDA and state government agencies.

This multi-agency collaboration allows the Census Bureau to publish a full county-level SNAP data set that otherwise would not be available. This unique SNAP data set is also an important input for the SAIPE program.

By utilizing other Census Bureau population data, data users can create SNAP statistics by metropolitan statistical area status and by census region. Table 1 presents SNAP participation rates, shares of SNAP participants, and shares of population by metropolitan statistical area status and by census region. We compute the SNAP “participation rate” as the number of SNAP participants divided by the population size.

 Table 1.  SNAP and Population Data by Metro Area Status and by Regiontab1

Source:  U.S. Census Bureau. Based on authors’ calculations, using SNAP data, population estimates, and metropolitan statistical area definitions.

The 2013 SNAP participation rate is 14.4 percent in metropolitan areas and 17.3 percent in non-metropolitan areas. At the regional level, the 2013 SNAP participation rate is 13.9 percent in the Northeast, 14.4 percent in the Midwest, 16.7 percent in the South, and 12.7 percent in the West.

The SNAP data are also available in our new interactive treemap web tool for years 2013 back through 2000.

Figure 1.  Screenshot of Treemap of 2013 SNAP Participation Rates

fig1

Source:  U.S. Census Bureau, Small Area Income and Poverty Estimates (SAIPE) program

Figure 1 displays a screenshot of the interactive treemap of the 2013 SNAP participation rates.  The treemap allows the data user to click on an individual box to view the specific county-level data. The larger the box for a given county, the greater the number of people or SNAP participants (depending on the selection) who reside there. Also, each box is color-shaded to indicate the SNAP participation rate range for the corresponding county.

The county and state SNAP data sets we have discussed here are available for download from the data input area of the SAIPE program website. Data users can reach our office with any questions or comments at sehsd.saipe@census.gov or at 301-763-3193.

 

 

 

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10 Ways the American Community Survey Serves Communities

Written by: Deborah Stempowski, Chief, American Community Survey Office

Since 2005, the American Community Survey has provided annual data on more than 40 topics for our nation’s communities. Over the past 10 years, we have seen the many ways local communities, businesses, policymakers and researchers use these statistics to guide decisions that affect the daily lives of the American people.

How have you used #ACSdata over the last 10 years? We invite you to share your experiences in the comments or on Twitter. Here’s just a few examples:

1. Disability Statistics
The Gwinnett County Department of Fire and Emergency Services used American Community Survey statistics on disabilities to justify the need for the 2015 Chesney Fallen Firefighters Memorial Grant to purchase bedside alarms for deaf/hard of hearing individuals.

2. Poverty Statistics
Information on income and poverty is used to allocate funding to areas with the greatest need. Philabundance, a hunger relief organization serving the greater Philadelphia area, used poverty and Supplemental Nutrition Assistance Program statistics from the American Community Survey to map where people in need lived. Through the visualization, they found that hunger was not confined to the city limits; it had expanded into the suburbs and rural areas. Philabundance uses these statistics to guide decisions regarding hunger relief efforts.Philabundance

3. Commuting Statistics

What time do you leave for work? That’s one of the questions we ask to help both local and federal transportation planning. The South Carolina Department of Transportation uses the American Community Survey to determine the potential impact of a transportation project —  such as a new road — on the local community, residents and environment.

4. Education Statistics
Statistics help us measure changes in education over time, evaluate the educational attainment of the workforce and to identify the educational and training needs of adults. The Washington Workforce Training and Education Coordinating Board uses education and unemployment data at the local level to track employment of young workers (ages 18-24). It uses the American Community Survey as an ongoing measure to track how policies are affecting this group’s socio-economic status.

5. Veterans Statistics
Though the Department of Veterans Affairs maintains veterans’ records, American Community Survey statistics provide federal and local program planners, policymakers and researchers with additional statistics about all veterans, regardless of whether they utilize VA services. Veterans Affairs uses the American Community Survey for a variety of reasons, including assessing the eligible population for federal programs benefiting veterans, such as health care and job training. Along with other data sources, Veterans Affairs also uses the service-connected disability statistics along with veteran population numbers to assess veteran population needs and estimate usage and demand for future medical care facilities.

6. Business Creation
Census Business Builder: Small Business Edition combines both demographic data from the American Community Survey and Census Bureau economic data to help small-business owners’ make data-driven decisions when looking into opening or expanding their businesses. CB15-156 BusinessBuilder_NewsGraphic

7. Emergency Planning

Many questions on the American Community Survey help communities prepare and respond to disasters. Scientists from the National Institutes of Health use the statistics to simulate the spread of disease, allowing decision-makers to prepare for the next potential outbreak. They use the data to create “synthetic” populations and determine the effect of disease transmission.

8. Housing Statistics

Zillow uses American Community Survey statistics to add neighborhood-level characteristics to its database of more than 110 million U.S. homes. Statistics like commute times, median income and home value allows Zillow to empower consumers with knowledge about the place they call home.

9. Personal Finance

Nerd Wallet uses American Community Survey statistics to “provide clarity for life’s financial decisions.” Using hyperlocal American Community Survey statistics like age, housing cost and home value, the company creates accessible online tools and provides research to help consumers with personal finance decisions.

10. Income and Age Statistics

KaBOOM! uses American Community Survey statistics, such as median household income and the number of children 12 and under, to identify areas in need of playground equipment. It uses these statistics as a baseline to promote the concept that “Play matters for all kids.” KaBOOM! has created over 2,500 playgrounds across the country to serve more than 6.5 million children.

Posted in Data Tools, Economy, Education, Housing, Income, Population, Poverty, Transportation | 2 Comments