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MBE Ownership

MBE Ownership

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MBE Ownership

Minority Business Ownership Percentage by City & State

Two factors that do appear to affect the ratio in different locations are immigration and education. Many nonwhite entrepreneurs are also immigrants, who by some estimates are 80% more likely to start a business than people born in the U.S., and immigrant-heavy states like Florida, California, and New York have higher than usual levels of minority business activity. A majority of entrepreneurs have college degrees, and states where minorities have higher rates of educational attainment, including Virginia and Maryland, are also at the top of the list for minority entrepreneurship. At the local level, many of the metros with more minority-owned businesses are found in these leading states.

The data in this analysis was sourced from the U.S. Census Bureau’s Annual Business Survey and American Community Survey. To determine the locations with the most minority business owners, researchers at Smartest Dollar calculated the ratio of minority-owned businesses to the minority population. This was done by taking the percentage of businesses that are minority-owned and dividing it by the minority population share. The researchers also calculated the percentage of total employment and total payroll at minority firms as well.

Here are the metropolitan areas with the most minority business owners.

Methodology & Detailed Findings

The data in this analysis was sourced from the U.S. Census Bureau’s Annual Business Survey and American Community Survey. To determine the locations with the most minority business owners, researchers at Smartest Dollar calculated the ratio of minority-owned businesses to the minority population. This was done by taking the percentage of businesses that are minority-owned—defined by having a “race code” of “minority”—and dividing it by the minority population share. For the purpose of this analysis, a person was considered to be a member of a minority group if they were not non-Hispanic white. The researchers also calculated the percentage of total employment at minority firms and the percentage of total payroll at minority businesses. To improve relevance, only metropolitan areas with at least 100,000 residents were included. Additionally, metros were grouped into size-based cohorts: small (100,000–349,999), midsize (350,000–999,999), and large (1,000,000 or more). Data that did not satisfy the U.S. Census Bureau’s publication standards were excluded.