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Business Value by Race
Definition

Ratio of the average business value, in terms of sales, receipts or revenue, of white, non-Hispanic-owned businesses to businesses owned by workers of color, 2012. 

Description

Business ownership is a fundamental engine for wealth creation, and the value of these businesses, measured in annual revenue, can demonstrate the extent of the profitability of the business and the potential for wealth creation. Not only do workers of color own businesses at a lower rate than white workers, the value of businesses owned by workers of color is generally far less than that of businesses with white owners. For example, the average revenue of businesses owned by white workers in Maryland is more than four times higher than for businesses owned by workers of color.

To see the data disaggregated by race and ethnicity, click on the Data by Race tab below.

White-owned businesses in United States are valued 2.9x as high as businesses owned by people of color

Business Value by Race, 2012

StateAverage Receipts from
White-Owned
Businesses ($)
Average Receipts from
Businesses Owned by
People of Color ($)
RatioRank
United States $656,364 $224,530 2.92
Alabama $602,427 $140,165 4.30 48
Alaska $669,054 $183,233 3.65 40
Arizona $514,338 $164,118 3.13 33
Arkansas $594,208 $195,231 3.04 30
California $738,952 $269,839 2.74 24
Colorado $505,529 $188,074 2.69 23
Connecticut $864,604 $193,532 4.47 50
Delaware $769,088 $210,674 3.65 39
District of Columbia $826,621 $219,900 3.76 42
Florida $504,478 $158,727 3.18 35
Georgia $675,479 $152,563 4.43 49
Hawaii $564,205 $306,505 1.84 11
Idaho $423,064 $185,271 2.28 17
Illinois $755,836 $249,239 3.03 29
Indiana $657,019 $288,643 2.28 16
Iowa $607,089 $277,984 2.18 13
Kansas $659,713 $412,490 1.60 7
Kentucky $573,076 $250,831 2.28 18
Louisiana $902,476 $324,285 2.78 26
Maine $402,978 $178,184 2.26 15
Maryland $669,064 $163,291 4.10 46
Massachusetts $652,875 $249,968 2.61 22
Michigan $649,561 $175,471 3.70 41
Minnesota $638,154 $208,594 3.06 31
Mississippi $609,123 $74,505 8.18 51
Missouri $575,924 $182,736 3.15 34
Montana $423,057 $776,154 1.83 10
Nebraska $674,304 $206,640 3.26 36
Nevada $670,052 $203,552 3.29 38
New Hampshire $469,356 $299,426 1.57 6
New Jersey $828,414 $367,293 2.26 14
New Mexico $540,493 $181,353 2.98 28
New York $683,271 $174,538 3.91 43
North Carolina $583,466 $143,258 4.07 45
North Dakota $856,887 $855,986 1.00 1
Ohio $662,845 $223,155 2.97 27
Oklahoma $650,809 $443,873 1.47 4
Oregon $499,570 $294,061 1.70 8
Pennsylvania $643,998 $233,033 2.76 25
Rhode Island $509,993 $127,408 4.00 44
South Carolina $513,091 $155,913 3.29 37
South Dakota $594,245 $390,752 1.52 5
Tennessee $530,454 $172,753 3.07 32
Texas $871,728 $212,423 4.10 47
Utah $518,614 $253,695 2.04 12
Vermont $434,677 $299,518 1.45 3
Virginia $592,223 $248,911 2.38 19
Washington $572,497 $653,693 1.14 2
West Virginia $527,125 $303,844 1.73 9
Wisconsin $696,114 $276,266 2.52 20
Wyoming $570,145 $220,410 2.59 21

Business Value, by Race and Ethnicity 1

Business Value by Race (in 2012 dollars) ($)
StateWhite ($)Workers of Color ($)Black ($)Asian ($)Native American ($)Hispanic ($)
United States $641,742 $190,059 $73,226 $413,593 $179,855 $155,806
Alabama $598,063 $127,320 $45,458 $522,945 $365,678 $254,716
Alaska $660,729 $153,972 $134,599 $265,685 $123,590 $196,537
Arizona $502,444 $134,817 $84,902 $312,576 $102,623 $110,332
Arkansas $590,597 $176,856 $40,697 $538,559 $219,514 $314,479
California $709,657 $236,821 $108,087 $430,401 $108,796 $132,316
Colorado $498,765 $155,091 $108,866 $319,649 $151,308 $124,644
Connecticut $860,236 $173,748 $58,678 $417,213 $89,037 $128,198
Delaware $756,376 $162,833 $48,149 $407,452 $155,006
District of Columbia $817,438 $210,679 $125,370 $565,842 $337,599 $307,978
Florida $493,473 $145,385 $47,349 $351,284 $157,483
Georgia $667,068 $140,345 $84,219 $391,201 $109,608 $131,465
Hawaii $540,151 $293,565 $172,769 $335,863 $131,618 $179,451
Idaho $419,861 $150,762 $450,110 $214,998 $177,796 $109,954
Illinois $731,210 $186,863 $77,030 $401,448 $163,302 $187,165
Indiana $646,744 $222,706 $122,282 $565,676 $134,431 $186,497
Iowa $605,089 $247,460 $105,104 $377,518 $257,680 $308,160
Kansas $644,263 $299,260 $473,414 $418,886 $297,419 $160,176
Kentucky $571,436 $233,659 $100,240 $438,012 $177,237 $353,049
Louisiana $800,065 $99,984 $34,648 $313,532 $218,323 $280,816
Maine $402,361 $161,156 $240,369 $87,747 $170,596
Maryland $661,577 $151,681 $72,353 $379,402 $298,971 $143,307
Massachusetts $648,852 $228,116 $91,688 $409,318 $271,331 $147,296
Michigan $646,135 $161,543 $51,773 $458,985 $206,233 $310,725
Minnesota $634,225 $174,431 $87,380 $271,263 $187,383 $218,849
Mississippi $605,388 $66,748 $35,169 $380,952 $112,732 $161,796
Missouri $570,996 $150,382 $70,082 $355,906 $135,963 $218,204
Montana $382,962 $139,882 $85,043 $295,212 $116,690 $185,113
Nebraska $669,909 $165,955 $69,673 $226,508 $133,661 $212,102
Nevada $654,000 $171,649 $75,040 $262,883 $204,580 $177,162
New Hampshire $466,300 $243,305 $100,540 $370,443 $115,650 $206,204
New Jersey $793,890 $290,379 $114,923 $594,729 $245,281 $140,982
New Mexico $520,871 $154,415 $111,603 $391,316 $69,732 $155,321
New York $677,598 $164,558 $53,762 $333,050 $210,158 $89,992
North Carolina $577,675 $124,465 $57,038 $365,559 $108,122 $148,676
North Dakota $850,939 $752,517 $89,150 $2,833,700 $349,659
Ohio $659,497 $202,826 $117,474 $539,877 $92,602 $214,463
Oklahoma $581,148 $193,811 $64,495 $318,415 $254,159 $201,285
Oregon $487,800 $220,164 $110,930 $408,550 $122,447 $146,040
Pennsylvania $639,116 $203,268 $78,344 $435,260 $196,782 $147,224
Rhode Island $508,227 $118,289 $58,007 $349,470 $59,779
South Carolina $504,422 $127,359 $59,168 $444,337 $212,898 $182,913
South Dakota $593,019 $370,781 $80,472 $856,387 $160,842 $763,659
Tennessee $525,493 $152,475 $47,178 $574,271 $270,476 $252,958
Texas $839,279 $175,136 $69,669 $461,566 $209,306 $144,669
Utah $510,556 $187,330 $235,055 $237,717 $187,173 $196,636
Vermont $432,660 $248,112 $26,749 $415,626 $267,108
Virginia $585,194 $232,012 $102,102 $439,253 $237,246 $204,724
Washington $551,442 $563,264 $106,157 $410,766 $179,664 $1,426,507
West Virginia $523,672 $244,623 $100,486 $477,791 $82,886 $296,192
Wisconsin $693,972 $256,988 $82,826 $536,283 $144,996 $347,853
Wyoming $565,062 $160,856 $85,830 $568,588 $133,669 $112,339

"—" indicates that no data is available.

Estimates for White workers are generated for the White, non-Hispanic population. Likewise, estimates for Hispanic workers include all workers of Hispanic or Latino origin, regardless of race.

Definition

Ratio of the average business value, in terms of sales, receipts or revenue, of white, non-Hispanic-owned businesses to businesses owned by workers of color (Black or African-American; American Indian and Native Alaskan; Asian; Native Hawaiian and other Pacific Islander; Hispanic or Latino), 2012. Business ownership is defined as a business in which white workers or workers of color own 50% or more of the equity, interest or stock of the business.

Calculated by dividing the higher value by the lower value (i.e., the business value of white-owned businesses divided by those owned by workers of color, except in Montana and Washington, where minority-owned businesses have higher average values).

A ratio of 1 indicates perfect equality; the higher the ratio, the greater the inequality. 

Source

Survey of Business Owners. Washington, DC: U.S. Department of Commerce, Census Bureau, 2015.

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