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2023 Vital Signs: The Health of Minority-OwnedSmall Businesses

“We synthesized publicly available data from the Federal Reserve’s biennial Small Business Credit Survey, US Census Bureau, and other various sources to develop 10 key findings. With the recent release of new data, we have updated the report with new facts and statistics on minority-owned businesses.”

As detailed below, we found that:

AMOUNT: Minority-owned businesses are growing faster but are still vastly underrepresented compared to their population.

EMPLOYEES: The vast majority of minority-owned businesses employ fewer than 20 people.

LOCATION: Minority-owned businesses are still more clustered but are seeing new geographic shifts.

INDUSTRY: There is somewhat less industry concentration among minority-owned firms than in previous years.

REVENUE: Minority-owned businesses are now even more likely to have revenue under $100,000.

CREDIT: Black and Hispanic-owned businesses are more likely to be labeled a high credit risk.

FINANCING: Minority-owned businesses are all more likely to be shut out of financing.

COVID: Women-owned and minority-owned businesses were hit much harder during the pandemic.

VENTURE: Female founders are receiving more venture capital, but still far less than men.

CONTRACTING: Women and people of color continue to get a small slice of government procurement.

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