Survey of Business Owners (SBO)

Survey of Business Owners - Hispanic-Owned Firms: 2007

SUMMARY OF FINDINGS

Hispanics owned 2.3 million nonfarm U.S. businesses operating in the fifty states and the District of Columbia in 2007, an increase of 43.7 percent from 2002. These Hispanic-owned firms accounted for 8.3 percent of all nonfarm businesses in the United States, 1.6 percent of total employment and 1.1 percent of total receipts. In addition, 242,766 nonfarm U.S. businesses were equally (50-percent/50-percent) owned by both Hispanics and non-Hispanics. (This group was counted as "Non-Hispanic" in 2002.)

Non-Hispanics owned 23.8 million nonfarm U.S. businesses in 2007, an increase of 14.5 percent from 2002. Of the 27.1 million nonfarm U.S. businesses, 804,037 firms were publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status.

These data come from the U.S. Census Bureau's 2007 Survey of Business Owners (SBO) and were collected as part of the 2007 Economic Census. The SBO includes a sample of more than 2.3 million nonfarm businesses filing 2007 tax forms as individual proprietorships, partnerships, or any type of corporation, and with receipts of $1,000 or more.

In the SBO, businesses are defined by ethnicity as either:

• All firms classifiable by gender, ethnicity, race, and veteran status, in which companies could be:
  • Hispanic-owned. Hispanics of any race own 51 percent or more of the stock or equity of the business.
  • Equally Hispanic-/non-Hispanic-owned. Ownership of the stock or equity of the business is 50-percent Hispanic and 50-percent non-Hispanic.
  • Non-Hispanic-owned. Non-Hispanics of any race own 51 percent or more of the stock or equity of the business.
• Publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status.

Table A [xls, 23K] shows the changes in the number of firms and value of receipts for all U.S. businesses from 2002 to 2007 by ethnicity.

Based on standards developed by both the Executive and Legislative Branches of the Federal Government, Hispanic-owned businesses are also classified by detailed ethnicity into the following subgroups:

• Mexican-owned. Fifty-one percent or more owned by persons of Mexican, Mexican American, or Chicano origin.
• Puerto Rican-owned. Fifty-one percent or more owned by persons of Puerto Rican origin.
• Cuban-owned. Fifty-one percent or more owned by persons of Cuban origin.
• Other Hispanic-owned. Fifty-one percent or more owned by persons of Other Hispanic, Latino, or Spanish origin [For example, Argentinean, Colombian, Dominican, Nicaraguan, Salvadoran, or Spaniard.]

Among the Hispanic subgroups, Mexicans owned the greatest number of Hispanic businesses (1.0 million or 45.8 percent) nationwide, with receipts of $155.5 billion (45.1 percent of all Hispanic-owned firm receipts). The write-in category of "Other Hispanic, Latino or Spanish" was second with 778,757 firms owned by persons of other Hispanic origin (34.5 percent). Receipts of these firms totaled $113.9 billion (33.0 percent). Cubans owned 251,070 firms (11.1 percent), with receipts of $51.3 billion (14.8 percent). Puerto Ricans owned 156,546 firms (6.9 percent) with receipts of $16.7 billion (4.8 percent).

Table B [xls, 23K] shows the changes in the number of firms and value of receipts for all U.S. businesses from 2002 to 2007 by detailed ethnicity.

KIND-OF-BUSINESS CHARACTERISTICS

In 2007, 30.0 percent of Hispanic-owned U.S. firms operated in construction (NAICS 23) and repair, maintenance, personal, and laundry services (NAICS 81) sectors. Hispanic-owned U.S. firms accounted for 10.4 percent of all U.S. businesses in these sectors. Chart A [pdf, 65K] shows the distribution of Hispanic-owned U.S. firms by sector. Wholesale trade (NAICS 42), construction (NAICS 23), and retail trade (NAICS 44-45) accounted for 50.8 percent of Hispanic-owned business revenue.

Among Mexican-owned U.S. firms, 32.3 percent were in the construction (NAICS 23) and repair, maintenance, personal, and laundry services ( NAICS 81) sectors. Mexican-owned U.S. firms accounted for 5.1 percent of all U.S. businesses in these sectors. Chart B [pdf, 65K] shows the distribution of Mexican-owned U.S. firms by sector. Construction (NAICS 23), retail trade (NAICS 44-45) and wholesale trade (NAICS 42) accounted for 47.9 percent of Mexican-owned business revenue.

Among Puerto Rican-owned U.S. firms, 28.8 percent were in the health care and social assistance (NAICS 62) and repair, maintenance, personal, and laundry services (NAICS 81) sectors. Puerto Rican-owned U.S. firms accounted for 0.8 percent of all U.S. businesses in these sectors. Chart C [pdf, 65K] shows the distribution of Puerto Rican-owned U.S. firms by sector.

Among Cuban-owned U.S. firms, 28.4 percent were in the construction (NAICS 23) and repair, maintenance, personal, and laundry services (NAICS 81) sectors. Cuban-owned U.S. firms accounted for 1.1 percent of all U.S. businesses in these sectors. Chart D [pdf, 64K] shows the distribution of Cuban-owned U.S. firms by sector. Wholesale trade (NAICS 42), retail trade (NAICS 44-45) and construction (NAICS 23) accounted for 53.0 percent of Cuban-owned business revenue.

Among other Hispanic-owned U.S. firms, 30.5 percent were in the repair, maintenance, personal, and laundry services (NAICS 81) and administrative and support and waste management and remediation services (NAICS 56) sectors. Other Hispanic-owned U.S. firms accounted for 4.5 percent of all U.S. businesses in these sectors. Chart E [pdf, 65K] shows the distribution of other Hispanic-owned U.S. firms by sector. Wholesale trade (NAICS 42), retail trade (NAICS 44-45) and construction (NAICS 23) accounted for 55.8 percent of other Hispanic-owned business revenue.

GEOGRAPHIC CHARACTERISTICS

Hispanic-Owned U.S. Businesses

Table C [xls, 32K] shows that among states, California had the largest number of Hispanic-owned U.S. firms at 566,567 (25.1 percent of all Hispanic-owned U.S. firms), with receipts of $81.1 billion (23.5 percent of all Hispanic-owned U.S. firm receipts). Florida had 450,185 Hispanic-owned U.S. firms (19.9 percent), with receipts of $72.9 billion (21.1 percent). Texas had 447,486 Hispanic-owned U.S. firms (19.8 percent), with receipts of $62.1 billion (18.0 percent).

Table D [xls, 15K], Table E [xls, 14K], and Table F [xls, 15K], respectively, show the ten combined statistical areas, five counties, and ten cities with the largest number of Hispanic-owned U.S. firms.

Table G [xls, 26K] shows that New Mexico (at 23.6 percent) had the largest ratio of Hispanic-owned U.S. firms to all firms. Florida ranked second with Hispanic-owned U.S. firms constituting 22.4 percent of the state total. Texas was third at 20.7 percent. California was fourth and Arizona fifth at 16.5 and 10.7 percent respectively.

Map A [pdf, 215K] shows the percent change between 2002 and 2007 in the number of Hispanic-owned U.S. firms by state.

Mexican-Owned U.S. Businesses

Table H [xls, 32K] shows that 70.5 percent of Mexican-owned U.S. businesses were located in either California or Texas. California had the most Mexican-owned U.S. firms at 373,681 (36.1 percent of all Mexican-owned U.S. firms), with receipts of $56.0 billion (36.0 percent of all Mexican-owned U.S. firm receipts). Texas had 356,706 Mexican-owned U.S. firms (34.4 percent), with receipts of $49.1 billion (31.6 percent). Arizona had 42,447 Mexican-owned U.S. firms (4.1 percent), with receipts of $6.4 billion (4.1 percent).

Table I [xls, 16K], Table J [xls, 15K], and Table K [xls, 15K], respectively, show the eleven combined statistical areas, six counties, and ten cities with the largest number of Mexican-owned U.S. firms.

Texas (at 16.5 percent) had the largest ratio of Mexican-owned U.S. firms to total firms. New Mexico ranked second with Mexican-owned U.S. firms constituting 15.1 percent of the state total. California was third with 10.9 percent of its firms Mexican-owned. Arizona was fourth and Nevada fifth at 8.6 and 4.9 percent respectively.

Map B [pdf, 214K] shows the percent change between 2002 and 2007 in the number of Mexican-owned U.S. firms by state.

Puerto Rican-Owned Businesses

Table L [xls, 32K] shows that 49.1 percent of Puerto Rican-owned U.S. firms were located in Florida or New York. Florida had the most Puerto Rican-owned U.S. firms at 42,418 (27.1 percent of all Puerto Rican-owned U.S. firms), with receipts of $3.4 billion (20.3 percent of all Puerto Rican-owned U.S. firm receipts). New York had 34,410 Puerto Rican-owned U.S. firms (22.0 percent), with receipts of $3.1 billion (18.7 percent). California had 13,157 Puerto Rican-owned U.S. firms (8.4 percent), with receipts of $1.3 billion (7.6 percent).

Table M [xls, 15K], Table N [xls, 14K], and Table O [xls, 15K], respectively, show the seven combined statistical areas, two counties, and six cities with the largest number of Puerto Rican-owned U.S. firms.

Florida (at 2.1 percent) had the largest ratio of Puerto Rican-owned U.S. firms to total firms. New York ranked second with Puerto Rican-owned U.S. firms constituting 1.8 percent of the state total. New Jersey was third with 1.5 percent of its firms Puerto Rican-owned. Connecticut was fourth with 1.2 percent.

Map C [pdf, 215K] shows the percent change between 2002 and 2007 in the number of Puerto Rican-owned U.S. firms by state.

Cuban-Owned Businesses

Table P [xls, 33K] shows that 74.2 percent of Cuban-owned U.S. businesses (186,312) were located in Florida. These businesses had receipts of $34.6 billion (67.5 percent of all Cuban-owned U.S. firm receipts). California had 15,476 Cuban-owned U.S. firms (6.2 percent of all Cuban-owned U.S. firms), with receipts of $2.9 billion (5.7 percent of all Cuban-owned U.S. firm receipts). Texas had 10,472 Cuban-owned U.S. firms (4.2 percent), with receipts of $2.3 billion (4.4 percent).

Table Q [xls, 14K], Table R [xls, 15K], and Table S [xls, 14K], respectively, show the three combined statistical areas, six counties, and two cities with the largest number of Cuban-owned U.S. firms.

Florida (at 9.3 percent) had the largest ratio of Cuban-owned U.S. firms to total firms. New Jersey ranked second with Cuban-owned U.S. firms constituting 0.9 percent of the state total.

Map D [pdf, 214K] shows the percent change between 2002 and 2007 in the number of Cuban-owned U.S. firms by state.

Other Hispanic-Owned Businesses

Table T [xls, 32K] shows that 60.2 percent of other Hispanic-owned U.S. businesses were located in Florida, California, and New York. Florida had the most other Hispanic-owned U.S. firms at 186,242 (23.9 percent of all other Hispanic-owned U.S. firms), with receipts of $29.4 billion (25.9 percent of all other Hispanic-owned firm receipts). California had 154,666 other Hispanic-owned U.S. firms (19.9 percent), with receipts of $19.0 billion (16.7 percent). New York had 128,085 other Hispanic-owned U.S. firms (16.5 percent), with receipts of $11.4 billion (10.0 percent).

Table U [xls, 15K], Table V [xls, 15K], and Table W [xls, 14K], respectively, show the ten combined statistical areas, eight counties, and five cities with the largest number of other Hispanic-owned U.S. firms.

Florida (at 9.3 percent) had the largest ratio of other Hispanic-owned U.S. firms to total firms. New Mexico ranked second with other Hispanic-owned U.S. firms constituting 7.5 percent of the state total. New York was third at 6.5 percent and New Jersey was fourth at 5.7 percent.

Map E [pdf, 215K] shows the percent change between 2002 and 2007 in the number of other Hispanic-owned U.S. firms by state.

EMPLOYER FIRM CHARACTERISTICS

The SBO collects data from both employer and nonemployer businesses. Employer businesses are firms with paid employees including workers on the payroll and excluding sole proprietors and partners. Nonemployer businesses are firms without paid employees including sole proprietors and partners of unincorporated businesses that do not have any other employees on the payroll.

In 2007, there were 249,168 Hispanic-owned U.S. employer firms, an increase of 24.9 percent from 2002. These firms employed 1.9 million persons and had a total payroll of $54.6 billion, an increase of 25.7 percent and 48.7 percent respectively from 2002. In 2007, these firms generated $274.5 billion in receipts, an increase of 52.9 percent. In 2007, employer firms accounted for 11.0 percent of the total number of Hispanic-owned U.S. firms and 79.5 percent of Hispanic-owned U.S. firms' gross receipts. Average receipts for these Hispanic-owned U.S. employer firms in 2007 were $1.1 million; average receipts in 2002 were $899,600.

In 2007, there were 119,289 Mexican-owned U.S. employer firms which employed 1.1 million persons and had a total payroll of $26.7 billion. These numbers represented increases of 33.6 percent, 45.8 percent, and 67.7 percent respectively from 2002. In 2007, these firms generated $121.4 billion in receipts, an increase of 56.9 percent. Employer firms accounted for 11.5 percent of the total number of Mexican-owned U.S. firms and 78.0 percent of Mexican-owned U.S. firms' gross receipts. Average receipts for these Mexican-owned U.S. employer firms in 2007 were $1.0 million; average receipts in 2002 were $866,537.

In 2007, there were 14,460 Puerto Rican-owned U.S. employer firms which employed 97,434 persons and had a total payroll of $3.0 billion. These numbers represented increases of 22.2 percent, 26.1 percent, and 43.8 percent respectively from 2002. In 2007, these firms generated $12.6 billion in receipts, an increase of 31.6 percent.^[1] Employer firms accounted for 9.2 percent of the total number of Puerto Rican-owned U.S. firms and 75.6 percent of Puerto Rican-owned U.S. firms' gross receipts. Average receipts for these Puerto Rican-owned U.S. employer firms in 2007 were $871,698; average receipts in 2002 were $809,702.

In 2007, there were 32,329 Cuban-owned U.S. employer firms employing 242,993 persons with a total payroll of $8.1 billion. These numbers represented increases of 16.0 percent, 17.9 percent, and 36.7 percent respectively from 2002. In 2007, these firms generated $43.4 billion in receipts, an increase of 40.5 percent. Employer firms accounted for 12.9 percent of the total number of Cuban-owned U.S. firms and 84.7 percent of Cuban-owned U.S. firms' gross receipts. Average receipts for these Cuban-owned U.S. employer firms in 2007 were $1.3 million; average receipts in 2002 were $1.1 million.

Finally, in 2007, there were 77,222 other Hispanic-owned U.S. employer firms employing 496,870 persons, with a total payroll of $15.4 billion. These numbers represented an increase of 14.7 percent, a decrease of 1.3 percent^[2], and an increase of 27.8 percent respectively from 2002. In 2007, these firms generated $90.5 billion in receipts, an increase of 53.1 percent. Employer firms accounted for 9.9 percent of the total number of other Hispanic-owned U.S. firms and 79.5 percent of other Hispanic-owned U.S. firms' gross receipts. Average receipts for these other Hispanic-owned U.S. employer firms in 2007 were $1.2 million; average receipts in 2002 were $878,299.

NONEMPLOYER FIRM CHARACTERISTICS

In 2007, 2.0 million Hispanic-owned U.S. firms had no paid employees, an increase of 46.4 percent from 2002. These nonemployer firms generated $70.7 billion in receipts, an increase of 66.6 percent from 2002. In 2007, nonemployers accounted for 89.0 percent of the total number of Hispanic-owned U.S. firms and 20.5 percent of gross receipts. Average receipts for these Hispanic-owned U.S. nonemployer firms in 2007 were $35,149; average receipts in 2002 were $30,875.

In 2007, there were 916,458 Mexican-owned U.S. nonemployer firms generating $34.2 billion in receipts. These numbers represented increases of 49.8 and 76.4 percent respectively from 2002. In 2007, nonemployers accounted for 88.5 percent of the total number of Mexican-owned U.S. firms and 22.0 percent of gross receipts. Average receipts for these Mexican-owned U.S. nonemployer firms in 2007 were $37,268; average receipts in 2002 were $31,655.

In 2007, there were 142,086 Puerto Rican-owned U.S. nonemployer firms generating $4.1 billion in receipts. These numbers represented increases of 45.5 and 47.5 percent respectively from 2002. In 2007, nonemployers accounted for 90.8 percent of the total number of Puerto Rican-owned U.S. firms and 24.4 percent of gross receipts. Average receipts for these Puerto Rican-owned U.S. nonemployer firms in 2007 were $28,667; average receipts in 2002 were $28,282.

In 2007, there were 218,741 Cuban-owned U.S. nonemployer firms generating $7.8 billion in receipts (increases of 76.7 and 72.4 percent respectively from 2002). In 2007, nonemployers accounted for 87.1 percent of the total number of Cuban-owned U.S. firms and 15.3 percent of gross receipts. Average receipts for these Cuban-owned U.S. nonemployer firms in 2007 were $35,809; average receipts in 2002 were $36,692.

Finally, in 2007, there were 701,535 other Hispanic-owned nonemployer U.S. firms generating $23.4 billion in receipts (increases of 32.7 and 54.9 percent respectively from 2002). In 2007, nonemployers accounted for 90.1 percent of the total number of other Hispanic-owned U.S. firms and 20.5 percent of gross receipts. Average receipts for these other Hispanic-owned U.S. nonemployer firms in 2007 were $33,321; average receipts in 2002 were $28,530.

DATA COMPARABILITY TO PRIOR SURVEYS

The 2007 and 2002 SBO data were published according to the 2007 and 2002 North American Industry Classification System (NAICS) respectively. Prior to the 2002 SBO, data were published according to the Standard Industrial Classification (SIC) system. Additional changes affecting data comparability are discussed in detail in Methodology, in the section titled "Comparability of the 2007 and 2002 SBO Data."

^[1] Statistically, for Puerto Rican-owned employer U.S. firms, the percent change in receipts from 2002 is not significantly different from zero.
^[2] Statistically, for other Hispanic-owned employer U.S. firms, the percent change in employees from 2002 is not significantly different from zero.