The biennial update, Businesses Owned by Women of Color in the United States, 2006, was underwritten by a consortium of corporations and non-profit organizations and is part of a comprehensive, multi-year research initiative launched by the Center for Women’s Business Research and The Center for Women’s Leadership at Babson College.

“Women of color are embracing entrepreneurship as a powerful path to economic independence,” said Margaret Smith, chair, Center for Women’s Business Research.  “The growth rates in sales (49% between 1997 and 2006) and employment (38% between 1997 and 2006) are phenomenal.  These figures confirm our research over the past several years documenting that women of color business owners have high aspirations for business growth.”

As of 2006, the 2.1 million businesses majority owned (51% or more) by women of color employ more than one million workers and generate more than $161 billion in sales.   These firms represent 21% of all privately-held women-owned firms in the U.S., which means that one in five women-owned firms is owned by a woman or women of color.

Between 1997 and 2006, firms majority owned by African-American women grew 147% in number of businesses, 20% in number of employees and 70% in sales.  The number of firms with employees grew by 63%.   During the same period, firms majority owned by Hispanic women grew 121% in number of businesses, 18% in number of employees and 33% in sales.   The number of firms with employees grew 26%.  Businesses majority owned by Asian American women grew 80% between 1997 and 2006, 77% in number of employees and 57% in sales.  The number of firms with employees grew 52%.

Between 1997 and 2006, the number of firms majority owned (51% or more) by women of color outpaced the growth in number of firms owned by men of color.  This was true for women of color as a whole (120% vs. 68%), as well as within each race/ethnic group (See chart at end of release).

“Despite the tremendous growth rates, we still see that the average firm earnings and average number of employees in businesses owned by women of color are dramatically less than all firms,” said Sharon Hadary, executive director, Center for Women’s Business Research.  “This is true for the aggregate of women of color entrepreneurs as well as within each race and ethnic group.  Our new research initiative, Accelerating the Growth of Businesses Owned by Women of Color, is designed to explore the challenges and barriers faced by women of color in increasing revenues and employment and to develop with these women business owners the personal, community and national action plans to address the barriers.”

A consortium of prestigious corporations and non-profit organizations that are committed to the growth and success of women-owned businesses and especially businesses owned by women of color are sponsoring the research initiative, Accelerating the Growth of Businesses Owned by Women of Color.  Corporate sponsors are Wal-Mart, Inc./Sam’s Club, UPS Capital, Wells Fargo, American Airlines, Avaya, Best Buy, IBM, , MasterCard, Principal Financial Group, Verizon and Wachovia.  Association sponsors and affiliates are the National Women’s Business Council, Level Playing Field Institute, National Association of Women Business Owners, Women Presidents’ Organization, Women’s Business Enterprise National Council, Women’s Leadership Exchange, Association of Women’s Business Centers, American China International Foundation and the Women’s Business Development Center – Philadelphia.

The full report, Businesses Owned by Women of Color in the United States, 2006, is available from the Center for Women’s Business Research for $90. (Discounts are available for Center Corporate Partners and members of affiliate associations.)  For further information, contact: Center for Women’s Business Research, 1411 K Street, NW, Suite 1350, Washington, DC 20005-3407.  Phone: 202-638-3060, ext. 710.  Email: info@womensbusinessresearch.org, Web site: www.womensbusinessresearch.org.

Click Here to View 2 Graphs <http://www.cfwbr.org/growthinnumberscharts>

Center for Women’s Business Research
The Center for Women’s Business Research provides data-driven knowledge that advances the economic, social and political impact of women business owners. We do this by setting the national agenda; creating insight on the status and achievements of women business owners; altering perceptions about the economic viability and progress of women-owned enterprises; and driving awareness of the economic and social impact of this vital business sector. Find out more online at www.womensbusinessresearch.org.

The Center for Women’s Business Research in collaboration with Babson College created Accelerating the Growth of Businesses Owned by Women of Color, a groundbreaking, multi-year research initiative to identify the barriers to business growth faced by women business owners of color and to develop action plans to overcome these barriers at the personal, community, and national levels. Findings from this national initiative will impact research participants, scholars, policymakers and corporate executives, as well as the millions of women business owners who want to know how to take their businesses to the next level. Accelerating the Growth of Businesses Owned by Women of Color will deepen our knowledge while opening opportunities for all women to grow their businesses.

Contact: Juanita M. Weaver
Director of Media & Strategic Alliances
Center for Women’s Business Research
202-638-3060 x719
jweaver@womensbusinessresearch.org