Bruce P. Corrie, PhD, Economist, Concordia University
The Annual Survey of Entrepreneurs, 2014 is a new database that provides an annual snapshot on the state of entrepreneurship. Minnesota firms show interesting trends, especially when we disaggregate the data by race and gender. Below are some trends and data for firms with paid employees.
- Minority businesses are evenly split between start-ups, and medium and long term businesses in Minnesota. Most Nonminority firms have been in business over 10 years.
- In terms of revenue most minority firms have receipts between $100,000 and $1 million. Nonminority firms have a larger presence in both firms with receipts less than $100,000 and those firms with receipts greater than $1 million.
- There are differences between minority groups both in years in business and receipts. American Indian firms have the highest percentage of firms in existence for more than 10 years. Black and Asian owned businesses have the largest presence among start-ups.
- Black owned firms have the largest presence among minority firms with receipts greater than $1 million. American Indian firms have the largest presence among firms less than $100,000.
- More than 40 percent of female owned firms have been in business over 10 years. Female owned firms had the largest presence among the three groups (minority, nonminority and female) in firms with revenue less than $100,000 and the lowest presence among firms with revenue greater than $1 million.
The policy implications of the data are:
- Understand differences within minority business communities and between minority and nonminority businesses. These differences point to various pathways to business growth and development.
- Learn from the experiences of both the businesses with revenue greater than a million dollars and those with revenue less than $100,000. Why does this pattern differ by ethnic group and gender?
- What about businesses in the middle? What resources are available to build their capacity. Our study with African immigrant entrepreneurs revealed a top need to grow markets.
- What do we know about micro business start-ups and what helps them succeed?
- Early entrepreneurship is more pronounced in Asian and Black owned businesses – what do we know about this trend?
- The African immigrant study pointed to the unique experiences of female entrepreneurs and the current data shows that this group of entrepreneurs need special policy attention.
- The data is only on firms with paid employees. We need to know more about firms that move from home-based to store fronts pr from sole owners to having paid employees.
with paid employees
|Greater than 10 years in Business||3-10 years in Business||Less Than 3 years in Business||Total Number of Employer Firms||Receipts <100k||Receipts>100k<1 million||Receipts >1 million|
Annual Survey of Entrepreneurs, 2014. Percentages calculated by author. Corrie (2017)