Ecommerce software platform Volusion released a report on the top places in the United States with the greatest share of minority-owned startups. Their findings show that five out of the top 15 metropolitan areas with the highest share of minority-owned startups are in California, and only the top nine areas have more than 40 percent minority-owned startups.
To determine which cities have the most minority-owned startups, Volusion researchers analyzed data from the U.S. Census Bureau’s Annual Survey of Entrepreneurs (ASE) to rank the largest 50 metropolitan areas based on their proportion of minority-owned startups.
Cities with Most Minority-Owned Startups
- San Jose-Sunnyvale-Santa Clara, CA: 56.6% minority-owned startups
- Riverside-San Bernardino-Ontario, CA: 49.6% minority-owned startups
- Los Angeles-Long Beach-Anaheim, CA: 47.8% minority-owned startups
- Miami-Fort Lauderdale-West Palm Beach, FL: 46.3% minority-owned startups
- San Francisco-Oakland-Hayward, CA: 46.2% minority-owned startups
According to current U.S. Census Bureau data, minorities are underrepresented among new business ventures, otherwise known as “startups.” Although minorities comprise nearly 40 percent of the nation’s population, they account for only 27.4 percent, for a total of 140,108, of all startup businesses.
As Volume III: Women-Owned Businesses of the 2019 NAWRB Women Housing Ecosystem Report (WHER) states, while the number of women-owned businesses grew 58 percent from 2007 to 2018, firms owned by women of color grew almost three times that rate at 163 percent. As of 2018, women of color comprised 47 percent of all women-owned businesses.
Sixty-two percent of women entrepreneurs depend on their businesses as a primary source of income. In addition, 25 percent of women were likely to seek financing for their business compared to 34 percent of male entrepreneurs. Women are more likely to supplement their financing with credit cards while men are more likely to utilize equity investors.
Women of color have been the driving force behind the growth of women-owned businesses. Increasing their economic contributions in terms of workforce employment and revenue will be pivotal to building a stronger nation overall with more job opportunities in local communities and greater economic mobility for women of color and their families.
See the full list of cities with the most minority-owned startups here.
About 2019 NAWRB WHER
The 2019 NAWRB Women Housing Ecosystem Report (WHER) is the third installment of the most diverse coverage of the Housing Ecosystem with over sixty resources in six volumes: Diversity & Inclusion, Homeownership, Women-Owned Businesses, STEM, Aging Population, and Family Offices with a gender lens perspective. Learn more about each of the volumes and order a copy of the 2019 NAWRB WHER at https://www.nawrb.com/womenhousingecosystem/.