"Growth Areas for Minority Business Enterprise in the Twin Cities"
Growth Areas for Minority
Business Enterprises in the Twin Cities
Samuel L. Myers, Jr.
Everybody In (EI)
Business Capacity Builder’s Forum
North Hennepin Community College, The Center for Business and Technology (CBT), 7411 85th Avenue North, Brooklyn Park
MN 55445
June 10, 2015
Summary and Overview
• Overall decline in small business ownership from 2005-2009 vs. 2008-2012 in Twin Cities Metro Area
• Significant growth in minority-owned businesses
• Small number of fields with high growth potential, according to national estimates
• Great potential for employment growth in these fields
Data Sources
• Sageworks.com
• Hoovers, Inc a D &B Company. “Build a
List” [data]
• IPUMS-ACS, 2005-2009; 2008-2012
DISTRIBUTION OF SELF-
EMPLOYMENT, TWIN CITIES
Distribution of Self-Employment, 2005-2009, Twin Cities Metro Area
Source: Author’s calculations, IPUMS-ACS, 2005-2009
Distribution of Self-Employment, 2008-2012, Twin Cities Metro Area
Source: Author’s calculations, IPUMS-ACS, 2008-2012
MBEs are Growing in the Twin
Cities
Overall decline in self-employment, 2005-
2009 vs. 2008-2012
Increases in self-employment among:
◦ African Americans
◦ Asians
◦ Hispanics
Decline in American Indian selfemployment in Twin Cities but increase in entire state
Self-Employment Rates, Twin Cities Metro Area
PERCENT OF PERSONS SELF-
EMPLOYED
2005-2009 2008-2013
PERCENTAGE
CHANGE (2005-2009
VS. 2008-2013)
All
WHITE MALES
WHITE FEMALES
AFRICAN AMERICANS
AMERICAN INDIANS
HISPANICS
ASIANS
Multirace
10.2%
12.3%
7.7%
4.1%
6.7%
5.2%
7.0%
5.5%
9.8%
11.7%
7.5%
5.3%
6.4%
5.5%
7.3%
5.4%
-3.9%
-5.2%
-1.8%
28.4%
-4.2%
5.8%
3.3%
-0.4%
WHAT ARE THE FASTEST GROWING
INDUSTRIES?
http://www.forbes.com/sites/sageworks/2014/08/17/accounting-tops-most-profitbusinesses-top-list-of-money-making-industries/
https://www.sageworks.com/datareleases.aspx?article=255&title=Industries-With-The-Strongest-Earnings-Growth&date=October-5-
2014?utm_source=forbes&utm_medium=link&utm_campaign=01042015
Broad Growth Areas
• Construction and housing related industries
– Real estate
– Building construction
– Specialty trade contractors
– Architectural, Engineering and Design
• Computer-related and information technology industries
– Software publishers
– Computer systems design
MBE Share of Firms and Workers in
Twin Cities Metro Area
ALL INDUSTRIES HIGH GROWTH INDUSTRIES
1.44%
MBE SHARE OF EMPLOYEES
2.98%
MBE SHARE OF FIRMS
1.12%
1.76%
Source: Author’s computations from Hoovers.com, Dun and Bradstreet
Conclusions
• High growth areas associated with rebound of housing market and other construction
• Lower rates of self employment among minorities than white males
• Higher rates of growth of self employment among minorities (except American
Indians)
• Significant employment benefit to MBE growth in high growth industries
Thank you!
For more information contact
Blanca Monter monte064@umn.edu
Or go to: http://www.hhh.umn.edu/centers/rwc/index.html
