The State of Minority- and Women- Owned ... - Cleveland.com

Market-Based Disparities in Business Formation and Business Owner Earnings
trillion (column 2). Of these 26.29 million firms, 5.19 million had one or more employees
(column 3) and these 5.19 million firms had overall sales and receipts of $10.015 trillion
(column 4). Column (5) shows a total of 56.63 million employees on the payroll of these 5.19
million firms and a total annual payroll expense of $1.941 trillion (column 6).
The remaining rows in Panel A provide comparable statistics for nonminority male-owned,
women-owned, and minority-owned firms. For example, Table 5.13 shows that there were 1.9
million African American-owned firms counted in the SBO, and that these 1.9 million firms
registered $135.7 billion in sales and receipts. It also shows that 106,566 of these African
American-owned firms had one or more employees, and that they employed a total of 909,552
workers with an annual payroll total of $23.33 billion.
Panel A of Table 5.14 provides comparable information for Ohio. The SBO counted 869,343
firms in Ohio, of which 443,907 were nonminority male-owned, 249,180 were female-owned;
52,136 were African American-owned; 9,722 were Hispanic-owned; 18,198 were Asian-owned;
and 2,989 were Native American-owned.
Panel B in each Table converts the figures in Panel A to percentage distributions within each
column. For example, Column (1) in Panel B of Table 5.14 shows that nonminority male-owned
firms were 51.06 percent of all firms in Ohio, female-owned firms were 28.66 percent, and
African American-owned firms were 6.00 percent. Additionally, 1.12 percent of firms were
Hispanic-owned, 2.09 percent were Asian-owned, and 0.34 percent were Native Americanowned.
Column (2) in Panel B provides the same percentage distribution for overall sales and receipts.
Table 5.14, for example, shows that although nonminority male-owned firms were 51.06 percent
of all firms, they accounted for 78.03 percent of all sales and receipts. African American-owned
firms, in contrast, were 6.00 percent of all firms in Ohio, but they accounted for only 1.22
percent of all sales and receipts. Similarly, women accounted for 28.66 percent of all firms in
Ohio but earned only 10.64 percent of sales and receipts.
Similar results are obtained when the survey results are restricted to firms with one or more paid
employees. Column (3) in Table 5.14, for example, shows that nonminority male-owned firms
accounted for 63.19 percent of all employer firms but earned 79.42 percent of all sales and
receipts. African American-owned employer firms accounted for 1.69 percent of all employer
firms but only 1.05 percent of all sales and receipts. Women-owned employer firms accounted
for 16.16 percent of all employer firms but only 10.12 percent of all sales and receipts.
Large disparities between the fraction of firms that are minority- or women-owned and their
fraction of sales and receipts in Ohio are observed not only for African Americans and women,
but also for Hispanic-owned firms, Asian-owned firms, and Native American-owned firms.
The disparity indices are presented in Panel C of each table. Disparity indices of approximately
80 percent or less indicate disparate impact consistent with business discrimination (0 percent
being complete disparity and 100 percent being full parity). In Ohio (Table 5.14), the sales and
receipts disparity indices (in columns 2 and 4) fall at or beneath the 80 percent threshold in 9 out
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