The number of African American small business owners in the United States has increased by a staggering 400% in just a year. This was the finding of a survey from the small business financing company, Guidant Financial.
The State of a Small Business survey interviewed more than 2,600 small business owners and entrepreneurs, both male and female.
The survey found that in 2018, 45% of small business owners were minority ethnic groups. This was already a dramatic increase from 2015, when the amount of minority business owners was just 15%. The biggest increase among minority small business owners, however, has been the huge increase in the number of African American small business owners year over year 400% increase in a year-over-year period between 20017 and 2018.
Following African Americans, Hispanics were the next largest group of minority small business owners representing 14% of the business owners interviewed for the survey.
Meanwhile, Asians made up 8% of the business owners surveyed while Native Americans made up 4%.
David Nilssen, CEO of Guidant Financial, shared his enthusiasm over the rise in minority small business owners in the United States in an announcement announcing the guidelines.
In the release, Nilssen said, “It is exciting to see the growth in minority-owned small businesses, a trend that has steadily been rising since we began our survey in 2015.
He added “Growth amongst all minorities including women is promising in America as small business ownership becomes more favorable and easier to attain. We anticipate and hope to see a continued increase as the impact of tax reform and economic growth shape small business ownership moving forward.”
The research also showed some of the reasons behind the prolific growth of minority small business ownership. Specifically, 62% of African American small business owners cited their desire to pursue their passion as the reason for starting a business. Another 53% of African American business owners said they were ready to be their own boss, and 30% said they decided to become a small business owner because an “opportunity presented itself.”
Business services have been one of the leading types of businesses African Americans have embarked on in recent years, with 13% of the participants saying they operate a business services venture. Health, fitness, and beauty is another popular business niche for African American entrepreneurs, with 9% of small business owners saying they operated this type of business.
The survey found 66% of African American business owners are looking to grow their current location.