Asian Indian Americans performed about average for all US small businesses between 2007 and 2010. During the four year time period, Asian Indian businesses revenue grew by 40% and employment grew by 11%. In comparison, among all small businesses, revenue grew by 39% and employment increased by 11% on average.
Across industries, Asian Indian revenue in specialty trades contracting grew fastest (62%) , followed by construction of buildings (60%) and professional, scientific and technical services (55%). The slowest growing industry was primary metals and machinery (9%).
Note that Gazelle Index will publish information separately on all minority groups. As such, we make a distinction between the following:
Asian Indian Americans (sometimes referred to as Subcontinent Asian Americans – A U.S. citizen whose origins are from India, Pakistan and Bangladesh);
Asian and Pacific American (sometimes referred to as Asian and Pacific Islanders) – A U.S. citizen whose origins are from Japan, China, Indonesia, Malaysia, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Thailand, Samoa, Guam, the U.S. Trust Territories of the Pacific or the Northern Marianas;
Native American/American Indians – Group of native people who are indigenous to the continental United States; American Indian, Eskimo, Aleut or Native Hawaiian, and regarded as such by the community of which the person claims to be a part. (see the recent post on this group)
Mission of the Gazelle Index
The Gazelle Index’s mission is to provide timely information that helps improve the performance of minority and small businesses. Consistent with that mission, this article focuses on the performance of Asian Indian American businesses between 2007 and 2010; a period that encompassed the recession and first year of the recovery.
Very little timely information is available on minority-owned businesses, even though they are the fastest growing segments of American small businesses. Some information is available on Blacks and Latinos, but almost none on Native Americans/American Indians, Asian Pacific Americans and Asian Indian Americans. The Gazelle Index is committed to closing this information gap!
Results for Asian Indian American Business Performance, 2007 – 2010
Our results are based on a sample of Asian Indian American small business federal contractors for which two year observations were available, 2007 and 2010. The sample included 427 contractors. The information below is taken from the four tables at the end of this post. EuQuant, which powers the Gazelle Index, provided the analytics on the data.
Two industries with the largest concentration of firms (see industry table below)
- Professional, scientific/technical services; 50.1%
- Internet Publishing and Telecommunications; 15.0%
Two industries with the largest average firm revenue in 2010: (see revenue table below)
- Internet Publishing and Telecommunications; $9.8 million
- Construction of Buildings; $5.8 million
Two industries with the largest average employment in 2010: (see employment table below)
- Internet Publishing and Telecommunications; 80
- Computer and electronic manufacturing; 38
Two industries with the fastest revenue growth between 2007 and 2010: (see revenue and employment growth table below)
- Specialty trades contracting; 62%
- Construction of Buildings, 60%
Two industries with the fastest employment growth between 2007 and 2010: (see revenue and employment growth table below)
- Internet Publishing and Telecommunications; 21%
- Specialty trades contracting; 20%
Growing Importance of Minority-Owned Businesses
According to the Census Bureau, minority businesses now comprise 21% of all small businesses and employ about 5% of the total workforce. Between 1982 — 2007 (the latest date for which census data is available) businesses owned by African Americans increased from 308,260 to 1.9 million or by 523%. The growth in the number of Asian-American businesses was slightly greater than was the growth of African American-owned businesses; they increased from 241,806 to 1.6 million or by 545%. Hispanics and Latinos businesses grew fastest among all minority groups (with the exception of Native Americans) – from 284,011 in 1982 to 2.3 million in 2007, or by 696%. Woman-owned businesses also increased significantly, but lagged behind the increase in minority-owned businesses; they grew from 2.6 million to 7.8 million or by 198%.