Black Business Performance since the Recession-Revenue Growth by Industry

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www.Gazelleindex.com seeks to provide information, data, and analyses that assist minority and small businesses in improving their performance. One of our readers’ favorite blog posts examined the 2007 – 2010 performance of companies owned by each race and ethnic group. The time frame corresponded to the Great Recession. The groups studied included Blacks, Hispanics/Latinos, Asian, women, and whites. Gazelleindex is powered by EuQuant, pronounced U-Quant. In this update, we discuss business performance since the recession ended in 2009. The analysis tracks 1,886 Black-owned firms that were federal government contractors. The same company was followed from year-to-year. A snapshot was taken in January 2010 and then again in January 2014. The results indicate the industry with the largest number of Black-owned businesses was Professional, Scientific and Technical Services (33.2%). The industry that had the highest average revenue was Electronic Product and Equipment Manufacturing ($7.0 Million). Finally, the industry that experienced the fastest revenue growth was Administrative Support Services (41.2%). Find out where your industry stacks up.

Industry Distribution
The largest industry concentration of Black-owned businesses was in Professional, Scientific and Technical Services (33.2%). This was followed in respective order by the following industries: Industrial and Commercial Construction (11.1%); Residential Construction (10.7%); Specialty Trades Contracting (9.7%); Textiles, Chemical and Metals Manufacturing (8.5%); Telecommunications, Data Processing and Internet Services (7.2%); Wholesale and Retail Trades (5.3%); Electronic and Equipment Manufacturing (5.1%); Heavy and Civil Engineering Construction (3.3%); Information, and Broadcasting -except Internet (2.2%); Administrative Support Services (1.9%); and lastly Transportation and Warehousing (0.9%).

Average Revenue
The highest average income, as of January 2014, for Black-owned businesses, organized in descending order by industry was as follows: Electronic Product and Equipment Manufacturing ($7.0 Million); Industrial and Commercial Construction ($5.4 Million); Information Broadcasting -except Internet ($5.3 million); Heavy and Civil Engineering Construction ($4.4 Million); Textiles, Chemicals and Metal Manufacturing ($4.3 Million); Telecommunications, Data Processing and Internet ($4.3 Million); Residential Construction ($4.3 Million); Wholesale and Retail Trades ($4.2 Million); Transportation and Wholesale Services ($3.8 Million); Administrative Support Services ($2.4 million); Specialty Trades Contracting ($2.1 million); Professional, Scientific and Technical Services ($2.1 million); and finally Finance, Insurance and Real Estate ($1.1 Million).

Average Revenue Growth, 2010 – 2013
For Black-owned businesses, the fastest growing industries ranked by revenue were as follows: Administrative Support Services (41.2%); Manufacturing, Textiles, Chemicals and Metals (41.1%); Telecommunications, Data Processing and Internet (35.5%); Industrial and Commercial Construction (30.4%); Heavy and Civil Engineering Construction (25.9%); Specialty Trades Contracting (24.7%); Information, Broadcasting – except Internet (17.9%); Electronic Product and Equipment Manufacturing (8.5%); Transportation and Warehousing (3.9%). Three industries experienced negative revenue growth; they were as follows: Wholesale and Retail Trades (-30.1%); Professional, Scientific and Technical Services (-19.2%); and finally, Residential Construction (-16.8%).
The Gazelleindex next post will examine the performance of Hispanic/Latino–owned businesses.

Last modified: August 24, 2017

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