Black Business Performance since the Recession-Revenue Growth by Industry

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.

About Thomas_Danny_Boston 28 Articles
Danny Boston is an economist, writer, and entrepreneur. He is professor emeritus of Economics and International Affairs at Georgia Tech and for 25 years served as CEO of EuQuant, an economic research company. Today, Danny publishes the blog GazelleIndex.

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