Minority groups and women are increasing their business ownership at much higher rates than the national average, according to a recent U.S. Census Bureau report. Some observers of the SMB markets point to affordable technology as playing a critical role in that trend.

Just released in July 2005, the report provides trends between 1997 and 2002. While the number of U.S. businesses increased by 10% in that period to 23 million, the growth rates for minority-owned businesses include:

• Hawaiian and Pacific Islander businesses up 67%
• Black-owned businesses up 45%
• Hispanic-owned businesses up 31%
• Asian-owned businesses up 24%
• Women-owned businesses up 20%

Donald Mazzella, editorial director of Small Business Digest, isn't surprised. His organization's monthly surveys of SMBs rank lower-cost, easier-to-use technology among the top five reasons for the statistical jump. Other key growth factors include:

• Easier-to-obtain loans and lower loan rates
• Willingness of ethnic groups to patronize businesses owned by fellow minorities
• More liberal immigration rules
• Better education for opportunities

Aliza Pilar Sherman, author of Powertools for Women in Business (Entrepreneur Press, 2001), believes that wireless Internet access provides the mobility, convenience, and connectivity that SMBs need to compete. "I have no doubt technology has played a role because it creates the freedom and flexibility to launch a business, and to manage your business better," says Sherman.

Back to Top

iQ Magazine, Fourth Quarter 2005