Minority Entrepreneurship Rate

Rationale

Social cohesion is improved by equalizing the opportunity to own a business across various population groups. This indicator measures how prevalent business ownership is among non-whites in a state. The higher the prevalence of minority- owned firms in a state, the greater the likelihood that non-white families will succeed in business and accumulate business capital.

About Measure

Share of minority-owned firms relative to the minority adult population (age 18 years and older) divided by the share of total firms relative to the total adult population.

Source

U.S. Small Business Administration, Office of Advocacy. (November 2001). Minorities in business 2000. Washington, D.C.: Author. U.S. Department of Commerce, Bureau of Census. (2000). Race for the population 18 years and over. Washington, D.C.: Author.