Building Legacies: Asian Indian-Owned Businesses in U.S.
The number of U.S. businesses owned by people of Asian origin increased 40.4 percent to 1.5 million between 2002 and 2007, increasing at more than twice the national rate, according to U.S. Census Bureau data released recently. These businesses also generated $507.6 billion in receipts, a 55.4 percent increase from 2002. California had the largest number of Asian Indian-owned firms at 58,995 and 19.1 percent of all Asian Indian-owned firms with receipts grossing $29.1 billion. A Siliconeer report.
(Above): A veteran Asian-Indian entrepreneur, Badru Valani is founder of Milpitas, Calif.-based AVEX Funding, a mortgage bank founded in 2003. The company has expertise in home purchase loans and refinance loans as a direct lender who offers FHA loans, Jumbo loans and Interest-only loans. [Siliconeer photo]
Asian-owned businesses continued to be one of the strongest segments of our nation’s economy, bringing in more than half a trillion dollars in sales in 2007 and employing more than 2.8 million people,” said Census Bureau Deputy Director Thomas Mesenbourg.
These findings come from the U.S. Census Bureau’s 2007 Survey of Business Owners and were collected as part of the 2007 Economic Census.
The data cover businesses owned by seven Asian groups — people of Asian Indian, Chinese, Filipino, Japanese, Korean, Vietnamese and other Asian origin. Preliminary national and state data were released in July 2010.
Among all Asian-owned businesses, Asian Indian-owned businesses accounted for 19.9 percent; Chinese, 27.3 percent; Filipino, 10.5 percent; Japanese, 7.0 percent; Korean, 12.4 percent; Vietnamese, 14.8 percent; and other Asian, 9.9 percent.
Growth in the number of Asian-owned businesses by Asian subgroup include Asian Indian (38.2 percent), Chinese (48.1 percent), Filipino (30.4 percent), Japanese (24.7 percent), Korean (22.1 percent), Vietnamese (55.8 percent) and other Asian (72.3 percent).
The Survey of Business Owners defines Asian-owned businesses as firms in which Asian Indians, Chinese, Filipinos, Japanese, Koreans, Vietnamese or other Asians own 51 percent or more of the equity, interest or stock of the business.
Among the detailed Asian groups, Asian Indians owned 308,514 firms (19.9 percent of all Asian-owned firms), with receipts of $152.5 billion (30.0 percent of all Asian-owned firm receipts). Chinese owned 423,609 firms (27.3 percent), with receipts of $142.8 billion (28.1 percent)
(Right): Chart showing the kinds of business of Asian Indian Firms. NOTE: Firms with more than one domestic establishment are counted in each industry in which they operated but only once in the total for all sectors. [Source: U.S. Census Bureau, 2007 Survey of Business Owners - Released April 28, 2011]
Kind of Business. Among Asian Indian-owned U.S. firms, 48.9 percent were in the professional, scientific, and technical services sector; the retail trade sector; and the health care and social assistance sector. Asian Indian-owned U.S. firms accounted for 1.7 percent of all U.S. businesses in these sectors.
Retail trade, wholesale trade, and professional, scientific, and technical services accounted for 59.1 percent of Asian Indian-owned business revenue.
Employer Firms. The SBO collects data from both employer and nonemployer businesses. Employer businesses are firms with paid employees, including workers on the payroll and excluding sole proprietors and partners. Nonemployer businesses are firms without paid employees, including sole proprietors and partners of unincorporated businesses that do not have any other employees on the payroll.
In 2007, there were 109,196 Asian Indian-owned employer firms, an increase of 32.5 percent from 2002.
These firms employed 850,191 persons, an increase of 39.4 percent from 2002, and had a total payroll of $26.8 billion, an increase of 52.4 percent from 2002.
In 2007, these firms generated $140.9 billion in receipts, an increase of 75.9 percent from 2002.
In 2007, employer firms accounted for 35.4 percent of the total number of Asian Indian-owned firms and 92.4 percent of Asian Indian-owned firms’ receipts. Average receipts for these Asian Indian-owned employer firms in 2007 were $1.3 million.
Non-employer Firms. In 2007, 199,318 Asian Indian-owned firms had no paid employees, an increase of 41.6 percent from 2002. These nonemployer firms generated $11.5 billion in receipts, an increase of 44.4 percent from 2002. In 2007, nonemployers accounted for 64.6 percent of the total number of Asian Indian-owned firms and 7.6 percent of receipts. Average receipts for these Asian Indian-owned nonemployer firms in 2007 were $57,928.
Size of Firm. The SBO tabulates data by receipts and employment size of firm. Employment size of firm data include firms with payroll at any time during 2007. Employment reflects the number of paid employees during the March 12 pay period.
In 2007, 41,047 Asian Indian-owned firms had receipts of less than $5,000 (13.3 percent of the total number of Asian Indian-owned firms), while 28,083 Asian Indian-owned firms had receipts of $1,000,000 or more (9.1 percent of all Asian Indian-owned firms).
There were 69,935 Asian Indian-owned employer firms with less than five employees (64.0 percent of the total number of Asian Indian-owned employer firms) that generated $38.6 billion in receipts (27.4 percent of all Asian-owned employer firm receipts). In comparison, 1,959 Asian Indian-owned employer firms had 50 or more employees (1.8 percent) and generated $36.6 billion in receipts (26.0 percent).
Geographic Location. California had the largest number of Asian Indian-owned firms at 58,995 (19.1 percent of all Asian Indian-owned firms), with receipts of $29.1 billion (19.1 percent of all Asian Indian-owned firm receipts). New York and Texas were next with 47,760 (15.5 percent) and 27,748 (9.0 percent) Asian Indian-owned firms respectively, with receipts of $17.2 billion (11.3 percent) and $14.0 billion (9.2 percent) respectively.
Among U.S. counties, Los Angeles County, California, and Queens County, New York, had the largest numbers of Asian Indian-owned firms in 2007 at 16,730 and 16,324 respectively.
The metropolitan statistical areas with the largest number of Asian Indian-owned firms were New York-Northern New Jersey-Long Island, NY-NJ-PA (64,457); Los Angeles-Long Beach-Santa Ana, CA (23,151); and Chicago-Naperville-Joliet, IL-IN-WI (17,362).
The Survey of Business Owners is conducted every five years as part of the economic census. The 2007 survey collected data from a sample of more than 2.3 million businesses. Data collected in a sample survey are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage. More details concerning the SBO survey design, methodology and data limitations can be found at www.census.gov/econ/sbo/methodology.html