Black business stability: strong direction and specialized business plans increase the chances of surviving.Survival is a more urgent issue for black businesses than for other minority-owned companies, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Small Business Administration study. Dynamics of Minority-Owned Employer Establishments, 1997-2001 finds that black companies have the lowest survival rates of any ethnic businesses. Survival rates varied according to industry. In 1997, more than half of black-owned businesses were in the service industry, and 63% of these survived, versus 72% for all service companies. The worst black survival rate was 40% for non-classifiable establishments, the second-largest category of black companies. One in eight black businesses didn't did·n't Contraction of did not. didn't did not didn't do fit any industrial classification. The study's author, SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government Office of Advocacy senior economist Ying Lowrey, says this sector's low survival rate probably reflects its composition of startups lacking strong direction, specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. skills, or financial resources. Black finance, insurance, and real estate companies survived best. With a 71% survival rate, these black establishments matched the staying power of Hispanic businesses Hispanic Business, Inc. is a media company based in Santa Barbara, California, in the United States of America. Founded by Jesús Chavarría in 1979, Hispanic Business, Inc. publishes information for and about Hispanic professionals and entrepreneurs. and surpassed U.S. companies overall in the same category. Lowrey credits this industry's excellent survival rate to its high regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and professional requirements. Finance, insurance, and real estate companies accounted for one in 20 black businesses. Black businesses that do survive tend to be stable--neither expanding nor shrinking in terms of employee numbers. "When you are in a small business, especially if you don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. have the money to pump in, you just don't have the strength to expand," Lowrey says. "Black small businesses seem to hang in there pretty well, because their contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction is not as bad as, say, the rate of white businesses." [GRAPHIC OMITTED] Percent Distribution of Black-Owned Firms by Industry Division: 1997 * Transportation, communication, utilities 9% Construction 7% Finance, insurance, real estate 5% Wholesale 3% Agriculture, forestry, fishing, mining 2% Manufacturing 1% Services 53% Non-classifiable establishments 12% Retail 11% * FIRMS MAY BE COUNTED IN MORE THAN ONE INDUSTRY SOURCE: U.S. CENSUS BUREAU, 1997 ECONOMIC CENSUS Note: Table made from pie chart. |
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