The NES-D is an annual statistical series that uses existing administrative records and census data to link demographic characteristics to the universe of nonemployer businesses. Nonemployer businesses are those that have no paid employees or payroll, are subject to federal income tax, and have receipts of $1,000 or more. The NES-D statistics are the accompanying dataset to the Annual Business Survey (ABS) data on employer businesses and when combined with the ABS, provide a complete picture of business owner demographics such as sex, race, ethnicity and veteran status.
Highlights for nonemployer businesses:
- Hispanic-owned firms accounted for 15.5% (4,191,000) of businesses, with $156.5 billion in receipts.
- Veteran-owned businesses made up about 5.1% (1,382,000) of businesses, with $59.7 billion in receipts.
- 2,334,000 (8.6%) businesses were Asian owned, with receipts of $114.2 billion, the largest receipts among businesses owned by minority race groups.
- 3,455,000 (12.7%) businesses were Black or African American owned, with receipts of $83.6 billion.
- 315,000 (1.2%) businesses were American Indian or Alaska Native owned, with $10.5 billion in receipts.
- 82,000 (0.3%) businesses were Native Hawaiian or Other Pacific Islander owned, with $3.0 billion in receipts.
This release also includes demographic statistics of all businesses, those with and without employees, combining results from the previously released ABS (data year 2019) and the 2019 NES-D.
Highlights from these combined statistics (total employer and nonemployer businesses):
- Minorities owned and operated 10,630,319 businesses, with $1.9 trillion in receipts.
- Women owned and operated 12,338,407 businesses, with $2.1 trillion in receipts.
- Hispanics owned and operated 4,537,836 businesses, with $619.8 billion in receipts.
- Veterans owned and operated 1,713,151 businesses, with $1.0 trillion in receipts.
The 2019 NES-D reported increases in business ownership by race for each of the minority race groups from 2018. These changes are due to the combination of enhanced methods used during processing, timing of administrative data, and population changes reported in the administrative data. The culmination of these changes could have affected some race groups more than others. For more information on the changes in data by race, refer to the NES-D methodology. The Census Bureau has reviewed this data product to ensure appropriate access, use and disclosure avoidance protection of the confidential source data (Project No. 7504866, Disclosure Review Board (DRB) approval number: CBDRB-FY23-0262).
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