US – Business owners are older and Minorities and Hispanics are more likely to be an employee than own a business.

This issue brief examines business owner demographic characteristics in 2013 and compares these characteristics to those of employees in the U.S. economy.

Minorities and Hispanics are more likely to be an employee than own
a business. Minority and Hispanic business owners made up less than 15 percent of all U.S. business owners in 2013. Asian business owners represented 4.3 percent of all owners versus 4.8 percent of all private sector employees. Blacks represented 7 percent of all owners compared to 12.1 percent of all employees. Hispanics represented 10.6 percent of all business owners versus 16.7 percent of all employees in 2013. Women’s share of business ownership in 2013 was 35.4 percent of business owners compared to 47.3 percent of private sector employees (Figure 1). This ownership proportion is in line with an Office of Advocacy study which found that 29 percent of U.S. firms were owned by women.

Business owners are older, i.e., age 50 and over. In 2013, the age makeup of business owners was much older than that of employees. While the proportion of those of prime age in the workforce did not differ between business owners and employees, business owners were much less likely to be younger (under age 35) than employees, 15.6 percent versus 38.3 percent, respectively.

The education level of business owners is high. Business owners were more likely to have a bachelor’s degree or higher education level than employees, 39.2 percent versus 29.2 percent, respectively. In addition, owners were less likely than employees to have a high school degree or less.