CHARLOTTE, N.C., Jan. 8, 2019 /PRNewswire/ -- LendingTree®, the nation's leading online loan marketplace, today released its study on the places where minority entrepreneurs are succeeding.
Minority entrepreneurs have a major presence in the U.S. business landscape, as there are about eight million minority-owned
businesses throughout the country. However, not all of these business owners are succeeding. Several factors could be at play,
such as access to capital, which has long been a hurdle for minority-owned businesses. Location could also be a determining
factor in minority entrepreneurs succeeding in their ventures, according to new data from LendingTree.
LendingTree looked at firms that minorities own either wholly or equally and the cities in which the strongest performers are
located. Cities in California took the top spots, while Midwestern metros rounded out the bottom
of the ranking.
Key findings
- Four of the top 10 cities are dominated by California hot spots. No. 1 San Francisco has a
high rate of self-employed minorities and a relatively high parity of business ownership, though San
Jose has the highest parity of business ownership by minorities.
- Last place St. Louis has struggled with revenues and longevity for its minority-owned
businesses — only 18 percent have exceeded $500,000 in annual revenue while 27.6 percent survive
past their first six years in business. Another Missouri metro follows on the heels of
St. Louis: No. 49 Kansas City.
- Midwestern cities have a generally poor showing, with Milwaukee and Cleveland rounding out the bottom four.
Top metros for minority business owners
The top places in the study share a high percentage of minorities who are self-employed – around 4 percent in the top three
metros. The two highest-ranking places are both in California, which leads all states in the
number of minority-owned firms with employees.
1. San Francisco
Final score: 83.9
San Francisco ranked No. 1 in the study with a high rate of self-employed minorities and
relatively high parity of business ownership. Most minority-owned businesses – 56.7 percent – have been in business for more than
six years. Nearly half of minority-owned businesses – 42.6 percent – generate $500,000 or more in
revenue.
2. San Jose, Calif.
Final score: 83.2
Nearby San Jose took the No. 2 spot though it has the highest parity index. San Jose and San Francisco have the same percentage of minority-owned
businesses earning $500,000 or more at 42.6 percent. They also have similar numbers of
long-standing minority-owned businesses: 56.6 percent have been in business six years or more in San
Jose with 56.7 percent in San Francisco.
3. Washington, D.C.
Final score: 78.8
The nation's capital is the highest-ranking East Coast metro at No. 3. Washington, D.C.'s
minority business ownership parity is equal to that of San Francisco, and the percentage of
minorities who are self-employed is about the same as the top city as well. Revenue is where Washington falls short of its California rivals — 39.9 percent of
minority-owned businesses have revenues of $500,000 or more. It slightly lags in longevity, too,
with 55.8 percent of minority-owned businesses in existence for six years or more.
Where minority entrepreneurs are struggling
The three bottom-ranking cities in the study are in Midwestern states, with the last two in Missouri.
50. St. Louis
Final score: 33.2
Even though St. Louis has the second-highest parity index in the study, its rate of long-term
success for minority-owned businesses is dismal. Just 27.3 percent survive past six years in business, nearly half the rate of
the second-worst city, Kansas City, Mo.
49. Kansas City, Mo.
Final score: 39.1
Kansas City is another Missouri city where minority
entrepreneurs have struggled to succeed, with just 30.7 percent of minority-owned businesses generating $500,000 or more, though that's far better than No. 50 St. Louis. The number of minorities who are
self-employed sits at 2.4 percent, slightly below St. Louis. Less than half of minority
businesses in Kansas City – 42.6 percent – have been in operation longer than six years.
48. Cleveland
Final score: 41.6
Cleveland ranked near the bottom of the list with the lowest minority business ownership
parity index, 33. Cleveland has a similar percentage of self-employed minorities as the other
bottom two cities at 2.6 percent. Just 33.3 percent of minority-owned businesses in Cleveland
earn more than $500,000 in revenue. However, 54.6 percent minority-owned businesses have been open
for six years or more.
To view the full report, visit www.lendingtree.com/business/where-minority-entrepreneurs-succeeding.
|
Metros Ranked by Where Minority Entrepreneurs Are Succeeding
|
|
Rank
|
Metro
|
Final Score
|
% of Minorities Who Are Self-Employed
|
Minority Business Ownership Parity Index
|
% of Minority Owned Businesses That Have $500K+ Revenues
|
% of Minority Owned Businesses in Operation for 6+ Years
|
|
1
|
San Francisco
|
83.9
|
4.3%
|
68
|
42.6%
|
56.7%
|
|
2
|
San Jose, Calif.
|
83.2
|
3.8%
|
73
|
42.6%
|
56.6%
|
|
3
|
Washington, D.C.
|
78.8
|
4.0%
|
68
|
39.9%
|
55.8%
|
|
4
|
Los Angeles
|
78.7
|
4.2%
|
61
|
42.4%
|
56.7%
|
|
5
|
Seattle
|
78.5
|
4.6%
|
69
|
36.3%
|
53.2%
|
|
6
|
Portland, Ore.
|
75.9
|
4.4%
|
61
|
38.8%
|
55.5%
|
|
7
|
Sacramento, Calif.
|
74.5
|
3.0%
|
65
|
41.8%
|
60.0%
|
|
8
|
Pittsburgh
|
70
|
3.7%
|
52
|
39.4%
|
61.0%
|
|
9
|
Atlanta
|
69.8
|
4.8%
|
55
|
37.4%
|
49.7%
|
|
10
|
Cincinnati
|
68.8
|
3.1%
|
50
|
43.3%
|
62.3%
|
|
11
|
Houston
|
68.7
|
2.5%
|
59
|
46.7%
|
56.2%
|
|
12
|
Oklahoma City
|
68.6
|
2.8%
|
57
|
44.6%
|
57.8%
|
|
13
|
Baltimore
|
67.7
|
3.9%
|
54
|
37.7%
|
56.1%
|
|
14
|
Riverside, Calif.
|
66.8
|
2.4%
|
64
|
43.3%
|
53.9%
|
|
15
|
Nashville, Tenn.
|
63.8
|
3.9%
|
51
|
42.0%
|
48.6%
|
|
16
|
Columbus, Ohio
|
62.4
|
3.2%
|
53
|
42.6%
|
51.0%
|
|
17
|
Dallas
|
62.3
|
2.5%
|
57
|
45.3%
|
50.6%
|
|
18
|
San Diego
|
61.8
|
2.8%
|
56
|
37.7%
|
56.0%
|
|
18
|
Virginia Beach, Va.
|
61.8
|
2.6%
|
49
|
39.1%
|
62.8%
|
|
20
|
Tampa, Fla.
|
61.5
|
2.4%
|
63
|
38.7%
|
52.7%
|
|
21
|
Memphis, Tenn.
|
60.6
|
2.7%
|
36
|
49.7%
|
60.0%
|
|
22
|
New York
|
60.3
|
3.6%
|
57
|
33.8%
|
49.9%
|
|
23
|
Birmingham, Ala.
|
59.9
|
3.6%
|
37
|
42.6%
|
57.7%
|
|
23
|
Miami
|
59.9
|
2.4%
|
63
|
34.9%
|
54.5%
|
|
25
|
Raleigh, N.C.
|
58.6
|
2.9%
|
46
|
46.7%
|
49.5%
|
|
26
|
Indianapolis
|
58.5
|
2.5%
|
46
|
45.0%
|
55.0%
|
|
27
|
Louisville, Ky.
|
58.1
|
2.5%
|
40
|
49.6%
|
54.4%
|
|
28
|
Boston
|
57.6
|
2.7%
|
49
|
41.9%
|
53.3%
|
|
29
|
Austin, Texas
|
57.1
|
2.4%
|
50
|
43.8%
|
52.0%
|
|
30
|
Minneapolis
|
57
|
3.3%
|
44
|
39.3%
|
53.4%
|
|
31
|
Hartford, Conn.
|
56.8
|
2.9%
|
50
|
36.4%
|
55.3%
|
|
32
|
Richmond, Va.
|
56.7
|
2.8%
|
49
|
37.6%
|
55.0%
|
|
33
|
Las Vegas
|
56.2
|
2.7%
|
52
|
38.6%
|
52.2%
|
|
34
|
San Antonio
|
56
|
1.1%
|
59
|
44.1%
|
54.5%
|
|
35
|
Charlotte, N.C.
|
55.6
|
3.2%
|
43
|
40.4%
|
52.5%
|
|
36
|
New Orleans
|
54.3
|
3.3%
|
38
|
33.3%
|
62.1%
|
|
37
|
Salt Lake City
|
53
|
2.6%
|
39
|
41.2%
|
56.6%
|
|
38
|
Philadelphia
|
52.4
|
2.5%
|
47
|
36.9%
|
54.8%
|
|
39
|
Chicago
|
52.1
|
2.4%
|
50
|
34.4%
|
55.1%
|
|
40
|
Phoenix
|
50.5
|
1.9%
|
43
|
40.7%
|
56.9%
|
|
41
|
Denver
|
50.4
|
2.6%
|
47
|
36.3%
|
52.1%
|
|
42
|
Orlando, Fla.
|
50
|
2.6%
|
55
|
32.0%
|
49.0%
|
|
43
|
Detroit
|
49
|
2.6%
|
39
|
35.6%
|
57.1%
|
|
43
|
Jacksonville, Fla.
|
49
|
3.1%
|
49
|
30.2%
|
50.3%
|
|
45
|
Buffalo, N.Y.
|
48.2
|
1.9%
|
42
|
35.2%
|
61.1%
|
|
46
|
Providence, R.I.
|
47.5
|
2.1%
|
42
|
37.6%
|
55.6%
|
|
47
|
Milwaukee
|
47.3
|
1.9%
|
37
|
40.2%
|
58.7%
|
|
48
|
Cleveland
|
41.6
|
2.6%
|
33
|
33.3%
|
54.6%
|
|
49
|
Kansas City, Mo.
|
39.1
|
2.4%
|
49
|
30.7%
|
42.6%
|
|
50
|
St. Louis
|
33.2
|
2.5%
|
71
|
18.1%
|
27.3%
|
|
Average
|
59.9
|
2.9%
|
52
|
39.2%
|
54.3%
|
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online marketplace that connects consumers with the choices
they need to be confident in their financial decisions. LendingTree empowers consumers to shop for financial services the same
way they would shop for airline tickets or hotel stays, comparing multiple offers from a nationwide network of over 500 partners
in one simple search, and can choose the option that best fits their financial needs. Services include mortgage loans, mortgage
refinances, auto loans, personal loans, business loans, student refinances, credit cards and more. Through the My LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations to
improve credit health. My LendingTree proactively compares consumers' credit accounts against offers on our network, and notifies
consumers when there is an opportunity to save money. In short, LendingTree's purpose is to help simplify financial decisions for
life's meaningful moments through choice, education and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more
information, go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
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