Research Summary

"Asian Women Business Owners in the United States" A Fact Sheet

Center for Women’s Business Research  ·  February 27, 2003

• Similar to women business owners in other ethnic groups, a goal of most Asian women business owners is to increase revenue and employment in their firms – 71% indicate that this goal describes their views very or extremely well.
• Over half (55%) of Asian women business owners say that their firms have grown somewhat or a great deal over the past three years, similar to women business owners of other ethnicities.
• Top issue of concern among Asian women business owners at this point in time is future business growth and expansion.– 23% mention it in response to an open-ended question. Other top business issues among Asian as well as other women business owners include: employee issues, the state of the economy, and capital and cash flow.
• In order to start or acquire their businesses, the majority of Asian women entrepreneurs (78%) had access to capital. Twenty-nine percent (29%) had $25,000 or more in start-up capital, while 47% had less than $25,000 in start-up capital.
• Asian women entrepreneurs appear to have lower levels of bank credit today to run their firms. Among those who currently have bank credit, 18% have $100,000 or more in loans compared to one-third (33%) with $100,000 or more in credit in 1998.
• Although the majority have sole ownership, Asian women entrepreneurs are more likely than entrepreneurs of other ethnicities to share ownership in their firms. Four in ten (40%) Asian women entrepreneurs share ownership in their firms, compared to 33% of Latina entrepreneurs, 32% of Caucasian women entrepreneurs, and just 19% of African American women entrepreneurs
• Eighty-five percent (85%) of Asian women business owners have a senior management team in place. In comparison, 77% of African American women business owners, 74% of Latina business owners, and 71% of Caucasian women business owners have senior management teams.
• Asian women business owners are the least likely to indicate that they feel respected by most other business owners in their local community – just 53% feel respected most of the time, compared to 67% of Caucasian women business owners and 60% of Latina and African American women business owners.
• Four in ten (40%) Asian women business owners have immigrated to the U.S., as have one-quarter (26%)of Latina business owners. In comparison, just 3% of African American women business owners and 2% of Caucasian women business owners immigrated to the U.S. Today, Asian women business owners are less likely to have immigrated, or to have parents who immigrated, than in the past - 63% are immigrants or have immigrant parents currently, compared to 76% in the 1998 study.
• Compared to their Latina, African American and Caucasian counterparts, Asian women business owners are the most likely to have a college degree. Over half (55%) of the Asian women business owners surveyed have a college education, compared to 46% of African American women business owners, 40% of Caucasian women business owners, and only one-quarter (24%) of Latina business owners.

Methodology Note: The data in this fact sheet comes from the report, “Women Business Owners of Color: New Accomplishments, Continuing Challenges.” The nationwide study was conducted by telephone from mid-April through the end of May 2002. A total of 807 interviews were completed: 203 with African American women business owners, 201 with Asian women business owners, 202 with Caucasian women business owners, and 201 with Latina business owners. The sampling error for samples of this size is ±7.1% at the 95% level of confidence. This means that, 95 times out of 100, survey results will be within 7.1% of true population values.

The sample of women business owners of color was obtained from Dun & Bradstreet. In the sample, respondents were stratified on the basis of gender and firm revenues in order to ensure adequate numbers for analysis. Between 30 and 40 women business owners of color also volunteered to be interviewed.

The definition of ethnic groups, as well as the terminology used in this report, came from the U.S. Census Bureau. Respondents were self-identified as being in one (or more) of the following ethnic groups: African American, Asian American/Pacific Islander, Latina, and Non-Hispanic Caucasian.

This fact sheet was prepared in January 2003, ©Center for Women’s Business Research.

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