Small Businesses: Marketing Financial Services to Minority Owned Businesses - US - September 2007

Table of Contents

• Scope and Themes
• What you need to know
• Scope of this report
• Resources used for The Consumer sections
• Abbreviations and terms
• Abbreviations
• Terms
• Definitions
  • Figure 1: Cultural heritage of Hispanic survey respondents. 2006
• Executive Summary
• Minority-owned small businesses increasing at a rapid rate
• Minority groups--overview
• Minority business owners--who are they?
• How do they start and fund their businesses?
• What do they think of their financial services provider?
• How can you reach minority business owners?
• The U.S. Minority Small Business Marketplace
• Overview of U.S. small businesses
• Overview of minority business owners
  • Figure 2: Change in number and gross receipts for minority firms, 1997-2002
  • Figure 3: Minority business representation, by industry sector, 2002
• Changing minority demographics
  • Figure 4: Total population, by race and Hispanic origin, 2002-12
  • Figure 5: U.S. minority group buying power, 2004
• Profile of minority business owners
  • Figure 6: Use of financial products by minority-owned small businesses, by race/ethnicity, 2003
  • Figure 7: Suppliers of financial services used by small businesses, by race/ethnicity, 2003
  • Figure 8: Profile of self-employed, by race/ethnicity, gender and age, January-September 2006
• Self-employed and gender
• Self-employed and age
• Minority business owners and company size
  • Figure 9: Size of firms, by number of employees--all firms vs. those for which the majority owner is non-white or Hispanic, 2003
  • Figure 10: Self-employed, by company size and race/ethnicity, January-September 2006
  • Figure 11: Self-employed by race/ethnicity, company size, gender and age, January-September 2006
  • Figure 12: Self-employed, by income, education and race/ethnicity, January-September 2006
• Trends and opportunities for financial services companies
• Hispanics
  • Figure 13: Percent change in Hispanic population--top 23 cities,--1990-2000
  • Figure 14: Percentage change in metropolitan areas with the fastest-growing Hispanic populations, 2000-04
  • Figure 15: Total population and Hispanic population, by age, 2006
  • Figure 16: Hispanic population projections, 2010-50
  • Figure 17: Hispanic heritage, language spoken, and born/not born in U.S., by company size, January-September 2006
• Black Americans
  • Figure 18: Counties with the largest number of black-owned firms, 2002
  • Figure 19: Industries with the most black-owned businesses, 2002
  • Figure 20: States with the largest number of black-owned firms, 2002
  • Figure 21: Percent change in black American population--top 23 cities, 1990-2000
  • Figure 22: Percentage change in metropolitan areas with the fastest-growing black populations, 2000-04
  • Figure 23: Total population and black population, by age, 2006
• Asian Americans
• Asian American small businesses
  • Figure 24: Percent change Asian/Pacific Islander population--top 23 cities, 1990-2000
  • Figure 25: Percentage change in metropolitan areas with the fastest-growing Asian populations, 2000-04
• Asian Americans and financial institutions
• Asian American online activity
• The Consumer Survey--Types of Businesses Surveyed
• Type of business
  • Figure 26: Type of business owned, by gender--minority respondents who own a business, July 2007
  • Figure 27: Type of business owned, by age--minority respondents who own a business, July 2007
  • Figure 28: Type of business owned, by income--minority respondents who own a business, July 2007
  • Figure 29: Type of business owned, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 30: Type of business owned, by marital status and number of people in the househole--minority respondents who own a business, July 2007
  • Figure 31: Type of business owned, by education--minority respondents who own a business, July 2007
  • Figure 32: Type of business owned, by Census region--minority respondents who own a business, July 2007
• Summary--who owns what
• Number of employees
  • Figure 33: Number of employees, by gender--minority respondents who own a business, July 2007
  • Figure 34: Number of employees, by age--minority respondents who own a business, July 2007
  • Figure 35: Number of employees, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 36: Number of employees, by marital status and number of persons in household--minority respondents who own a business, July 2007
  • Figure 37: Number of employees, by education--minority respondents who own a business, July 2007
  • Figure 38: Number of employees by Census region--minority respondents who own a business, July 2007
• The Consumer--Financial Details of Business Owners
• Primary source of income
  • Figure 39: Is business primary or secondary source of income?, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 40: Is business primary or secondary source of income?, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 41: Is business primary or secondary source of income?, by marital status and number of persons in household--minority respondents who own a business, July 2007
  • Figure 42: Is business primary or secondary source of income?, by level of education--minority respondents who own a business, July 2007
  • Figure 43: Is business primary or secondary source of income?, by Census region--minority respondents who own a business, July 2007
• Are respondents also homeowners?
  • Figure 44: Home ownership rates, by race/ethnicity, 1996 and 2005
  • Figure 45: Home ownership rates, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 46: Home ownership rates, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 47: Home ownership rates, by marital status and number of persons in household--minority respondents who own a business, July 2007
• Start-up funding
  • Figure 48: Primary source of funds to start business, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 49: Primary source of funds to start business, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 50: Primary source of funds to start business, by marital status and number of persons in household--minority respondents who own a business, July 2007
  • Figure 51: Primary source of funds to start business, by education--minority respondents who own a business, July 2007
• Financing cash flow
  • Figure 52: Credit card usage by race/ethnicity and gender--self-employed, January-September 2006
  • Figure 53: Types of loans held by race/ethnicity--self-employed, January-September 2006
  • Figure 54: Financing cash flow needs, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 55: Financing cash flow needs, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 56: Financing cash flow, by marital status and number of persons in household--minority respondents who own a business, July 2007
  • Figure 57: Financing cash flow, by level of education--minority respondents who own a business, July 2007
• The Consumer--Business Owner Relationship with Financial Institutions
• Interest in financial educational programs
  • Figure 58: Interest in financial educational programs, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 59: Interest in financial educational programs, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 60: Interest in financial educational programs, by education--minority respondents who own a business, July 2007
• Interest in financial products/services
  • Figure 61: Self-employed who have life and/or health insurance, by race/ethnicity and company size, January-September 2006
  • Figure 62: Interest in financial products and services, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 63: Interest in financial products and services, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 64: Interest in financial products and services, by education--minority respondents who own a business, July 2007
  • Figure 65: Interest in financial products and services, by Census region--minority respondents who own a business, July 2007
• Reasons for choosing a financial services provider
  • Figure 66: How financial institution was chosen, by gender, age and income--minority respondents who own a business, July 2007
  • Figure 67: How financial institution was chosen, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 68: How financial institution was chosen, by marital status and number of persons in household--minority respondents who own a business, July 2007
  • Figure 69: How financial institution was chosen, by education--minority respondents who own a business, July 2007
• Would you recommend your bank or credit union to others?
  • Figure 70: Would you recommend your current primary bank or credit unions to others?, by gender, age, and income--minority respondents who own a business, July 2007
  • Figure 71: Would you recommend your current primary bank or credit unions to others?, by race/ethnicity--minority respondents who own a business, July 2007
  • Figure 72: Would you recommend your current primary bank or credit unions to others?, by level of education--minority respondents who own a business, July 2007
• Marketing to minorities and additional recommendations
• Marketing to Asian Americans
• Marketing to Hispanics
  • Figure 73: Hispanic ad spending, by industry, 2004 and 2005
• Appendix: Industry Associations
• Appendix: Advertising and Promotion
  • Figure 74: Banco Popular small business banking direct mail creative, June 2007
  • Figure 75: TotalBank Totally Free Business Checking direct mail creative, August 2007
  • Figure 76: Blue Cross Blue Shield of Florida, print advertisement, May 2007
  • Figure 77: Capital One general small business direct mail creative, August 2007
  • Figure 78: American Express Simply Cash general business credit card direct mail creative, July 2007