Black-Owned Businesses in Texas Metro Areas – 2014 through 2016

Black-Owned Businesses in Texas Metro Areas
Businesses with Paid Employees - 2014, 2015, and 2016

The Annual Survey of Entrepreneurs (ASE) provides annual data on select economic and demographic characteristics of employer businesses and their owners by gender, ethnicity, race, and veteran status.

The ASE contains business statistics categorized by gender, ethnicity, race, and veteran status.   The data it contains is only for businesses that have paid employees and it does not include specific annual revenue/sales values.   It was conducted annually and has data available for the years 2014, 2015, and 2016.

It contains similar, but not as detailed information as is found in the Survey of Business Owners and Self-Employed Persons (SBO), which was last conducted for the year 2012.   The SBO produced much more comprehensive information and it included businesses that had paid employees as well as those businesses that did not have paid employees.   See our articles for the SBO Data

The business data for 2017 is scheduled to be released by the U.S. Census Bureau in December 2019 in the form of the Annual Business Survey (ABS).

Consequently, the tables presented here are sourced from the most recent comprehensive surveys of businesses with paid employees, the ASE for the years 2014, 2015, and 2016..



Texas Population and Business Ownership Data by Racial/Ethnic Groups

Population Statistics

Texas Population Pie Charts by Race/Ethnicity for 2014, 2015, and 2016.
Texas Population Statistics - 2014, 2015, and 2016
Race/Ethnicity 2014* % 2015** % 2016*** %
White (Non-Hispanic)11,562,45344.3%11,635,75743.8%11,705,68443.4%
Hispanic (Non-Black, Non-Asian)9,870,64937.8%10,101,03238.1%10,313,29838.3%
Black or African American3,015,76711.6%3,070,82111.6%3,134,96211.6%
Asian1,053,4744.0%1,110,7724.2%1,161,7424.3%
Other589,6902.3%620,2322.3%640,7492.4%
Total26,092,033100.0%26,538,614100.0%26,956,435100.0%

      *Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates
    **Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates
  ***Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates



Business Ownership Statistics
Number of Businesses with Paid Employees

Texas Businesses with Paid Employees Clustered Bar Charts by Race/Ethnicity for 2014, 2015, and 2016.
Texas Business Statistics - 2014, 2015, and 2016
Businesses with Paid Employees by Race/Ethnicity
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
White (Non-Hispanic)253,96269.7%257,83569.0%261,29568.0
Hispanic (Non-Black, Non-Asian)49,26113.5%51,26813.7%53,79914.0
Black or African American8,5142.3%8,7362.3%8,9452.3
Asian40,45511.1%43,56411.7%46,87212.2
Other12,3353.4%12,2573.3%13,5523.5
All firms classifiable by gender, ethnicity, race, and veteran status364,527100.0%373,660100.0%384,463100.0

      *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
    **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
  ***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs



Population Percentages vs Business Ownership Percentages Comparison in Texas
Race/Ethnicity 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
White (Non-Hispanic)44.3%69.7%25.4%43.8%69.0%25.2%43.4%68.0%24.6%
Hispanic (Non-Black, Non-Asian)37.8%13.5%-24.3%38.1%13.7%-24.4%38.3%14.0%-24.3%
Black or African American11.6%2.3%-9.3%11.6%2.3%-9.3%11.6%2.3%-9.3%
Asian4.0%11.1%7.1%4.2%11.7%7.5%4.3%12.2%7.9%
Other2.3%3.4%1.1%2.3%3.3%1.0%2.4%3.5%1.1%
Total100.0%100.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%

The comparison above, looks at businesses that had paid employees in the state of Texas.   For Black-Owned businesses, the difference between Ownership Percentage and Population Percentage was a consistent deficit of -9.3% for the years 2014 through 2016.

For Hispanic-Owned businesses, the deficit was even higher, registering -24.3% for the years 2014 and 2016.   In 2015 the deficit was -24.4%.



Top 4 Metropolitan Statistical Areas (MSAs) for Black-Owned Businesses with Paid Employees in Texas – 2014 through 2016

Next, we look at the 4 leading Metropolitan Areas in Texas for Black-Owned businesses, which were among the top 50 MSAs for Black-Owned businesses in the U.S.



Clustered Bar Chart of the number of Black-Owned businesses in the top 4 MSAs in Texas for 2014, 2015, and 2016.
Black-Owned Businesses in Texas with Paid Employees - 2014, 2015, and 2016
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
Austin-Round Rock3824.5%3914.5%4435.0
Dallas-Fort Worth-Arlington2,99135.1%3,02334.6%3,17335.5
Houston-The Woodlands-Sugar Land3,39339.8%3,61841.4%3,62240.5
San Antonio-New Braunfels3123.7%3784.3%3473.9
All Other Texas Metro Areas1,43616.9%1,32615.2%1,36015.2
Total Texas Metro Areas8,514100.0%8,736100.0%8,945100.0

    *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
  **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs

The four Metropolitan Areas listed above, accounted for 83.1 % of the Black-Owned businesses that had paid employees in Texas in 2014.   For both 2015 and 2016, these four MSAs accounted for 84.8% of the Black-Owned businesses with paid employees in Texas.

For businesses with paid employees, the combination of the MSAs, Dallas-Fort Worth-Arlington and Houston-The Woodlands-Sugar Land made up 74.9% of the Black-Owned businesses in Texas for 2014.   In 2015 and 2016 these two MSAs accounted for 76.0% of such businesses in Texas.


The following 3 tables show how the business ownership totals cited above are categorized by NAICS Business Descriptions for the years being reviewed.

Black-Owned Business Categories in Texas - 2014
Businesses with Paid Employees
NAICS Business Category Austin/Round Rock Dallas/Fort Worth/Arlington Houston/The Woodlands/Sugar Land San Antonio/New Braunfels
Accommodation and food services19661068
Administrative and support and waste management and remediation services63062379
Construction7889748
Educational services9977615
Finance and insurance18653406
Health care and social assistance1201,3201,27938
Manufacturing001235
Other services (except public administration)351571457
Professional, scientific, and technical services4951629880
Real estate and rental and leasing31459338
Retail trade46625636
Transportation and warehousing20911442
Wholesale trade29221330
Other0210
Total3822,9913,393312

Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs


Black-Owned Business Categories in Texas - 2015
Businesses with Paid Employees
NAICS Business Category Austin/Round Rock Dallas/Fort Worth/Arlington Houston/The Woodlands/Sugar Land San Antonio/New Braunfels
Accommodation and food services3013718274
Administrative and support and waste management and remediation services1028718113
Construction51141760
Educational services3778307
Finance and insurance26652788
Health care and social assistance1421,2051,27936
Industries not classified00029
Manufacturing00927
Other services (except public administration)311261239
Professional, scientific, and technical services6751544973
Real estate and rental and leasing51317634
Retail trade610634856
Transportation and warehousing291141653
Wholesale trade314523929
Total3913,0233,618378

Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs


Black-Owned Business Categories in Texas - 2016
Businesses with Paid Employees
NAICS Business Category Austin/Round Rock Dallas/Fort Worth/Arlington Houston/The Woodlands/Sugar Land San Antonio/New Braunfels
Accommodation and food services3024825711
Administrative and support and waste management and remediation services1121018613
Agriculture, forestry, fishing and hunting0000
Arts, entertainment, and recreation02706
Construction61051780
Educational services52116307
Finance and insurance28652798
Health care and social assistance1471,2631,47453
Industries not classified00022
Information03210
Management of companies and enterprises0102
Manufacturing001167
Mining, quarrying, and oil and gas extraction0100
Other services (except public administration)551221179
Professional, scientific, and technical services6756542073
Real estate and rental and leasing510010648
Retail trade710822456
Transportation and warehousing32118783
Utilities0000
Wholesale trade39215629
Total4433,1733,622347

Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs


The following table presents the percentage changes in the number of Black-Owned Businesses with paid employees between the years 2014 through 2016.   The data is for the top 4 MSAs in Texas.

Black-Owned Businesses in Texas with Paid Employees - 2014, 2015, and 2016
Metropolitan Statistical Area 2014 2015 2014 to 2015 Change % 2015 2016 2015 to 2016 Change % Net 2014 to 2016 Change %
Austin/Round Rock 3823912.4% 39144313.3% 16.0%
Dallas/Fort Worth/Arlington 2,9913,0231.1% 3,0233,1735.0% 6.1%
Houston/The Woodlands/Sugar Land 3,3933,6186.6% 3,6183,6220.1% 6.7%
San Antonio/New Braunfels 31237821.2% 378347-8.2% 11.2%

The Austin/Round Rock and San Antonio/New Braunfels MSAs were the fastest growing.   However, their combined total in 2016 of 790 businesses was only 11.6% of the combined total in 2016 of 6,795 for Dallas/Fort Worth/Arlington and Houston/The Woodlands/Sugar Land.


Finally, we present data for each of the Top 4 MSAs for Black-Owned Businesses in Texas for the years 2014, 2015, and 2016.


Austin/Round Rock Metro Area

Population Statistics

Austin/Round Rock,TX MSA Population Pie Charts by Race/Ethnicity for 2014, 2015, and 2016.
Austin/Round Rock, TX Population Statistics - 2014, 2015, and 2016
Race/Ethnicity 2014* % 2015** % 2016*** %
White (Non-Hispanic)989,68253.91,012,66153.61,036,37253.3
Hispanic (Non-Black, Non-Asian)575,84631.4594,58131.5613,08931.6
Black/African-American129,0377.0132,6517.0136,1057.0
Asian90,8505.095,9195.1101,5665.2
Other49,6012.753,2822.855,4832.9
Total1,835,016100.01,889,094100.01,942,615100.0

    *Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates
  **Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates
***Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates



Business Ownership Statistics
Number of Businesses with Paid Employees

Austin/Round Rock,TX MSA Businesses with Paid Employees Clustered Bar Charts by Race/Ethnicity for 2014, 2015, and 2016.
Austin/Round Rock, TX Business Statistics - 2014, 2015, and 2016
Businesses with Paid Employees by Race/Ethnicity
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
White (Non-Hispanic)24,98078.525,89777.626,75176.5
Hispanic2,8188.92,9959.03,3729.6
Black or African American3821.23911.24431.3
Asian2,5558.02,6487.92,7717.9
Other1,0763.41,4544.41,6174.6
All firms classifiable by gender, ethnicity, race, and veteran status31,811100.033,385100.034,954100.0

      *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
    **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
  ***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs



Population Percentages vs Business Ownership Percentages Comparison for Austin/Round Rock, TX

Race/Ethnicity 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
White (Non-Hispanic)53.9%78.5%24.6%53.6%77.6%24.0%53.3%76.5%23.2%
Hispanic (Non-Black, Non-Asian)31.4%8.9%-22.5%31.5%9.0%-22.5%31.6%9.7%-21.9%
Black/African-American7.0%1.2%-5.8%7.0%1.2%-5.8%7.0%1.3%-5.7%
Asian5.0%8.0%3.0%5.1%7.9%2.8%5.2%7.9%2.7%
Other2.7%3.4%0.7%2.8%4.3%1.5%2.9%4.6%1.7%
Total100.0%100.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%

Black-Owned Businesses that had paid employees in the Austin/Round Rock MSA had a deficit of business ownership percentage vs population percentage of -5.8% in 2014 and 2015.   The 2016 deficit was -5.7%.

For Hispanic-Owned businesses, the deficit -22.5% for the years 2014 and 2015. In 2016 the deficit was -21.9%.



Dallas/Fort Worth/Arlington Metro Area

Population Statistics

Dallas/Fort Worth/Arlington,TX MSA Population Pie Charts by Race/Ethnicity for 2014, 2015, and 2016.
Dallas/Fort Worth/Arlington, TX Population Statistics - 2014, 2015, and 2016
Race/Ethnicity 2014* % 2015** % 2016*** %
White (Non-Hispanic)3,309,10549.43,336,09348.83,360,11948.3
Hispanic (Non-Black, Non-Asian)1,843,45427.51,892,42527.71,936,22727.8
Black/African-American987,67214.71,013,78514.81,044,36515.0
Asian377,5725.6400,7985.9419,7066.0
Other185,2172.8190,3192.8196,7062.8
Total6,703,020100.06,833,420100.06,957,123100.0

    *Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates
  **Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates
***Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates



Business Ownership Statistics
Number of Businesses with Paid Employees

Dallas/Fort Worth/Arlington,TX MSA Businesses with Paid Employees Clustered Bar Charts by Race/Ethnicity for 2014, 2015, and 2016.
Dallas/Fort Worth/Arlington, TX Business Statistics - 2014, 2015, and 2016
Businesses with Paid Employees by Race/Ethnicity
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
White (Non-Hispanic)72,84372.974,39372.074,95670.4
Hispanic7,4177.47,3017.17,7387.3
Black or African American2,9913.03,0232.93,1733.0
Asian13,88813.915,16014.717,06616.0
Other2,7822.83,3983.33,4873.3
All firms classifiable by gender, ethnicity, race, and veteran status99,921100.0103,275100.0106,420100.0

      *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
    **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
  ***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs



Population Percentages vs Business Ownership Percentages Comparison for Dallas/Fort Worth/Arlington, TX

Race/Ethnicity 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
White (Non-Hispanic)49.4%72.9%23.5%48.8%72.0%23.2%48.3%70.4%22.1%
Hispanic (Non-Black, Non-Asian)27.5%7.4%-20.1%27.7%7.1%-20.6%27.8%7.3%-20.5%
Black/African-American14.7%3.0%-11.7%14.8%2.9%-11.9%15.0%3.0%-12.0%
Asian5.6%13.9%8.3%5.9%14.7%8.8%6.1%16.0%9.9%
Other2.8%2.8%0.0%2.8%3.3%0.5%2.8%3.3%0.5%
Total100.0%100.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%

In the Dallas/Fort Worth/Arlington MSA, the difference between the percentage of Black-Owned Businesses with paid employees and the population percentage was lower than the State Average for Black Businesses for the years 2014 through 2016.   The differences were -11.7% (2014), -11.9% (2015) and -12.0% (2016).

For Hispanic-Owned businesses, the deficits were -20.1% (2014), -20.6% (2015), and -20.5% (2016).



Houston/The Woodlands/Sugar Land Metro Area

Population Statistics

Houston/The Woodlands/Sugar Land,TX MSA Population Pie Charts by Race/Ethnicity for 2014, 2015, and 2016.
Houston/The Woodlands/Sugar Land, TX Population Statistics - 2014, 2015, and 2016
Race/Ethnicity 2014* % 2015** % 2016*** %
White (Non-Hispanic)2,393,84238.62,421,89638.22,447,60737.8
Hispanic (Non-Black, Non-Asian)2,202,92435.52,267,06935.72,326,89435.9
Black/African-American1,046,61916.91,063,98516.81,090,67116.8
Asian426,7696.9448,0657.1466,9777.2
Other133,9872.2145,6382.3150,4432.3
Total6,204,141100.06,346,653100.06,482,592100.0

    *Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates
  **Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates
***Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates



Business Ownership Statistics
Number of Businesses with Paid Employees

Houston/The Woodlands/Sugar Land,TX MSA Businesses with Paid Employees Clustered Bar Charts by Race/Ethnicity for 2014, 2015, and 2016.
Houston/The Woodlands/Sugar Land, TX Business Statistics - 2014, 2015, and 2016
Businesses with Paid Employees by Race/Ethnicity
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
White (Non-Hispanic)57,68664.158,71363.860,52263.5
Hispanic9,44710.59,58610.410,01810.5
Black or African American3,3933.83,6183.93,6223.8
Asian15,95717.717,41918.918,19919.1
Other3,5633.92,7143.02,9933.1
All firms classifiable by gender, ethnicity, race, and veteran status90,046100.092,050100.095,354100.0

      *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
    **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
  ***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs



Population Percentages vs Business Ownership Percentages Comparison for Houston/The Woodlands/Sugar Land, TX

Race/Ethnicity 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
White (Non-Hispanic)38.6%64.1%25.5%38.2%63.8%25.6%37.8%63.5%25.7%
Hispanic (Non-Black, Non-Asian)35.5%10.5%-25.0%35.7%10.4%-25.3%35.9%10.5%-25.4%
Black/African-American16.9%3.8%-13.1%16.8%3.9%-12.9%16.8%3.8%-13.0%
Asian6.9%17.7%10.8%7.0%18.9%11.9%7.2%19.1%11.9%
Other2.1%3.9%1.8%2.3%3.0%0.7%2.3%3.1%0.8%
Total100.0%100.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%

For the MSA of Houston/The Woodlands/Sugar Land, the deficit of Black-Owned Business Percentage vs Black Population Percentage was higher than the State Average as well as the percentages in the Dallas/Fort Worth/Arlington MSA.   The differences were -13.1% (2014), -12.9% (2015) and -13.0% (2016).

For Hispanic-Owned businesses, the annual deficit was even higher, registering -25.0% (2014), -25.3% (2015) and -25.4% (2016).



San Antonio/New Braunfels Metro Area

Population Statistics

San Antonio/New Braunfels,TX MSA Population Pie Charts by Race/Ethnicity for 2014, 2015, and 2016.
San Antonio/New Braunfels, TX Population Statistics - 2014, 2015, and 2016
Race/Ethnicity 2014* % 2015** % 2016*** %
White (Non-Hispanic)793,40335.4802,24435.1810,65634.7
Hispanic (Non-Black, Non-Asian)1,207,76753.91,236,40654.11,265,66254.3
Black/African-American137,4016.2143,4666.2146,8166.3
Asian47,5802.150,2112.253,3852.3
Other53,0712.454,3752.455,8262.4
Total2,239,222100.02,286,702100.02,332,345100.0

    *Source: U.S. Census Bureau, 2010-2014 American Community Survey 5-Year Estimates
  **Source: U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates
***Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates



Business Ownership Statistics
Number of Businesses with Paid Employees

San Antonio/New Braunfels,TX MSA Businesses with Paid Employees Clustered Bar Charts by Race/Ethnicity for 2014, 2015, and 2016.
San Antonio/New Braunfels, TX Business Statistics - 2014, 2015, and 2016
Businesses with Paid Employees by Race/Ethnicity
Race/Ethnicity 2014* 2015** 2016***
Number of Businesses % Number of Businesses % Number of Businesses %
White (Non-Hispanic)18,00064.818,34464.018,08861.4
Hispanic6,02021.76,27221.97,18224.4
Black or African American3121.13781.33471.2
Asian2,1977.92,1197.42,3748.0
Other1,2654.51,5415.41,4685.0
All firms classifiable by gender, ethnicity, race, and veteran status27,794100.028,654100.029,459100.0

      *Source: U.S. Census Bureau, 2014 Annual Survey of Entrepreneurs
    **Source: U.S. Census Bureau, 2015 Annual Survey of Entrepreneurs
  ***Source: U.S. Census Bureau, 2016 Annual Survey of Entrepreneurs



Population Percentages vs Business Ownership Percentages Comparison for San Antonio/New Braunfels, TX

Race/Ethnicity 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
White (Non-Hispanic)35.4%64.8%29.4%35.1%64.0%28.9%34.7%61.4%26.7%
Hispanic (Non-Black, Non-Asian)53.9%21.7%-32.2%54.1%21.9%-32.2%54.3%24.4%-29.9%
Black/African-American6.2%1.1%-5.1%6.2%1.3%-4.9%6.3%1.2%-5.1%
Asian2.1%7.9%5.8%2.2%7.4%5.2%2.3%8.0%5.7%
Other2.4%4.5%2.1%2.4%5.4%3.0%2.4%5.0%2.6%
Total100.0%100.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%

Black-Owned Businesses that had paid employees in the San Antonio/New Braunfels MSA had a deficit of business ownership percentage vs population percentage of -5.1% in 2014 and 2016.   The 2015 deficit was -4.9%.

For Hispanic-Owned businesses, the deficit -32.2% for the years 2014 and 2015. In 2016 the deficit was -29.9%.



Summary of Differences between Population Percentages and Business Ownership Percentages

Location 2014 2015 2016
Population % Business Ownership % Variance Population % Business Ownership % Variance Population % Business Ownership % Variance
State of Texas11.6%2.3%-9.3%11.6%2.3%-9.3%11.6%2.3%-9.3%
Austin/Round Rock7.0%1.2%-5.8%7.0%1.2%-5.8%7.0%1.3%-5.7%
Dallas/Fort Worth/Arlington14.7%3.0%-11.7%14.8%2.9%-11.9%15.0%3.0%-12.0%
Houston/The Woodlands/Sugar Land16.9%3.8%-13.1%16.8%3.9%-12.9%16.8%3.8%-13.0%
San Antonio/New Braunfels6.2%1.1%-5.1%6.2%1.3%-4.9%6.3%1.2%-5.1%