Sources of Capital used to Start or Acquire the Business

With Paid Employees

Data table with values from the U.S. Census Bureau Survey of Business Owners for 2012. The data shows the number of businesses by various different types of Sources of Capital used to Start or Acquire the Businesses. This data is for businesses with paid employees and is partitioned by the major races/ethnicities, White, Hispanic, Black/African-American, and Asian.

No Paid Employees

Data table with values from the U.S. Census Bureau Survey of Business Owners for 2012. The data shows the number of businesses by various different types of Sources of Capital used to Start or Acquire the Businesses. This data is for businesses with no paid employees and is partitioned by the major races/ethnicities, White, Hispanic, Black/African-American, and Asian.

Primary Source of Capital

For both businesses with and without paid employees, the primary source of capital used to start or acquire the the business was the personal/family savings of the owners.

Description White-Owned Hispanic-Owned Black-Owned Asian-Owned
Businesses With Paid Employees 46.9% 51.4% 49.7% 50.2%
Businesses with No Paid Employees 47.6% 46.8% 46.6% 49.3%

Bank Loans

The data shows that of those reporting, White-owned businesses had a higher percentage of business loans from a bank or financial institution than any other racial/ethnic group. This was true for businsses with paid employees and for those without.

Description White-Owned Hispanic-Owned Black-Owned Asian-Owned
Businesses With Paid Employees 12.8% 8.2% 9.2% 10.7%
Businesses with No Paid Employees 4.7% 2.1% 2.1% 3.3%

For businesses with paid employees, the 12.8% rate for White-owned businesses is 56% higher than the 8.2% rate for Hispanic-owned businesses, 39% higher than the 9.2% rate for Black-owned businesses, and 19.6% higher than the 10.7% rate for Asian-owned businesses.

As for the businesses that did not have paid employees, the 4.7% rate for White-owned businesses is 123.8% higher than the 2.1% rate for Hispanic-owned businesses, 123.8% higher than the 2.1% rate for Black-owned businesses, and 42.4% higher than the 3.3% rate for Asian-owned businesses.