Younger businesses have larger share of minority, women owners

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About 7 percent, or 4,884, of Connecticut businesses with paid employees are less than two years old, according to new Census data made public Thursday.

The U.S. Census Bureau published its inaugural 2014 “Annual Survey of Entrepreneurs” data, a survey that is meant to supplement the Survey of Business Owners done every five years. Information about the age of businesses is new in this data set.

The survey estimates there are 67,920 firms with paid employees in Connecticut. Firms without employees were not included in this data set.

More businesses in Connecticut businesses were between 11 to 15 years — 33,760, or 49.7 percent — than any other group. Just 4,743 were older than that.

Minority-owned businesses

An estimated 7,568 firms, or 11 percent, of Connecticut employer businesses were identified as minority owned. Minority-owned firms make up a much larger share of younger Connecticut businesses than older ones.

About 26 percent of Connecticut firms in business fewer than two years old are minority owned, while minorities owned 20 percent of two-to-three-year-old firms; 20 percent of four-to-five-year-old firms; 15 percent of six-to-10-year-old firms; six percent of 11-to-15-year-old firms and less than 1 percent of firms 16-years and older.

A lot of the oldest firms, about 47 percent of firms 16 years and older, could not be identified as minority-owned or not, either because they were publicly held or some other reason.

Women-owned businesses

A similar trend was true for women-owned businesses — they make up a larger share of younger businesses.

An estimated 11,483 or 17 percent of businesses were women owned.

Women-owned businesses made up about 25 percent of firms newer than two years old, but just 8 percent of the oldest businesses, those 16 years and older.

We encourage you to check our work and build on it. The data and analysis for this story are available here.

What do you think?

  • Joseph Brzezinski

    What part do the demographic differences in younger businesses is due to the legislated price preferences in CT? Will veterans in business increase as well. There are also preferences for unionized businesses. CT is 16% unionized while the country is around 10 or 11 percent.