July 2005

We were pleased with the response from minority business owners who participated in our Quarterly Business Survey conducted in July 2005. The results from this survey indicate a fairly positive outlook from minority business owners. In addition, we asked some new questions on the survey and got some very interesting responses.

We are happy to share the results with you below. We've summarized the results and provided a comparison from the surveys conducted in January 2005, April 2005, and July 2005. As we gather information each quarter, we are beginning to see trends in the minority business owner's outlook for the near future.

Results Summary
Actual Results and Comparison to Previous Business Quarter Results
2004 Quarter IV Results
2005 Quarter I Results

Results Summary

• The mix of business industries represented by the respondents continues to be similar to previous surveys. The largest industry represented being service (43%) followed by manufacturing (29%), media/entertainment (14%), and software and retail equal in representation (7%).  
• Fifty-seven percent (57%) of those responding have been in business for over 10 years; 7% have been in business from 6 to 10 years; and 36% have been in business from 1 to 5 years.
• There was an increase in respondents with 26 or more employees. Since January 2005, respondents have been telling us that they expected to hire more employees and this could be reflected in the responses this quarter. Last quarter 21% of the respondents employed between 26 or more employees, while this quarter 50% employ 26 or more employees. 
• Most (86%) of those responding indicated an expectation to hire new employees in the next 12 months.  This is the third quarter in a row in which minority business owners have expressed the expectation to hire new employees.
• The largest percentage (50%) of respondents own a business $1 million to $5 million in size; followed by 29% own a business over $5 million in size; and 21% of respondents owning a business less than $1 million in size. 
• Regarding the economic outlook 12 months out, 43% of respondents indicated an improved economy, 43% indicated an economy with no change, and 14% indicated a less favorable economy.  This is a slight change from last quarter, in which nearly 80% of respondents expected an improved economic outlook.
• Most respondents (86%) are doing the same or better this business quarter.  
  For the first time since we began conducting this survey in January 2005, some respondents (14%) indicated they are doing worse this quarter as compared to last quarter.
• There were a number of new questions on the survey conducted in July 2005.
• All respondents indicated they employ minorities. Fifty-eight (58%) of respondents have 25% or more employees who are minorities.
• Why respondents chose to start their businesses in the Twin Cities was varied. Most respondents (71%) indicated that personal reasons played a part in choosing the Twin Cities.
• Interestingly, 50% of respondents indicated that the Twin Cities offered an excellent or good economic outlook for minority-owned businesses as compared to other national markets; 25% indicated an average outlook and 25% indicated a poor outlook.
• When asked to describe the minority-owned business environment in the Twin Cities, 58% described it as challenging and 50% describe it as positive. Only 8% described it as negative; 8% described it as prosperous. Respondents were asked to choose as many descriptions as apply.
• Most (64%) minority-owned businesses responding to the survey indicated they are investing the majority of profits in marketing and business development to position their companies for growth.
• The biggest challenges facing minority-business owners include: access to capital, growth, lack of technology investment, finding qualified people, the economy, cash to fund growth, personnel issues, creating awareness, gaining market share with infrastructure to support company growth, sales

Results Broken Down by Quarter
(Milestone conducted a survey in January 2005 to collect results from 2004 Quarter IV; in April to collect results from 2005 Quarter I; and in July to collect results from Quarter II.)

Back to Top