By Lori Smith, Ph.D., Senior Research Associate at AEO
As the nation commemorates Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month this May, the Association for Enterprise Opportunity (AEO) celebrates the vital role that AANHPI entrepreneurs play in the U.S. business community with the release of its 2024 AANHPI Business Ownership Fact Sheet.
Download the AANHPI Fact Sheet here.
From innovative startups to thriving local businesses, AA and NHPI-owned enterprises play a significant role in driving economic growth and employment. Asian Americans own a disproportionately high number of employer businesses relative to their share of the U.S. population, accounting for 11% of all employer businesses while representing only 6% of the U.S. population. According to the latest U.S. Census Bureau data, there are 2.9 million Asian American-owned businesses across the U.S., and Asian American-owned businesses employ more people (5.2 million) than any other minority group. Native Hawaiian and Pacific Islander-owned businesses represent a smaller number of total businesses (92 thousand), but they have grown faster than firms of any other racial or ethnic group since 2012.
“During AANHPI Heritage Month, we honor the resilience, creativity, and determination of AANHPI entrepreneurs who continue to make significant strides despite facing various challenges,” said Natalie Madeira Cofield, President and CEO of the Association for Enterprise Opportunity. “Their entrepreneurial ventures not only create jobs but also contribute to the social and economic mobility of underserved communities across the U.S.”
Even with the substantial contributions of AANHPI-owned businesses, these entrepreneurs face disproportionate challenges accessing capital to start and sustain their businesses. Last year, Asian-owned employer businesses were denied credit at a significantly higher rate than white-owned businesses (29% vs. 18%). Additionally, the AANHPI community is diverse, and many groups with limited assets face additional barriers to starting and running a business. AEO recognizes the importance of providing resources, support, and opportunities tailored to the unique needs of AANHPI entrepreneurs to foster their success.
“Commemorating AANHPI Heritage Month provides the opportunity to shine a spotlight on AANHPI-owned businesses and the challenges they face, especially when trying to access capital, echoing broader concerns about racial equity in our nation”
“Commemorating AANHPI Heritage Month provides the opportunity to shine a spotlight on AANHPI-owned businesses and the challenges they face, especially when trying to access capital, echoing broader concerns about racial equity in our nation,” stated Jessie Lee, Managing Director of the Renaissance Economic Development Corporation (REDC) and the Asian Americans for Equality Community Development Fund (AAFE CDF). “Our minority small business owners constitute the foundation of our community, and it’s imperative they have access to resources to achieve sustained prosperity.”
To mark this celebration, AEO will bring together a diverse panel of experts, stakeholders, and AANHPI business leaders for a groundbreaking virtual conversation as part of its “Equity and Opportunity for All” Series on Thursday, May 23rd. Join us for a meaningful dialogue aimed at creating actionable solutions to drive progress in achieving economic equity for the AANHPI community. Click here to RSVP.
To further expand the dialogue, share your insights and ideas with our research team at [email protected].