| In 2002, the latest year for which U.S. Census data is available, nearly 20 percent of the nation’s franchised businesses were owned by minorities and 25 percent were owned by females, according to a report issued recently by the IFA Educational Foundation, an affiliate of the International Franchise Association. Prepared by PricewaterhouseCoopers LLP, the report is based on data from the Census Bureau’s 2002 Survey of Business Owners. Data also revealed that another 17 percent of franchises were equally male and female owned.
The report, “2002 Franchised Business Ownership by Minority and Gender Groups” presents statistics in two ways: first, the proportion of franchised businesses that are owned by each minority and gender group, and second, the proportion of all businesses owned by each minority and gender group that are franchised. It also considers the percentage of franchised businesses owned by minorities and women in the government’s North American Industry Classification System’s Food Service and Drinking Places business category which has a high concentration of franchises.
“The rapid growth of the Hispanic, African-American and Asian segments of the population continues to create many opportunities for American businesses,” said Matthew Shay, IFA president and head of the 47-year-old organization that represents 1,300 franchise companies and more than 10,000 franchisees. “This report gives us the first comprehensive look at the composition of the franchising industry by minority and gender groups.”
Franchised businesses, which account for nearly 10 percent of the U.S. private-sector economy, can play a major role in providing greater opportunities for business ownership for minorities and women to enter the economic mainstream, Shay said.
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